What are some design principles for monetization and business models?

When it comes to mobile F2P games: Understand your key demographics. Different type of players have different type of tolerance when it comes to monetization. Align the gameplay with your monetization strategy, when you develop your game you have to think about how you will monetize it, creativity is important but some business decissions have to be taken at the same time. You don't want to just "add adds" or new bundles randomly but want to make feel the player like it's something natural. Find what your audience care the most and balance the monetization with that in mind. You want to give them the best value so understanding the players' behavior is key for having a balanced monetization strategy.

Understanding your competition is crucial in shaping your monetization strategy. By analyzing similar games, you can identify which business models resonate with your target audience. For instance, if competitors in your genre are thriving with IAPs, it might indicate a player tolerance or preference for this model. Additionally, assessing the presence of players who spend significantly more than averagecan inform your strategy to cater to or attract such individuals, potentially increasing your game's revenue significantly. Always align these insights with your game's value proposition and player experience to ensure a cohesive and engaging monetization approach.

Dive deep into understanding your audience, but don't stop there. Explore User Archetypes to tailor the best possible experiences, catering to the varied expectations of different user groups. Understanding that your game meets a variety of player expectations is a crucial foundation for developing monetization strategy.

Keep it simple, never pay to win. Make sure that any monetization is either cosmetic or a time saver, but doesn't ever give the player an unfair advantage over others.

Communicate the value proposition of your game to players. Offer compelling reasons for players to spend money, such as access to exclusive content, enhanced gameplay features, or time-saving conveniences. Ensure that the benefits of monetization are aligned with player interests and preferences. Consider offering subscription-based monetization options, such as premium memberships or season passes, that provide ongoing benefits and rewards to subscribers. Subscription models can foster long-term player engagement and recurring revenue streams.

In games, balancing value and cost means creating a system where players feel like they're getting what they pay for, whether it's with real money or time spent playing. This can involve things like setting fair prices for in-game items, making sure players earn rewards at a good pace, and offering different ways to progress without spending money. The goal is to keep the game fun and engaging for everyone, while also making sure the game is sustainable for the developer.

This principle ensures that players feel they are receiving fair value for any money spent, whether through in-game purchases, subscriptions, or initial game cost. Providing players with meaningful, satisfying content that enhances their gaming experience without feeling forced or pay-to-win is a North Star. This balance encourages player engagement and willingness to spend, fostering a positive player perception of the monetization model. Effectively balancing value and cost not only drives revenue but also builds trust and loyalty among the player base, contributing to the game's long-term success and sustainability. Ensuring that players feel rewarded and valued is key to a successful monetization strategy.

Balancing the value and cost within your game is pivotal for player engagement and retention. Implementing an exponential progression system where challenges and rewards scale significantly can keep players invested, offering a sense of accomplishment and progress. As players advance, increasing the difficulty and value of rewards maintains engagement and presents a satisfying challenge. Diversifying the avenues through which players can earn rewards in later stages introduces complexity and depth to the game's economy, encouraging exploration and strategic thinking.

Understanding what players value—be it competition, collaboration, or solo achievements—is essential in crafting a game that resonates with them. Employing A/B testing can be an effective method to discern which features or rewards increase player engagement, allowing you to iteratively refine your game's elements based on data-driven insights. Leveraging social listening can provide a wealth of information on player preferences and emerging trends, enabling you to tailor your game's features and events to meet player desires. By maintaining a healthy mix of player-driven feedback and your strategic goals, you can create a dynamic gaming experience that evolves with its audience, ensuring sustained interest and a vibrant player community.

I've stressed the importance of matching player rewards with game objectives to boost revenue frequently in consulting sessions. For instance, we focused on improving a free-to-play mobile game's money-making approach in a recent project. By understanding what motivates players, we carefully aligned rewards like virtual cash and unique items with game goals, such as completing missions or topping leaderboards. We added daily challenges and time-limited events to keep players engaged and encourage them to spend in-game. Most importantly, reviewing player feedback all the time allowed us to fine-tune the balance between rewards and goals, significantly improving player retention and revenue generation.

A critical metric to focus on is the first session duration during player onboarding. A longer first session correlates with higher conversion rates, indicating that players who are more engaged initially are more likely to make purchases or continue playing. Provide players with compelling activities each day to encourage regular interaction with your game. Analyze game data to identify which mechanics, levels, or stages are causing players to churn and what motivates them to continue. This insight allows you to adjust your game's features to maximize player retention and satisfaction. By continuously monitoring, analyzing, and iterating, you can craft a monetization model that resonates with your audience and drives your game's success.

You must understand the player's journey. How long is the average session, where are players churning, and where are players hitting difficulty spikes. How long or far do they play without a purchase? Data can provide this info. A-B test different ideas. For example, in A, after a player fails a level X times, give them a free bundle of boosters. In B, after a player fails a level X times, offer them a discounted bundle of boosters. In A and B, you teach the player about IAP. Converting a non-payer will be more likely if the perceived value is higher. You may find one group is more likely to convert than the other group over a period of time. Utilizing data this way can help provide a clearer direction or validate a hypothesis.

General tips here are fine, I'll note something more specific: session time is genre-driven, but overall leisure time isn't. Designing both short and term content has to fit within the player's allocated hours. The game funnel and how much time not spent in game can work against you for retention if the core loop takes too long or has too many interruptions to finish. Introducing the fun into the funnel early helps the loop finish easier.

The foremost and widely embraced principle of monetization is to sell time, not advantage. Beyond this, there are numerous factors to consider. Initially, it's crucial to define your business model, determining your revenue goals and how these objectives might evolve as the game develops. Subsequently, adjust the game's economy and progression to align with this model. Remember, monetization design is an ongoing journey, requiring continuous refinements, whether it's tweaking Ads strategies or enhancing IAPs.

Don’t sell the cow. Sell projects. The cow: rewards and results of gameplay or time. This is what players would engage with your game to get. If you sell it directly, you lose players engagement and consequently retention and monetization. Projects : think battle pass. Why does it work so well for KPIs? Players monetize upfront for a project they will engage and return for over a longer period of time. Compulsion loops explain that with dopamine coming from the anticipation of the project. Not the reward moment but the moment you think about a motivating project with a desirable outcome. This is what you should sell. (Not just as battle passes) But don’t sell the core of your game, or they won’t be anyone there to want more projects.