Fee Based Apps vs. Free Apps With Ads

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Fee Based Apps vs. Free Apps With Ads

bilbosax
Sorry guys, I know that this is not a Flex-based question, but I really value
the opinions on this forum and wondered if you could give me a little advice
from your personal experiences since I just launched my business based on
AIR.

I recently started a small business and wrote three Adobe AIR mobile apps
related to the business.  The apps are subscription-based and are not cheap
at $29.99-$49.99/month.  As such, only users that absolutely must have the
app are using it, even though a much larger group of people would LIKE to
use it but can't justify the cost.  I know that if the app were free to
users, the number of users to sign up would increase by a large factor.  But
to support this, I would absolutely have to depend on ads to cover the
bandwidth and data costs, as well as to make a profit.  But I have no idea
how successful ad-based apps are, and if they can bring in more money and
not simply more users.

Does anyone here have any experience with writing mobile apps based on both
fees and ads, and could give me any insight on the advantages or
disadvantages of both??

Thanks guys!



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