The Fifth Business Model For App Store

I’m a big fan of Studio Neat. I owned a Cosmonaut, a big fat stylus that works beautifully like a marker. You might say that Pencil is better but I still like my Cosmonaut. 🙂

Currently there are 4 different kind of business model on the App Store.

  1. Free with ads
  2. Free with in-app purchase
  3. Paid subscription
  4. Paid (a single upfront cost)

Paid used to be the way that most apps are charing their users but times have change, people are unwilling to pay for apps. So most apps are are either free with ads or free with in-app purchase. In fact, free with in-app purchase are working really well with games although it is killing it as well.

Interestingly, Studio Neat came up with a 5th model. It is to be free with ads but ads that pushes for it’s own product. This could be a great strategy especially for development studio selling physical products too.  

Studio Neat is in a unique position. We are not just app developers, we also sell physical products. Products that are meant to work with the apps in a way that enhances both, as is the case with the Glif and Slow Fast Slow or Frameographer. What if we make apps that are free with “ads”, but the ad is simply for our other products? You know, the products that actually make money?

via A New Business Model For Slow Fast Slow – Studio Neat.

I’m interested to know how well they do 3 months down the road. If I manage to get them on my email, I would update this post.