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Games from big studios like Microsoft can cost millions of dollars. Most indie game development doesn’t come with such a lofty budget. How can small studios and independent developers compete with these massive titles? Effectively monetizing your indie games is one way to narrow the gap.
Key Takeaways:
Independent developers, rather than large studios, create independent games. Popular indie games include Minecraft, Undertale, Stardew Valley, The Binding of Isaac, and Hollow Knight.
Indie developers typically don’t have as much money and other resources to develop their games as big publishers. However, they tend to have more creative freedom and more control over their working environment.
Because indie developers usually don’t have the same name recognition as large studios, they must be more creative and thoughtful about monetizing games. Players are generally less willing to spend money on smaller, lesser-known titles than on the latest sequel to a massive hit. However, with the right mix of these monetization strategies, you can achieve financial success.
Does your game offer something players can’t get anywhere else? Is it the sort of game players will want to play again and again for months or even years to come?
If so, you may be able to charge a one-time download fee to install the game. This monetization strategy provides a stable revenue stream with high-income potential and doesn’t require the same amount of ongoing maintenance as other monetization strategies.
Charging a download fee increases the perceived value of your game because players tend to think a game they must pay money for is better than a game they can get for free. However, this strategy can be high risk.
Many players will not pay for a game they can’t try first, and there are many free games available. Additionally, early negative reviews can bury your game before it gets a chance to gain traction. To succeed with this strategy, you must build early buzz and provide a pristine product that offers a highly engaging and unique experience that players and reviewers will tell other people is worth paying for.
Instead of a one-time fee, subscription models rely on regular recurring payments, usually every month. This method of monetizing indie game development works best with games that provide a steady stream of new content.
Subscriptions provide a predictable, stable revenue source that helps fund ongoing development. Subscription services can foster community building because you can offer subscriber-only access to special areas and events.
However, many players won’t subscribe. You can address this issue by offering paid and non-paid tiers so that players can see what your game offers and then upgrade to a subscription once they’re hooked on the game.
Because you must keep adding new content and engaging with the player base to keep subscribers, you won’t be able to devote all of your revenue to new development. Additionally, you will need to maintain a dedicated team to provide ongoing support or pay for third-party help with live ops and other functions.
Microtransactions are small purchases players make for additional content, such as in-game items, skins, power-ups, and cosmetic upgrades. Some developers also sell the right for players to sell their user-generated content through microtransactions.
Microtransactions are one of the most popular ways to monetize free-to-play games. This strategy allows you to generate revenue without charging players an upfront fee.
To succeed with microtransactions, you must provide a steady stream of content that players want to purchase. You must also keep your player base highly engaged and avoid pitfalls, such as creating a perception that players must make purchases to enjoy your game.
Some games generate substantial revenue through microtransactions, but even when done well, some players will never buy anything. You must also dedicate substantial resources to provide the frequent updates necessary to retain players and keep them engaged with your game.
In-game ads are videos, images, or advergames that advertise a product or service that appears somewhere within a game. Though some players find ads annoying, many players prefer to “pay” for games by viewing ads.
In-game ads are one of the best ways to monetize players who will not purchase anything in your game. However, ads can distract from gameplay and if they are too disruptive, they may cause churn.
Indie game developers should place ads thoughtfully so that they convert well but aren’t too frequent or disruptive. Developers may find rewarded ads and advergames work best because players get something out of interacting with these types of ads.
The downside of relying too much on ads is that it isn’t a guaranteed revenue source. Players may not interact with the ads, and advertisers may not be willing to pay as much to advertise in an indie game because of the smaller audience.
The popularity of eSports makes hosting tournaments a potential source of high revenue. However, building interest in your game takes time. Additionally, there are significant upfront costs involved in hosting tournaments.
If you succeed in making your game popular in the eSports world, you will likely see more players playing your game in the hopes of competing or because they saw professional gamers streaming your content. However, the boost may only be temporary because what is popular changes relatively quickly.
To succeed in eSports, you must build a community of highly skilled players. You can increase your odds by reaching out to popular eSports competitors and gaming influencers.
Finding the right mix of monetization methods can be challenging. The experts at Sonamine can give you a leg up on the competition. We will work with your indie game development team to find the best ways to engage and retain your players while implementing a monetization strategy that will help you meet your goals. Contact us today to get started.
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For a limited time until Sep 2024, Sonamine is offering a 60 day money back guarantee to Braze customers. Come experience the ease and simplicity of the First Time Spender Nudge package and watch your conversions soar.
