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The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases
The Power Of In-App Purchases

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Editor's Notes

  1. What? Business? I’m usually giving hard-core tech talks! :-)
  2. So, why me? I created Flower Garden for iPhone and iPad It’s been out a year and a half!
  3. Also created the Lorax Garden although that’s not very relevant because it had no IAPs
  4. Flower Garden has lots of IAPs, so that’s where I’m going to be drawing a lot of the info for this talk
  5. And Casey’s Contraptions, my next game (along with Miguel Angel), it’s also going to have IAPs, of course. This is about IAPs in general. I'll probably say "game" all the time though :-)
  6. Paid + IAP can be a tough pill to swallow. Easier if added after launch.
  7. Paid + IAP can be a tough pill to swallow. Easier if added after launch.
  8. Paid + IAP can be a tough pill to swallow. Easier if added after launch.
  9. Two versions of Flower Garden (for historical reasons) IAPs available in all of them
  10. Two versions of Flower Garden (for historical reasons) IAPs available in all of them
  11. Two versions of Flower Garden (for historical reasons) IAPs available in all of them
  12. Most revenue from IAPs That’s 82% from IAP! And that’s after giving people a slight discount for the full version ($2 for $3)
  13. Some users balk at IAPs. They feel they're missing out if they don't buy things or that you'll nickel and dime them
  14. Remember that's a very vocal minority. Lots of people don't mind.
  15. Most importantly, sell content people want
  16. I’m making this up based on App Store observations and talking to other developers. No hard data to compare.
  17. - It’s like insert coin in the arcades - Not great sellers - People feel very ripped off usually - Not a huge draw, although at least they’re consumables
  18. - It’s like insert coin in the arcades - Not great sellers - People feel very ripped off usually - Not a huge draw, although at least they’re consumables
  19. Extra levels by themselves better, but not a huge draw Again, lots of people resent this because they feel they’re missing out Works well with music games though (music is different than levels?) Pretty cheap to make
  20. Extra levels by themselves better, but not a huge draw Again, lots of people resent this because they feel they’re missing out Works well with music games though (music is different than levels?) Pretty cheap to make
  21. In game currency can be somewhat mixed The more removed it is from real gold/coins the better Otherwise lots of people will find it very materialistic
  22. In game currency can be somewhat mixed The more removed it is from real gold/coins the better Otherwise lots of people will find it very materialistic
  23. In game currency can be somewhat mixed The more removed it is from real gold/coins the better Otherwise lots of people will find it very materialistic
  24. Purely optional content has less of a backlash Skins worked very well for Scoops (made more money as free with IAP skins than paid). And it was successful!
  25. Different characters also feels totally optional Very popular and people react well to it
  26. Different characters also feels totally optional Very popular and people react well to it
  27. New game items - They change the game, but they don’t make people feel they’re missing a lot - TODO: More games
  28. Extra content that you can show off to other people can be very popular Anything with customization Doesn’t even need to have a purpose, just be different TODO: Track down Russian company that makes one big sale per month
  29. Extra content that you can show off to other people can be very popular Anything with customization Doesn’t even need to have a purpose, just be different TODO: Track down Russian company that makes one big sale per month
  30. Money for time is the most popular type of IAP If only we could do this in real life!!
  31. Money for time is the most popular type of IAP If only we could do this in real life!!
  32. Consider selling one purchase that includes everything Not many games do this I considered doing it with Flower Garden, but it’s tough once you have established players
  33. Sell to remove ads Tricky: Need to balance IAP revenue vs. ad revenue lost vs. player annoyance at ads Actually getting $0.99 is almost always better than ad revenue, so that’s an immediate win. Do it!
