Switching From Paid Apps to Freemium Models Is A Game-Changer for App Developers


Are you developing an app without a clear revenue strategy? Navigating the app monetization model can be challenging, with no one-size-fits-all solution. Given the competitive nature of the app market, a strategic approach is essential.

Many developers initially opt for a paid app model, hoping for immediate revenue. However, this blog explores the freemium model - because this model has proven its potential to help your app achieve financial success and user engagement. We explore the freemium model not only for its theoretical benefits but because we’ve observed the tangible difference it can make for developers ready to transition from paid to freemium models.

Understanding the Freemium Model

The freemium model is a hybrid approach that offers the core functionality for free, while premium features or content require payment. This approach allows users to try out your product and become familiar with its features before committing to a purchase. This model supports various monetization strategies, including advertising, in-app purchases(IAP), and subscriptions.


edjing’s free version (left) and edjing’s premium features (right)

Why Consider Freemium?

For Your Business Growth:

From a business perspective, the freemium model opens up new revenue channels. In-app purchases (IAP) and subscriptions encourage ongoing user investment, potentially increasing revenue compared to one-time purchases. There’s a common assumption that paid apps attract a more dedicated user based because customers immediately invest in the product. However, this perspective does not fully capture the dynamics within freemium models. The question arises: do freemium users find less value in your product? The answer is nuanced. The value perceived by users is highly dependent on the product itself and the premium features offered. Experience shows that when users are engaged with an app and appreciate its functionality, they are more likely to upgrade to premium versions, thereby validating the high value derived from freemium models.

For Users:

This model also lowers the barrier to entry, allowing your app to reach a wider audience. Freemium apps also democratize access for users, enabling more people to explore and use your app without upfront costs. It allows users to demo your app and see its value, while also allowing you to gain traction with lots of downloads. This wider access can lead to a larger, more engaged user base, driving organic growth and fostering a community around your app.

Ultimately, integrating the freemium model into your app monetization strategy can significantly contribute to sustainable business growth and enhanced user satisfcation.

A Success Story: edjing's Transformation

A prime example of leveraging the freemium model for substantial growth is edjing, a flagship app of MWM, beloved by its user base. The app experienced a significant growth by shifting from a paid model to incorporating a combination of IAP and subscriptions. Transitioning from a purely paid model to one that embraces both in-app purchases (IAP) and subscriptions, edjing saw its revenue multiply significantly. The introduction of IAP alone led to a fivefold increase in revenue, while the subsequent adoption of a subscription model further skyrocketed its earnings, increasing them by about 15 times.


Automix is a premium feature of edjing

This strategic shift not only enhanced monthly revenue but also opened doors to new opportunities in paid user acquisition, demonstrating the profound impact of a well-implemented freemium strategy. With monthly recurring revenue, we were able to forecast cash flows more accurately, enabling us to take significant risks in marketing strategies with confidence, such as increasing the user acquisition budget. MWM’s role was crucial in this journey, offering expert guidance through the complexities of monetization strategies and ensuring edjing’s seamless transition. Developers partnering with MWM benefit from a proven platform and a dedicated team, all committed to leveraging strategic business model transformations for app success.

Transitioning to Freemium with MWM

Shifting to a freemium model might seem challenging, particularly with the complexities of analyzing user data for strategic planning. However, with MWM’s expert guidance, developers can navigate this path smoothly. Changing from a paid model to freemium involves more than adjusting your app’s pricing strategy. It requires a comprehensive redesign of the user experience to balance free features with appealing premium offerings.

MWM expertise provides end-to-end support from identifying the optimal mix of free and premium features, analysing data with user patterns and behavior, running price A/B tests, to implementing paywalls and subscription services. We know what are common mistakes can be made in freemium models and what to look for. Our approach is tailored to each app's unique value proposition, ensuring a smooth transition that maximizes revenue without compromising user satisfaction.

Wrap-Up: Ready to Unlock Your App’s Full Potential?

Transitioning to a freemium model opens your app to a wider audience and significantly boosts revenue potential. If you're a developer unsure about marketing or monetization strategies, MWM is here to guide you through this transition, leveraging our expertise to identify the ideal monetization model for your project.

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