

Ask HN: use ads or charge customers - steve8918

I'm looking into writing an iPhone app that will require the use of a backend server.  In order to self-fund the server(s), I need to get some form of revenue stream from the app.  But I'm not sure if I should put ads on it, or charge a nominal fee.<p>If I put ads on the app, obviously this is a continuous revenue stream, but I'm worried about the user experience.  If I charge a nominal fee (0.99 most likely) then I get a one-time bump, but then have to keep paying for the servers myself after that.<p>So I'm leaning towards putting ads on my app, but I'm not sure if it's a big deal having ads, or if the money would even be worth it?  Any insights anyone could provide on this?
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profitbaron
Without knowing what your app is, it isn't easy to say which revenue stream
would be better suited for you. However, saying that WhatsApp operate in a
sector which has several free rivals and is a paid app, and is successful so
it doesn't really matter what type of app you have because, if it is a good
app then people are prepared to pay for it.

Nevertheless, have you considered offering _"2 versions"_ of your app?

As you could offer a "Lite" Version which has 1-2 features missing and Ads
(including offering to upgrade to the "Paid" version) and a "Paid" Version
which has the 1-2 missing without Ads. What is important however, is that the
1-2 features that you remove are essentially _bonuses_ and not core to the
operation of the app but rather _a nice feature/addition to the app_.

With regards to the user experience, just ensure the ads are incorporated into
the design/experience of the app when you are creating it rather than making
it feel as if they were just added at the end in order to make revenue from
the application as this will reduce the affect upon the user experience from a
users point of view - Although don't make the ads so integrated that they
don't annoy users to pay to remove them (i.e. from your "paid" app) - they
still need to be slightly annoying as you will get people paying for your app
just so they no longer see the ads.

