Yeah I guess that makes sense. That's too bad though, because it could be used for a lot of legitimate causes(though I can definitely see how it could be abused.)
Problem is, what if you do this but then it doesn't go to plan? What if this model earned less money than you were getting with your current business model? You would have to struggle to try and reclaim your original business model again. I think some experimenting should be done on new apps before worrying about whether you should change your old apps to this idea.
I agree with you. Never do experiments with apps you already sold - it doesn't matter what you do, you will always lose trust if you don't have a consistent and transparent business model. Even the best ideas will be misunderstood and generate confusion among existing customers. A lot of people will just wait for a complete version for $1-$2 if you confuse them too much with different prices and versions of your apps. Your idea gets even more complicated if you want to add additional content at a later point in time. Furthermore I would always be afraid, that the developer will remove some versions in the future, if his whole concept looks like a big experiment. This would remove the update-feature (an important advantage over pirated copies) for the afflicted customers. Another problem with free demo and in game purchases is, that review sites will lose income from affiliate links. Why should they consider your app for a review, if they can't earn a singe dollar from appstore links? This may work if you app can really impress the reviewer, but if they have to decide between two apps, they will surely choose the one that will generate some income for the site. Therefore I would suggest that indie developers stay away from In App Purchases - this concept will only work for very few high profile companies and apps.
