IAP Revenue = Units Sold x Price per Unit. Net IAP Revenue = IAP Revenue x (1 - Platform Fee). For example: 500 sleep packs x $4.99 = $2,495 gross. After Apple's 30%: $1,747 net. IAP-to-Subscription Conversion Rate = IAP Buyers Who Later Subscribe / Total IAP Buyers x 100.
Consumables (credits, tokens), non-consumable add-ons (specific content packs, themes), and lifetime unlock options work well alongside subscriptions. The key is offering IAPs that complement rather than cannibalize your subscription. If users can get everything they need from $2.99 IAPs, they will never subscribe.
Yes. Both platforms charge a commission on all in-app purchases of digital goods and services. Apple charges 30% (15% for Small Business Program members or after first year of subscription). Google charges 15% for subscriptions. Physical goods and services sold through apps are not subject to these fees.
It depends on your economics. A lifetime option at 3-4x annual price can attract one-time buyers and generate upfront revenue. But it caps the user's LTV and can cannibalize recurring revenue. If you offer it, price it high enough that the subscription remains the better deal for most users. Some apps make lifetime available only as a retention offer for long-term subscribers.
A native message displayed within the app interface (e.g., banners, modals, full screens) used to guide user actions - such as starting a trial, updating payment info, or exploring premium content. IAMs complement push notifications for mid-session engagement.
The process of determining which marketing source or campaign drove an app install. Accurate attribution is needed for measuring CAC, optimizing performance marketing, and analyzing subscriber LTV by channel.
The percentage of users who install the app and ultimately start a paid subscription. This is a key funnel metric for evaluating onboarding effectiveness, paywall performance, and the overall value proposition.
A user's status, tracked by the app store, that determines whether they qualify for introductory pricing. On iOS, eligibility is typically limited to one offer per subscription group per Apple ID, meaning churned users may not qualify again.
A discounted subscription offer available only to first-time subscribers for a limited time (e.g., $0.99 for the first month). It's used to lower entry barriers and increase trial-to-paid conversions, and is governed by platform-specific rules on eligibility.
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