I love Smurfberries

There are things I like about app programming, but there are also things that really scare me about it.

Like

First the like: I really like that programmers can invest serious time, but very little money, to design, sell, and deliver an app.  This app can be marketed in an app store, at little or no cost, and at unlimited volumes. 
Scary Fact
Here’s the bad news: App developers are expected to update their apps and add new features. This scares me because these updates are often designed to benefit old customers who have already paid for their apps.  
These updates could bring in little or no revenues.
To solve this problem, App developers must focus on updates that will bring in new customers and more revenues.  Alternatively, they can focus on upgrades and premium versions that will encourage loyal customers to buy more from them.

From mashable.com

Smurfberries

Many apps offer in-app purchases that allow customers to purchase additional software features.  Most notorious of these are Smurfberries.  These in-app purchases bring in cash flows as long as customers continue to use the software.  As long as kids are playing Smurf Village and buying Smurfberries, the developer is receiving revenues.

More and more successful apps are adopting Smurfberry-like features.  First, sell a successful game-app.  Then, invite your consumers to make small purchases that will enhance their gaming experience.  

About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

Trackbacks/Pingbacks

  1. Do you know your whales and high-rollers? « Accountinator - March 19, 2012

    […] much ado these days about Zynga.  I love Zynga’s model of selling “virtual” products which just happen to be costless. […]

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