How to Choose the Best Game Monetisation Strategy for Your Game

You’ve finally accomplished your game. Congratulations! 

But that is only half the battle. The other half is figuring out how to turn that game into a profitable venture. This is where choosing the right game monetisation strategy becomes critical. The selected approach will influence your game’s revenue, player satisfaction, and long-term success. However, with so many monetisation options available today, deciding which one fits your game best can feel overwhelming.

Do not fret, this blog will guide you through the most common game monetisation models, explain the key factors you need to consider, and provide actionable advice so you can confidently select the strategy that aligns with your game and your audience.

Why the Right Game Monetisation Strategy Is Essential

Before we explore specific models, it’s important to understand why this decision is so impactful.

Impact on Player Experience

Monetisation is not just about making money, it directly affects how players feel about your game. If your monetisation feels intrusive, unfair, or even overly aggressive, players will become frustrated and abandon the game. On the other hand, a well-integrated monetisation system can enhance the experience by offering meaningful choices and rewards.

For example, forcing players to watch ads every few minutes can disrupt immersion, while offering optional cosmetic purchases allows players to personalise their experience without pressure. Striking the right balance ensures players remain engaged and willing to spend.

Influence on Revenue Generation

Different monetisation models generate revenue in different ways. Some provide immediate income through upfront purchases, while others build steady, recurring revenue over time. Your choice will affect not only how much money you make but also when and how consistently that money arrives.

For instance, a paid game might earn a large amount initially but taper off quickly, whereas a subscription model can provide a predictable monthly income if you maintain player interest.

Effect on Player Retention and Game Longevity

Monetisation can either encourage players to stay longer or push them away. Models that reward ongoing engagement, like battle passes or subscriptions, incentivise players to return regularly. Conversely, aggressive monetisation can shorten the lifespan of your game by driving players away.

Choosing a strategy that supports your game’s design and player behavior is key to sustaining a healthy player base.

Shaping Your Market Position and Brand

Your monetisation approach also communicates your values as a developer. A fair, player-first strategy builds trust and a positive reputation, which can lead to stronger community support and word-of-mouth marketing. Conversely, exploitative or confusing monetisation can damage your brand and make future projects harder to launch.

Overview of Popular Game Monetisation Models

There are several monetisation models commonly used in the gaming industry, each with its own strengths and challenges. Let’s examine them in detail.

1. In-Game Purchases (Microtransactions)

In-game purchases, often called microtransactions, allow players to buy virtual goods or currency within the game. These can include cosmetic items like character skins, functional items like power-ups, or consumables such as extra lives.

How It Works

Players download and play the game for free or after an initial purchase, then have the option to spend real money on items that enhance or personalise their experience. These purchases are usually small, ranging from a few cents to several dollars, encouraging frequent spending.

Why This Model Is Popular

Microtransactions have become the dominant monetisation method in mobile and free-to-play games because they lower the entry barrier—players can try the game without paying upfront—and allow developers to monetise a large player base over time.

Key Considerations

• Avoiding Pay-to-Win: One of the biggest risks with in-game purchases is creating an unfair advantage for paying players. If players feel that spending money is necessary to compete or progress, non-paying users may quit. To prevent this, many successful games restrict purchases to cosmetic or convenience items that do not affect gameplay balance.

• Pricing Strategy: Offering a range of price points helps capture different spending habits. Some players prefer small, frequent purchases, while others might invest in larger bundles. Careful pricing can maximise revenue without alienating players.

• Content Updates: To keep players spending, developers need to regularly add new items or features. Stale content can lead to decreased purchases over time.

• User Interface: The purchase process must be smooth and secure, with clear information about what is being bought.

Example

Games like Fortnite and Clash of Clans use microtransactions effectively by offering a wide variety of skins and upgrades that do not impact competitive fairness.

2. In-Game Advertising

In-game advertising involves displaying ads within the game environment. This can take several forms: banner ads, interstitial ads (full-screen ads between game levels), and rewarded video ads where players watch an ad in exchange for in-game rewards.

How It Works

Ads are typically served through ad networks and can be targeted based on player demographics and behavior. Rewarded ads are popular because they offer players a choice—watch an ad to earn bonuses like extra lives or currency.

Benefits

• Free Access: Ads allow games to be completely free, attracting a broad audience.

• Passive Revenue: Developers earn money based on impressions (views) or clicks without requiring players to spend money directly.