  34. Charts and Apple features main way to get visibility today
  35. Remember when that was a big deal? Now we have 300,000!!
  36. This is one of the greatest strengths of IAPs: You can reach your users bypassing the clutter of the App Store
  37. Having IAPs allows you to release new content and target your users That’s also true of releasing new games and announcing it in your exiting ones, but the percentage of users doing the switch over will be smaller and it has the risk of feeling too much like ads IAP minimizes friction for users to buy new content
  38. In game news
  39. In game news
  40. Update text Links are even clickable! (they aren’t in the App Store description)
  41. Offline - Do everything you can to get some contact (FB, email, etc) - Facebook - Mailing list
  42. Offline - Do everything you can to get some contact (FB, email, etc) - Facebook - Mailing list
  43. Don’t hide them out of the way Badge whenever there’s something new
  44. Give users a nudge whenever they could get IAP content (end of level, etc) Don’t make it too nagging or obnoxious though
  45. IAP bundles are very popular And for a reason!
  46. Having a few options, makes the consumer more likely to buy
  47. Having too many has the opposite effect
  48. People like to get a good deal
  49. Bundles also represent an investment in your game
  50. That means that users will keep coming back to your game and they’ll play it some more
  51. It also means that your app will get more exposure and has a chance to spread more
  52. Clearly PF is doing a great job of getting people to buy the big bundles. I’m planning on running some experiments with Flower Garden to optimize revenue.
  53. This is the key concept of this talk!
  54. Games have traditionally been one size fits all There’s a price, you buy it or not Same with a lot of apps
  55. An app for $4. It’s binary, people either buy it for that price or not The way to make more money is to have a more people interested in buying it
  56. An app for $4. It’s binary, people either buy it for that price or not The way to make more money is to have a more people interested in buying it
  57. An app for $4. It’s binary, people either buy it for that price or not The way to make more money is to have a more people interested in buying it
  58. An app for $4. It’s binary, people either buy it for that price or not The way to make more money is to have a more people interested in buying it
  59. An app for $4. It’s binary, people either buy it for that price or not The way to make more money is to have a more people interested in buying it
  60. Trent Reznor in 2009
  61. Quick aside: Merchandising is usually not a great money maker. It can help with getting the brand out there, but the amount of money you’ll make from it is dwarfed by the game revenue. Even if you put a sexy picture of you on your store like this :-)
  62. Need to have multiple IAPs to scale well
  63. Need to have multiple IAPs to scale well
  64. Need to have multiple IAPs to scale well
  65. Need to have multiple IAPs to scale well
  66. Need to have multiple IAPs to scale well
  67. For some large social apps
  68. For some large social apps
  69. Rumor of a single user spending $10K+ on an ngmoco game (wasn’t able to track down reference)
  70. How do you do that? Lots of IAPs, or even better, consumables!
  71. Revenue now depends not just on users who buy your game/app but on the amount that use it every day
  72. Revenue now depends not just on users who buy your game/app but on the amount that use it every day
  73. Revenue now depends not just on users who buy your game/app but on the amount that use it every day
  74. Revenue now depends not just on users who buy your game/app but on the amount that use it every day
  75. Still, results are representative
  76. Still, results are representative
  77. Still, results are representative
  78. Still, results are representative
  79. Textbook power curve!
  80. Remember him?
  81. Extremely!
  82. Extremely!
  83. Extremely!
  84. Percentage of users that spend some money in a free game/app
  85. Rereading Masters of Doom Any idea what that game is? What do these games have in common? Commander Keen and Wolfenstein. Shareware model. Very similar (free + paid upgrades). Usual 1-2% conversion rate
  86. Rereading Masters of Doom Any idea what that game is? What do these games have in common? Commander Keen and Wolfenstein. Shareware model. Very similar (free + paid upgrades). Usual 1-2% conversion rate
  87. Rereading Masters of Doom Any idea what that game is? What do these games have in common? Commander Keen and Wolfenstein. Shareware model. Very similar (free + paid upgrades). Usual 1-2% conversion rate
  88. Of doing just one app and going free with IAP
  89. Of doing just one app and going free with IAP
  90. Of doing just one app and going free with IAP