The document discusses various revenue models that mobile game developers can use to monetize their games, including selling games upfront, using advertisements, subscriptions, in-app purchases, advergames, and free-to-play games. It provides examples of successful games that have used each model and outlines the pros and cons of each approach. The models range from one-time payments to recurring revenue streams from areas like in-app purchases or subscriptions.

1. Mobile Games Revenue
Models!
Thiago Paiva!
!
Blog: http://startupbizmodel.com!
Twitter: @ThiagoPaiva!

2. Introduction!
Today,
smartphones
are
a
great
way
to
play
games
like
Angry
Birds
and
Zombie
vs
Plants.
These
casual
games
are
easier
to
be
done,
which
allow
independent
developers
to
make
their
own
games
too.
But
they
usually
don’t
know
very
well
about
the
revenue
models
they
can
use
to
mone?ze
their
games.
That’s
way
I
had
the
idea
of
doing
this
presenta?on.
Here
I
will
present
the
most
common
revenue
models
for
mobile
games,
explain
a
liEle
bit
about
their
pros/cons
and
give
some
examples.

3. Selling Games!
This
is
the
most
common
way
games
developer
uses
to
earn
money,
because
it’s
the
easiest
one
and
have
good
results.
Good:
Easiest
model
to
use
and
users
are
very
familiar
with.
Cut
the
Rope,
Angry
Birds
and
Zombie
vs
Plants
are
successful
example
of
Bad:
games
that
used
game
selling.
One
?me
revenue,
hard
to
define
prices
and
less
users
Best
alterna?ve
to
new
game
then
free
to
play
games.
developers.
The
only
difficult
here
is
to
define
best
price
to
sell
the
game.

4. Startup Biz Model – Brazilian Startups Business Model
www.startupbizmodel.com
Awesome Brazilian Startups Business Model Analysis
Advertisement!
Other
simple
form
to
earn
money
with
games
is
using
ads
inside
games.
We
have
3
different
approaches
to
that:
Best,
Fun
&
Cool
Games
uses
preEy
well
cross-­‐ads
games
to
promote
their
• Nego?ate
directly
with
third-­‐ best
games,
Bunny
Shooter
is
an
party
to
put
their
ads.
example,
that
they
used
cross-­‐ads
to
• Nego?ate
with
an
ad
network
lead
to
it
and
them
mone?ze
it
with
to
put
ads.
ads
they
nego?ate
directly.
• Use
cross-­‐ads
games
in
poor
or
old
games
to
promote
one
iAds
is
an
ad
network
that
makes
it
that
can
be
mone?ze
more.
easier
to
put
ads
in
games.
Good:
Bad:
Users
aren’t
charge
for
this
and
Less
money
per
user,
need
great
user
allow
apps
to
be
free.
base
to
make
good
money.

5. Subscription!
In
the
subscrip?on
model,
users
pay
a
fee
per
month
(usually)
to
play.
The
good
thing
about
this
model
is
that
provide
recurring
revenue,
instead
of
a
one
?me
selling
a
game,
but
you
need
to
keep
developing
for
this
game
so
Two
good
examples
of
subscrip?on
users
always
find
something
new
models
are
the
MMO
RPG
Order
&
that
makes
them
want
play
more.
Chaos
and
the
game
portal
Big
Fish
Games,
both
you
have
to
pay
for
month
Good:
to
use
them.
Recurring
revenue.
This
model
is
beEer
used
in
MMO
RPGs,
Bad:
but
can
be
used
in
in
others
as
social
Need
to
be
updated
frequently
games
too.
and
is
difficult
to
manage
it.

6. In-App Purchases!
This
is
model
is
proving
to
be
one
of
the
most
successful
models
for
mobile
games.
Usually,
game
is
a
free-­‐to-­‐play
game
that
sells
virtual
This
model
is
especially
good
for
social
goods
to
let
users
accelerate
things,
games
like
Farm
Ville,
Smurfs,
BaBle
get
more
money
or
buy
special
NaDons
and
Snoopy’s
Fair.
Where
there
is
thing.
a
compe??on
between
the
users
and
they
can
buy
stuffs
to
get
beEer
than
their
Good:
friends
faster.
Allow
users
to
spend
as
much
as
they
want
in
these
games.
This
model
is
an
applica?on
of
the
Freemium
model
studied
by
Chris
Bad:
Anderson.
It’s
difficult
to
use
in
a
good
way,
need
strategy
and
constant
updates.
Only
a
small
percentage
of
users
will
pay
for
this.
Free,
by
Chris
Anderson:
Introduces
the
freemium
model

