Funding And Monetization Strategies For Independent Game Development

Funding Your Indie Game Project

As an independent game developer, securing funding is crucial for transforming your video game idea into reality. With limited personal savings and access to investors, indie developers often need to get creative in funding their projects. From crowdfunding campaigns to government grants, utilizing a diversity of funding sources can help you achieve financial runway for your game’s production.

Crowdfunding Platforms and Strategies

Crowdfunding platforms like Kickstarter and Indiegogo have become popular ways for indie game developers to raise money. By creating a compelling project campaign page and incentives for backers, you can validate and fund game concepts entirely through pre-orders and fan support.

Kickstarter/Indiegogo campaigns

Running a high-converting crowdfunding campaign is equal parts art and science. The basics for maximizing your fundraising potential on platforms like Kickstarter and Indiegogo include:

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Creating an attractive project page with gameplay videos and visually stunning imagery that communicates your game’s ambiance.
Setting a realistic funding goal based on your budget needs that doesn’t seem too ambitious or underwhelming.
Offering enticing incentives at various backing amounts, including early access, merchandise, or having NPCs named after supporters.
Executing an intensive marketing campaign across social media, forums, emails, and cross-promotions to drive traffic and conversions to your campaign page.

Viral marketing elements like funny campaign videos seem to improve response, allowing some indie games to raise over 5X their original Kickstarter funding goal. Treating your crowdfunding page like its own project can set your fundraising performance apart from the crowd.

Publishers

While relinquishing some control, partnering with a game publishing company can provide much-needed funding and marketing resources. To secure a publisher:

Prepare a polished pitch deck that communicates your game concept, screens, team background, and market viability to convince publishers to invest.
Be prepared to negotiate on revenue share splits and intellectual property rights. Industry standards range from 70/30 to 50/50 splits in the publisher’s favor, but desirable projects can achieve more equitable terms.

While publishers front most development costs, they expect to recoup their investment, so unrealistic funding requests or overly confident revenue projections can hurt your chances. Publisher funding should be seen as the acceleration of an already promising game concept rather than a first resort for an incomplete idea.

Government Grants

National, state, and local governments offer various programs to support the arts and cultural initiatives like game development:

Grants may be available locally for entertainment and technology companies to assist with operational costs like equipment and wages.
Larger indie game hubs have cultivated public-private initiatives providing mentorship, incubator space, and seed funding to nurture new startups.

While smaller and highly competitive, government grants can provide non-dilutive funding without sacrificing creative control or ownership. Make sure to understand eligibility and comply with any accounting, milestone reporting, and public policy requirements.

Monetizing Your Indie Game

Once your indie game is complete, turning free players into revenue is crucial for recuperating costs and staying in business. The right monetization strategy respects players, aligns to gameplay, and sustains company operations long-term through ethical methods like:

Premium Upfront Pricing

Setting a paid upfront price is a common approach for premium indie titles focused on deep gameplay versus mass market appeal:

The price should reflect the game’s production values, depth and amount of content to signal worth. Overpricing risks lack of adoption while underpricing leaves money on the table. Early access and discounts can help fine-tune strategy.
Regular sales and bundling with similar games gives opportunities to broaden your player base. Being featured in indie bundles alongside other popular titles expands exposure.

Upfront payment is a trusted model when targeting engaged gamers willing to pay a fair price. Keeping the game cost reasonable while intermittently going on sale avoids pricing out potential players.

In-Game Ads

For indie developers focused on mass reach over maximized revenue per player, in-game ads provide recurring income scaled to viewership:

Major mobile ad networks like AdMob offer mediation services that serve and optimize relevant ads within gameplay while handling payments.
Limiting ad frequency through incentivized rewards ads prevents a cluttered experience. Only show ads when the user chooses to engage.

In-game ads monetize off extensive game playtime, so fun moment-to-moment gameplay balanced with unobtrusive ads during natural breaksmaximizes player retention and lasting ad revenue.

In-App Purchases

Additional game-enhancing in-app purchases (IAPs) allow motivated players to enrich their experience:

“Cosmetic-only” IAPs that customize appearances without affecting gameplay are considered ethical. “Pay-to-win” IAPs that create disadvantage for unpaid players should be avoided.
Virtual currencies distancing real currency from items, or only selling gameplay shortcuts avoid potential “paywalls.” Focus on value-added premium content.

When designed appropriately around non-essential additions, in-app purchases provide continued revenue from loyal players without exploitation. Cosmetic and convenience-based options sustain series they love through ongoing developer support.