Monetization Models For Indie Games: Finding The Right Strategy

The Struggle of Monetization for Indie Developers

Indie game developers often face significant challenges in finding effective monetization strategies for their games. With small teams and limited budgets, funding ongoing development and support to create profitability can be an uphill battle. Key struggles include:

High competition in crowded app stores like the iOS App Store and Google Play Store makes visibility difficult
Price sensitivity from players unwilling to pay high prices for games from unknown developers
Increased expectations from players for polished, high quality experiences even from indie titles
Higher rates of turning to free-to-play models too early without clear monetization paths planned out

These factors and others create tricky dilemmas for indie studios on how best to monetize their creations. They must balance finding revenue to support the team and future games with setting prices and models that work for their audience and avoid turning off players.

Popular Monetization Models to Consider

Paid Downloads

Selling games through paid downloads, either upfront or using a shareware model, has long been a popular approach. This provides direct revenue for each purchase to support developers. However, it also limits the potential audience only to those willing to pay the asking price. Indie titles often struggle to justify higher prices against consumer expectations. Developers must determine an appropriate price that generates sufficient income without deterring too many potential players.

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In-App Purchases

Offering games for free and monetizing through in-app purchases can enable reaching more players. This model can work well when virtual goods or added content purchased drive ongoing value. However, simply selling functional boosts or upgrades that give buyers an advantage may appear “pay-to-win” and turn off players. Cosmetic enhancements or new levels/modes that enrich but don’t ruin gameplay for non-paying users are better approaches.

In-Game Advertising

Placing ads in free games to generate revenue from impressions is a major model for indie developers. Care must be taken to avoid overly intrusive or disruptive ads that detract from user experience. Interstitial or video ads that interrupt play should be limited while offer walls and playable, rewarded ads can capture revenue while entertaining. Most games optimize by focusing ads around natural breaks in gameplay already.

Choosing the Right Strategies for Your Game

Rather than take a one-size-fits all approach, developers should consider many variables in matching monetization models to each game appropriately, including:

Game Genre and Platform: Certain genres have established price standards while platform demographics also differ. For example, hyper-casual mobile puzzlers thrive on ad support while premium PC/console titles can justify paid models more easily.
Target Audience: Games aimed at younger players may lean more into parental purchases via in-app models while titles for adults could use subscription models.
Combinations: Layering multiple models like combining cosmetic in-app purchases with incentivized ads can maximize revenue.

Experimenting across modes during beta tests and soft launches helps determine resonance before wide release. Focus should remain on sustaining viable monetization without damaging gameplay integrity or discouraging your core audience.

Optimizing Ad Networks and Other Platforms

Once monetization models involving advertising, in-app purchases or other platform components are selected, full optimization provides major revenue upside. Steps like:

Selecting the highest paying ad networks compatible with target users.
Understanding how app store search algorithms highlight titles for visibility.
Promoting games effectively across social/owned channels before launch.

Reduce friction in enabling spending for engaged audiences. Allow players ready to transact access needed to properly support ongoing development.

Case Studies of Successful Indie Games

Deepwell – Midcore RPG

The hit mobile RPG utilized level-based character boosts across a ~200 hour storyline funded by incentivized ads rewarding players willing to opt-in. Additionally, a $4.99 purchase removed mandatory ads to avoid interference. This hybrid approach enabled a top 50 grossing game on iOS and Android globally.

Temple Crashers – Casual Match-3

Ad monetization only without hampering fast-paced gameplay worked for this breakout puzzler. Short sessions allowed use of opt-in video ads between play without slowing action or distracting users. The instant accessibility attracted wide download volumes across global stores.

Best Practices for Iterating Your Monetization Approach

All popular platforms provide rich analytics to optimize monetization performance. Monitoring metrics like:

Overall/Paid Download percentages
In-game purchase conversions/revenues
Retention/Churn across models
Ad viewability/Click through rates

Can influence optimization choices per model. Additionally, incorporating qualitative feedback from reviews or community forums measures sentiment/satisfaction. This input combined gives indicators on changes needed to improve commercial results without detriment to players.