How can you choose the best game monetization model?

1 Factor 1: Game genre and audience

The first factor to consider is the type and style of your game, and the preferences and expectations of your target audience. Different game genres and audiences may have different attitudes and behaviors towards spending money on games. For example, casual and hyper-casual games may benefit from ads and in-app purchases, while premium and niche games may rely on upfront payments or subscriptions. You should research your market and analyze your competitors to understand what works and what doesn't for your game genre and audience.

2 Factor 2: Game design and value proposition

The second factor to consider is how your game design and value proposition align with your monetization model. Your game design should support and enhance your monetization model, not hinder or conflict with it. For example, if your game is based on skill and progression, you should avoid pay-to-win mechanics that may frustrate or alienate your players. Similarly, if your game is based on social and community features, you should leverage them to encourage engagement and retention. Your value proposition should also communicate clearly and convincingly why your players should pay for your game, whether it's for access, content, convenience, customization, or status.

3 Factor 3: Game lifecycle and goals

The third factor to consider is how your monetization model fits with your game lifecycle and goals. Your monetization model should be sustainable and scalable, meaning that it can generate consistent and growing revenue over time, and that it can adapt to changing market conditions and player demands. You should also consider your short-term and long-term goals, such as acquiring new players, retaining existing players, increasing conversions, maximizing profits, or expanding to new platforms or regions. Depending on your goals, you may need to adjust or combine different monetization models to optimize your results.

4 Example 1: Ads

Ads are one of the most common and simple game monetization models. They allow you to generate revenue by displaying ads to your players, either in exchange for rewards, or as an interruption or distraction. Ads can be effective for casual and hyper-casual games that have high traffic and low retention, as they can monetize a large and diverse audience without requiring a direct payment. However, ads can also have drawbacks, such as reducing the quality and immersion of your game, annoying or driving away your players, or depending on external factors such as ad networks and rates.

5 Example 2: In-app purchases

In-app purchases are another popular and flexible game monetization model. They allow you to sell various items or services to your players, such as extra lives, power-ups, skins, characters, levels, or subscriptions. In-app purchases can be effective for free-to-play games that have high retention and engagement, as they can monetize a loyal and active audience by offering them value and choice. However, in-app purchases can also have challenges, such as balancing the game economy and difficulty, creating and updating content, avoiding pay-to-win scenarios, or complying with regulations and policies.

6 Example 3: Premium

Premium is a traditional and straightforward game monetization model. It involves charging your players a one-time fee to download or access your game, without any additional costs or ads. Premium can be effective for niche and high-quality games that have a strong reputation and appeal, as they can monetize a dedicated and willing audience by delivering a complete and satisfying experience. However, premium can also have limitations, such as competing with free alternatives, attracting and retaining players, updating and supporting your game, or pricing and distributing your game.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?