An IAP based app provides a seamless trial, if implemented well
Get Paid What You’re Worth
Ben Watanabe
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Not to mention, as Marco Arment said, that paid apps will always give consumers pause, sending them on a trip to find a free alternative. This and many other great points on the value of IAP vs. paid app model can be found on Brian Donohue’s great post about making Instapaper free.

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