Monetization Models: Choosing The Right Monetization Strategy For Your Game
Finding the Best Money-Making Model
Selecting the optimal approach to generate revenue from your game is crucial for its financial success and longevity. With a crowded marketplace and fickle players, finding the right monetization fit can be challenging. This article will guide you through assessing your game, analyzing common money-making models, evaluating fit, maximizing long-term value, and testing for optimal returns.
Assessing Your Game and Audience
Game genre, gameplay length and depth
The genre, depth, and length of your game gameplay dictate which money-making models are viable. Simple mobile games often thrive with advertising, while immersive PC/console titles monetize better through upfront payments or in-game transactions for virtual goods. The more time users spend in your game, the more opportunities to generate revenue through different approaches.
Target player demographics and preferences
Understanding your target demographic’s income level, willingness to pay, and attitudes toward different models is key. Teen players may not be able to pay upfront but could monetize through ads. Hardcore gamers prefer paying once or subscriptions to avoid ads and transactions. Analyze competitors’ monetization approaches and player opinions to identify models fitting your audience.
Common Monetization Approaches
Paid downloads
Charging an upfront cost to download a game can generate substantial revenue but may deter players. Pricing too high reduces converted downloads exponentially while pricing too low leaves money on the table. Variable and dynamic pricing can help find the optimal balance. Upfront payments work best for highly engaging games with lengthy and deep content.
In-app purchases and microtransactions
Selling virtual goods and services within free-to-play games is highly lucrative. Offering consumables, durables, and enhancements can appeal to paying player segments without deterring wider adoption. Using variable and dynamic virtual good pricing based on analytics maximizes revenue. Beware of monetizing too aggressively and fostering pay-to-win perceptions.
In-game ads
Displaying video and display ads within a game provides continuous revenue scaling with userbase size. Ads work for nearly any genre or demographic but interfere with gameplay and immersion. Strictly control ad quantity and timing to optimize views without excessive interruption. Support players watching ads voluntarily for in-game rewards to drive engagement with ads.
Subscription models
Recurring subscriptions for continuous access to games maximize customer lifetime value and provide predictable revenue. Monthly or annual subscriptions fund ongoing content creation to serve subscriber needs. Subscriptions work best for games updated frequently that tap into player desire for status and exclusivity.
Crowdfunding
Validating interest and securing early development funding via Kickstarter-style crowdfunding campaigns provides cash flow plus valuable audience involvement and feedback. Supporter rewards can drive viral referral growth. Crowdfund only after establishing a core fanbase enthused to access exclusive backer-only content and participate in funding.
Evaluating Monetization Fit
Revenue potential
Estimating total addressable revenue from different models relies on game type, length, depth metrics combined with userbase size, conversion rate, and price point assumptions. Score approaches on fully realized revenue magnitude and consistency. Maximizing lifetime player value requires steadily monetizing the same users through multiple models like ads, transactions, battle passes, etc.
Impact on user experience
Assess how introducing different models enhances or diminishes overall gameplay enjoyment and flow. Well-executed approaches feel organic and even improve experiences by enabling content investments. Overly aggressive tactics produce backlash and brand damage. Favor user experience over short-term revenue whenever questions arise.
Maximizing Long-Term Value
Avoid pay-to-win pitfalls
Monetizing gameplay advantages risks significant community blowback. Even slight “pay-to-win” perceptions can tank engagement. Strictly monetize cosmetics and convenience only. Seek inspiration from leading titles succeeding commercially while maintaining gameplay integrity and access equality.
Providing ongoing content and incentives
Satisfying hardcore fans willing to spend substantial sums requires continuous delivery of novel gameplay modes, narratives, meta-games, collectibles, and environments. Investing revenue into regular content expansions caters to enthusiast interests while attracting media coverage and new adopters.
Building community and communication channels
Direct communication channels like Discord servers and Reddit forums foster tight-knit player communities increasing referral, retention, and revenue. Solicit suggestions for game improvements and new content types. Provide fans early peeks at upcoming changes to maintain transparency and build trust in monetization tactics.
Testing and Optimization
Start with minimum viable monetization
Launch with a single unobtrusive money-making model like ads or transactions for virtual currency only. Track revenue and usage data to estimate demand for expanded offerings. Avoid overwhelming first-time players with excessive monetization entry points potentially hampering adoption and retention.
Experiment and track metrics
Incrementally add models and vary pricing, offerings, and presentation to identify optimal configurations. Rigorously instrument key monetization, engagement, and sentiment metrics. Tie changes directly to observed data trends to confirm impact. Pay attention to qualitative feedback on new monetization from reviews and forums.
Respond and adjust based on data
Let usage patterns and returned revenue govern monetization strategy, not guesses or industry trends. Double down on tactics demonstrating sustainable traction. Phase out underperforming options diluting user experience. Continuous rapid iteration aligned to metrics moves monetization and profits to higher planes.
