In-App Purchasing allows a user to purchase something inside the app without leaving – the entire transaction being instantly processed by Apple.
There are a number of ways you can integrate In-App Purchasing into your app:
Consumables – A one time service that must be purchased every time the user downloads it.
Non-Consumables – A one-off purchase that doesn’t expire or decrease.
Auto-Renew Subscriptions – The purchase of updating and dynamic content for a set duration of time. Subscriptions renew automatically unless the user opts out.
Free Subscription – Allows you to put free subscription content in Newsstand and can only be offered in Newsstand-enabled apps.
Non-Renewing Subscription – Can be used for services with a limited duration that requires the user to renew their own subscription.
In-App Purchases offer a serious monetisation strategy for all apps, paid and free alike.
Here are a few potential strategies you can use to monetise your app with in-app purchases.
Full Version Unlock – You no longer need to submit a Lite version and a Full version to the app store for users to upgrade and receive additional features. This can easily be done from within the app and industry information suggests that the conversion rate for in-app purchases to go from a lite to full version are between 10-25%.
Improve Your Experience – This certainly applies to games where you can upgrade your character with weapons or extra powers but even if you don’t have that option you could simply offer some alternative textures or design backgrounds that could be used to change the look and feel of the app.
Make The App Ad Free – This is similar to unlocking a full version and is a simple way to bring in some money.
Purchase A Subscription – In-App purchases allow you to purchase a subscription or renew payment opt-ins that will give them access to certain content.
There are still a variety of other, creative ways to monetise your app however this should give you an idea of what you can do to get started.