Hi all. I've read a few posts on here on the subject of free -> paid app conversion so wanted to get views on approaches.
Problem
I want to release a beta / proof of concept of an app onto the App World. This will be a free release. At some point I want to charge for the final product. The point at which I'll be in a state to do this (i.e. have the final product) is undetermined due to personal time constraints so I think this precludes a Try & Buy license model. When this transition does occur I would obviously like to do so with as little negative feedback from customers as possible.
Options
The way I see it there are two ways to achieve this from an app versioning perspective:
A) Release the PoC app on a Free license and then, when the full version is ready, provide this as an updated version of the same app.
B) Release the PoC app on a Free license and when the full version is ready, provide this as a new app with an update in the PoC to direct existing users to it should they wish to pay for the full version.
Option B has fairly clear advantages and disadvantages:
+ No confusion over upgrading currently installed apps
- Risk of existing customers not noticing the new version
- Potentially a "spammy" approach to app delivery
Now, what I don't entirely understand is what the effect would be with option A. I've seen posts about setting upgrade price vs new price and I still don't quite get, for each option, what this then provides to existing users and new users. As I understand it so far:
1. Setting the overall app price will mean new users have to pay that price
2. Setting the overall app price will prevent existing users from upgrading without paying and also prevent them from re-installing without paying
3. The upgrade price can be set on the release itself (??). I assume this has to be <= the full price of the app and theoretically existing "free" users should then only pay this amount rather than the full amount.
3 is the one I'm really not clear on, especially seeing some posts suggesting that there's a bug that means an app released as free would always have to pay full price for an upgrade, regardless of what you set on that release.
I think the main con of this option is the risk of negative response from users who expect the app to remain free, regardless of whether you've made this clear or not up front.
Questions
So I guess there's three things I'm trying to understand:
1. How does the upgrade pricing work?
2. What do people thing of the approach of releasing multiple apps (B)?
3. Is there a better way? Writing this I'm wondering if it's better to start the beta in the 0.99 tier and then the upgrade - assuming a jump to the next tier for final price as an example so an upgrade of 1 - would indeed work for those who went for the PoC. This option could, however, provide exactly the same con as the free -> paid approach A. I guess there's no pleasing some people!
On the other hand approach A) is a brute-force method for collecting money, user has to decide whether the app is worth the price 
