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We've tried a premium-only approach with previous apps and we've gotten feedback that our users like the option to try before they buy - which is what led us to IAP.

Also, when we've tried a premium-only approach our apps have been made available for jailbroken devices within a couple of weeks, with little chance to directly monetize these pirated free copies of our apps. See, for example: http://theikidsblog.com/blog/2010/11/30/arr-there-be-pirates...

This time around our approach was to build a premium product, price it accordingly and let people try it out via the free version. It's hard to know what the best way to handle it is - but that's definitely part of the fun of the wild west of mobile apps these days..and as I mentioned in an earlier comment, the freemium model seems to have a lot of traction..




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