Contingent Pricing is a new feature on the App Store called “Contingent Pricing for Subscriptions.” This tool helps you attract and keep subscribers by allowing you to offer a discounted subscription if they stay subscribed to another service, whether from the same or different developers.
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What is the Contingent Pricing Feature?
Contingent pricing means deciding how much a product or service costs based on what it achieves. It’s commonly used in law, consulting, and software development. In software development, it means setting the price based on the project’s success or hitting certain goals.
For example, a software company might use contingent pricing for a project, tying the price to how many users sign up for the product. They get a percentage of the money the product makes.
Contingent pricing can be good for developers who trust they can get good results. But it’s risky because if the project doesn’t work out, they might not get paid.
Benefits Of Contingent Pricing Feature For Developers
As per Apple’s official post, Contingent pricing applies to subscriptions from one or two different developers. For example, you can offer Ocean Journal premium subscribers a special deal: they can get Mountain Climber at a discounted rate of $4.99/month instead of the regular $5.99. As long as they stay subscribed to Ocean Journal, they keep the discounted price.
9to5Mac found a program that comes with a rule: To keep getting the discount, you must stay subscribed to the first app. If you cancel that subscription, you’ll have to pay the full price for the second app in the future.
Conclusion
Apple is currently testing the feature and aims to bring more developers on board in the next few months. If you’re interested in adding contingent pricing to your app, start planning now and sign up to be notified when more details are available in January.
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FAQ’s
What is Contingent Pricing on the App Store?
Contingent Pricing is a new feature designed for subscriptions, allowing developers to offer discounted rates to users who maintain active subscriptions to other services.
How does Contingent Pricing work?
Developers can attract and retain subscribers by providing a reduced subscription price if users stay subscribed to another service, whether from the same or different developers.
Is Contingent Pricing limited to subscriptions from the same developer?
No, Contingent Pricing can be applied to subscriptions from either the same developer or different developers.
Can you provide an example of how Contingent Pricing may be used?
Certainly. For instance, a software development company could offer Ocean Journal premium subscribers a discounted rate for subscribing to Mountain Climber, contingent on their continued subscription to Ocean Journal.
How does the payment structure work for developers using Contingent Pricing?
Developers receive a percentage of the revenue generated by the product or service offering Contingent Pricing, based on the agreed-upon terms.
What types of subscriptions does Contingent Pricing apply to?
Contingent Pricing applies to subscriptions from either one or two different developers.
Can you provide an example of how Contingent Pricing works in practice?
Certainly. For instance, you can offer a special discounted rate of $4.99/month for Mountain Climber to Ocean Journal premium subscribers, as long as they maintain their subscription to Ocean Journal.
What is the condition for users to continue receiving the discount under Contingent Pricing?
To maintain the discounted price, users must keep their subscription active for the initial app that qualified them for the discount.
What happens if a user cancels the subscription to the initial app under Contingent Pricing?
If the user cancels the subscription to the initial app, they will lose the discount and have to pay the full price for the second app going forward.
