Mobile Games, Profit off the Few

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Swrve uncovered that just 1.9 per cent of all mobile gamers paid for content. Of those, 64 per cent made just one purchase and only 6.5 per cent made five or more. Additionally, half of their revenue arises from one-hundredth (0.19 percent of all mobile users) of the people that pay for content. So to create revenue from online games, you must sell your product on install. The wrong way to profit is to keep selling past the install. “Keep selling after the install. It’s a mistake to believe that the user who installs has already been ‘sold’ on your game,” was the advice offered by Swrve’s VP of marketing Tom Farrell.
High spenders shell out $24.33 a month, which is up from $22 a year ago. That money is typically spread across 1.8 purchases. 2.5 per cent of all purchases are now over $50 in value – and these big buys account for 17 per cent of all mobile games revenue. This shows that the high spenders aren’t making lots of purchases, but they are spending money to buy the games and maybe make an additional purchase or two.

How to Profit with Freemium Games:

If you decide to put out a game with no purchase cost, “… you should take time during the initial experience to remind users why they downloaded and are playing your game.” You need to find a way to attract users that are willing to make a one-time purchase.

Please Watch the south park episode on freemium games and addiction. The episode is both hilarious and reveals the parasitic nature of gambling/gaming establishments that prey on the weak.

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