Challenges

• Player Disruption: Ads can interrupt gameplay or annoy players if overused or poorly placed. This can lead to negative reviews or uninstalls.

• Ad Fatigue: Players may become tired of seeing ads frequently, reducing their effectiveness.

• Demographic Suitability: Some player segments are more tolerant of ads than others. For example, casual mobile gamers may accept ads more readily than hardcore gamers.

Best Practices

• Use rewarded ads sparingly and ensure rewards are meaningful.

• Avoid placing ads at critical gameplay moments.

• Test different ad formats and frequencies to find the right balance.

Example

Many casual mobile games, such as Candy Crush Saga, use rewarded ads to give players extra moves or bonuses, increasing engagement while generating revenue.

3. Subscription Model

Subscriptions charge players a recurring fee to access premium content, features, or an ad-free experience. This model is similar to services like Netflix but applied to games.

How It Works

Players pay weekly, monthly, or yearly fees. In return, they receive perks such as exclusive items, early access to new content, or removal of ads.

Advantages

• Predictable Income: Subscriptions provide steady, recurring revenue, making financial planning easier.

• Player Loyalty: Paying subscribers are often more engaged and invested in the game.

Requirements

• Regular Content Updates: To justify ongoing payments, developers must continuously add new content or features. Without fresh updates, players may cancel their subscriptions.

• Community Building: Subscriptions work best when there is a strong player community or multiplayer features that encourage social interaction.

Challenges

• Convincing players to commit to a recurring fee can be difficult, especially in competitive markets.

• Pricing must reflect the value offered, or players will not see the subscription as worthwhile.

Example

Games like World of Warcraft have successfully used subscriptions to support a large, active player base with ongoing content.

4. Freemium Model

Freemium games are free to download and play but offer optional purchases that enhance the experience. This model combines free access with monetisation through upgrades or additional content.

How It Works

Players can enjoy the core game without paying, but may choose to buy items, levels, or features that improve gameplay or aesthetics.

Benefits

• Large Player Base: Free entry attracts many players, increasing the potential pool of paying users.

• Flexibility: Players can decide how much to spend, if at all.

Considerations

• Balance: Free players should still have a satisfying experience. If the game feels too limited without purchases, players may quit.

• Value of Purchases: Paid items must offer meaningful benefits without breaking fairness.

• Conversion Rate: Typically, only a small percentage of players make purchases, so the game must attract a large audience.

Example

Pokemon GO is a classic freemium game where players can play for free but have the option to buy items that help with gameplay.

5. Paid Games with In-App Purchases

This hybrid model requires players to pay upfront to download the game but also offers optional purchases inside the game.

How It Works

Players buy the game once and can then choose to spend more on additional content, expansions, or cosmetic items.

Advantages

• Upfront Revenue: Generates immediate income from sales.

• Ongoing Monetisation: Additional purchases extend revenue beyond the initial sale.

Challenges

• Higher Entry Barrier: The initial cost may reduce the number of downloads.

• Content Expectations: Players expect a complete experience for their purchase, so in-app purchases should enhance rather than complete the game.

Example

Many premium mobile games, like Monument Valley, use this model, offering a polished experience with optional extras.

6. Battle Pass / Season Pass

Battle passes offer players a tiered reward system that unlocks over a season or period. Players buy the pass and earn rewards by playing the game and completing challenges.

How It Works

Players purchase the pass and progress through levels by playing. Each level unlocks rewards such as skins, currency, or exclusive content.

Benefits

• Encourages Regular Play: Players are motivated to log in frequently to complete challenges.

• Predictable Revenue: Seasonal passes generate recurring income tied to content updates.

Requirements

• Content Creation: Developers must produce new challenges and rewards each season.

• Clear Communication: Players need to understand the pass’s value and progression system.

Example

Fortnite popularised the battle pass system, combining progression with exclusive cosmetic rewards.

7. Sponsorships and Brand Partnerships

In this model, brands pay to have their products or logos featured in your game, either integrated into the environment or through special events.

How It Works

Developers collaborate with brands to place advertisements or branded content in ways that fit naturally within the game.

Advantages

• Non-Intrusive Revenue: Players do not pay or see traditional ads, preserving immersion.

• Additional Content: Partnerships can bring unique events or items.

Challenges

• Audience Fit: The brand must align with your game’s theme and player base.

• Player Perception: Over-commercialisation can harm the game’s reputation.

Example

Racing games often feature real-world car brands as sponsors, adding authenticity and generating revenue.