In our consultations the most often asked is: What subscription model should I choose? Which one suits my business? Which one works the most effectively?
We made a short summary about the subscription models to support you in making your decision.
Freemium means your user can
access the app for free.
The app allows influencers/content creators to integrate content, ads & product placements to generate revenue for you & for your sponsors and affiliates.
Content
Ads
As in old times marketing mix, use the right dosage of the tools above to create visibility for the brands sponsoring you. It is important that your users understand nothing is for free so you have certain brands you promote on your app. We suggest connecting sponsors (influencer marketing deals) or ads to a freemium, so when users are using your app you still make money with.
As the title shows this is a mix of the Freemium and Premium model, so you can provide free access to your app with integrated ads, but the users will also have the possibility to purchase a subscription and see more content and/or use the app ad-free.
If you chose a subscription model you need to be sure:
When you work with a subscription based model, you need to update your content on a regular basis or have features people need on a daily basis.
Subscription pricing
First you need to decide about the period of a subscription. 1 month, 3 months, 6 months, 1 year. Then understand your followers, how much they are ready to pay. All in all the price of your app really depends on the power of the content.
Packages are one time fees. They can be used with a freemium model or added to a subscription as additional content/feature.
Packages
These are contents which can be sold once. Special educational video content, challenge programs to change habits, recipes & special meal plans can be part of that. You can target a specific user base & sell them a package. The content of the packages are available only after placing an in app purchase.
Teaser content
Teaser content is used to give some freemium content to user to decide after if they are interested to buy the package. Teaser content can be a few blog post, video, recipes, meal plans, etc.
Package pricing
It really depends on your content & features you offer. This can be from 2 figures number even to 3-4 figures one. We suggest researching a bit before & make some tests with your users. Package pricing should always play with discounts & promotions.
Choosing the right business model that suits your app the best is a pivot and a question to think about from the very first steps of planning, but don't let this scare you. We are always happy to consult, plan and find the right solution!