The In-App Freemium Model

We're now letting users download reMail for free and then upgrade to IMAP support and no ads. Previously we were charging $4.99 upfront, now we're selling features via In-App purchase. I think many useful apps will eventually charge this way. For example, navigation apps might charge you per city or per routing instead of charging $80 upfront. Games have already shifted to selling virtual goods and levels.

Initial sales are encouraging. I'll let you know how it worked out for us once I have more data.

Read more about how we implemented freemium on the reMail blog.