Does Free iPhone Software Pay?

Developers of certain high-profile iPhone applications have discovered a stream of significant, new-platform money. Smaller developers have also been able to generate modest income, with the first paychecks for many coders now received from Apple.

One category of revenue intake many developers are closely watching is that of free-to-paid conversion. Since no real shareware model exists for the iPhone, some developers have decided to offer free, limited-functionality versions of their applications alongside paid, full-functionality versions. The question is whether or not users will convert to the paid version after having used (or at least downloaded) the free version.

Stats from one developer paint a fairly grim portrait, though not one that is wholly out of line with shareware conversion rates for other platforms.

Read the whole article @ iPhone Atlas

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