What is a “Freemium” App?

A “freemium” app is a free download that rather than charging users a flat rate, uses in-app purchases to generate revenue.

There are usually a few tiers to an app. The first tier is always free. That’s what is referred to as “freemium”. You obtain the word “freemium” when you combine “free” and “premium”.

Mobile app developers Los Angeles—or any other city—offering freemium apps or services, bank on the idea that 1 or 2 percent of users will choose to pay for the full-featured app or service. More often than not, paying users cover the cost of freemium users. For any given app, power users pay for more functions or space.

The Pitfall

What if the app doesn’t attract 2 percent of users, who pay for the premium version? Or what if the charges aren’t enough to cover all costs? The owner of the app has two choices: get consumed in freemium flames, or charge everybody.

The Upside

As an iPhone app development company Los Angeles, you want your iPhone apps to generate at least some revenue. Here’s what you can do to realize success in your company: give the business enough time and more free users may just decide pay for your services.

Today, mobile app development Los Angeles has become more popular than ever. Companies looking to succeed in this industry need to know that a free app is downloaded more, compared to a paid app. Consequently, the number of in-app purchases exceed what a premium version could make.


Halcyon Innovation is a group of Android and iPhone app developers from Los Angeles. Halcyon makes applications for businesses around the globe.