9.5. Monetizing Apps: Using In-App Billing to Sell Virtual Goods

Google Play’s in-app billing service (http://developer.android.com/google/play/billing/index.html) enables you to sell virtual goods (e.g., digital content) through apps on devices running Android 2.3 or higher (Fig. 9.9). According to Google, apps that use in-app billing earn profoundly more revenue than paid apps alone. Of the 24 top-grossing apps on Google Play, 23 use in-app billing.⁶ The in-app billing service is available only for apps purchased through Google Play; it may not be used in apps sold through third-party app stores. To use in-app billing, you’ll need a Google Play publisher account (see Section 9.6) and a Google Wallet merchant account (see Section 9.7). Google pays you 70% of the revenue for all in-app purchases made through your apps.

6. http://android-developers.blogspot.com/2012/05/in-app-subscriptions-in-googleplay.html.

Fig. 9.9 | Virtual goods.

Selling virtual goods can generate higher revenue per user than in-app advertising.⁷ A few apps that have been particularly successful selling virtual goods include Angry Birds, DragonVale, Zynga Poker, Bejeweled Blitz, NYTimes and Candy Crush Saga. Virtual goods are particularly popular in mobile games.

7. http://www.businessinsider.com/its-morning-in-venture-capital-2012-5?utm_source=readme&utm_medium=rightrail&utm_term=&utm_content=6&utm_campaign=recirc.

To implement in-app billing, follow the steps at

For additional information about in-app billing, including subscriptions, sample apps, security best practices, testing and more, visit http://developer.android.com/google/play/billing/billing_overview.html. You can also take the free Selling In-app Products training class at