7. Advergames!
This
model
is
different
from
others,
because
the
game
is
made
to
a
specific
adver?sement
campaign
of
a
company.
Good:
Games
are
more
simple
to
be
Sprite
City
and
Pepsi
Twist
Shot
are
made
and
game
devs
don’t
run
some
examples
of
advergames.
all
the
success/failure
risk
of
Usually,
these
games
are
directed
to
games
kids
and
teenagers.
Bad:
Games
devs
don’t
run
all
the
Ow,
Yeah!
success/failure
risk
of
games

8. Free Games!
This
may
look
like
a
bad
idea
but
is
very
handy.
Game
devs
use
free
version
of
games
to
promote
the
paid
version,
use
free
games
just
to
promote
themselves
or
in
combina?on
with
other
revenue
model.
Angry
Birds
Free
and
Cut
the
Rope
Good:
Lite
are
examples
of
free
games
to
It’s
nice
and
cheap
marke?ng
promote
their
paid
version.
tool
to
promote
games
and
makes
it
easier
to
get
a
large
Free-­‐to-­‐play
games
are
been
very
base
of
users.
successful,
because
thei
create
a
large
users
base
and
mone?ze
it
Bad:
selling
virtual
goods
Have
to
think
carefully
to
not
cannibalize
your
paid
game
or
other
revenue
sources.

9. Sell Real Products!
This
model
is
based
in
make
products
around
your
game
and
sell
it,
plush
toys
are
the
most
common
example.
With
this
you
can
increase
the
bound
your
You
can
create
almost
anything
users
have
with
your
game
and
around
your
game
to
sell,
that
goes
earn
some
extra
money
with
from
plush
toys
to
shirts
and
even
that.
pen
drives.
But
your
game
needs
to
be
a
hit
for
this
be
a
good
op?on.
Good:
Increase
users
bound
with
the
Some
examples
are
Angry
Birds,
game
and
is
another
source
of
Fruit
Ninja
and
Cut
the
Rope.
revenue
besides
game
itself.
A
good
way
to
do
this
is
licensing
to
others
companies
sell
the
products.
Bad:
Need
users
to
be
fans
of
the
game
to
buy
and
need
a
large
quan?ty
to
worth
it.

10. Using Multiples Models !
As
you
can
image,
you
can
(and
probably
will)
use
more
than
one
revenue
model.
Bellow
there
are
some
strategies
to
combine
them:
Free Game + Ads! This
is
a
good
combina?on
to
earn
money
both
ways,
using
a
limited
free
version
to
let
people
try
your
game
Selling Game! but
s?ll
mone?zing
them
with
ads
and
if
they
like
it
sell
the
game.
In-App A
nice
combina?on
to
have
a
good
number
of
users
and
Purchases! mone?ze
them
in
two
ways:
Selling
premium
op?ons
(ex.
+
Virtual
goods)
and
ads.
This
way
you
mone?ze
even
the
Ads! user
that
don’t
buy
premium
op?ons
Selling Games! This
combina?on
is
a
selling
game
and
use
in-­‐app
+
purchases
to
sell
virtual
goods
to
maximize
the
game
In-App revenue.
Angry
Birds
use
this,
if
you’re
stuck
in
a
level,
Purchases! you
may
pay
US$
0.99
to
pass
this
level.

11. A little Example!
Angry
Birds
is
a
great
example
on
how
to
use
different
revenue
models
combine.
They
have
2
apps
in
Android
Marketplace
and
2
in
App
Store
with
different
strategies:
Free Version + Ads !
Selling Game + Virtual Goods!
Free + Ads + Virtual Goods!
Selling Game + Virtual Goods!
Angry Birds Store - Sell
Real Products !
(Shirts, Plush Toys, Pen
Drives, Bags…)!

12. App Stores!
Is
good
to
remember
that
different
app
stores
need
different
strategies
to
maximize
a
game
revenue.
Here
are
the
5
most
important
apps
stores:
Blackberry! iOS! Android! Windows! Nokia!
You
should
think
carefully
before
developing
a
game
which
one
app
store
is
beEer
for
your
game,
maybe
is
not
the
best
op?on
to
develop
a
social
game
to
Blackberry
plaform
but
could
be
an
awesome
opportunity
to
develop
a
casual
game.