Just a few days ago, I read an article about how to make money with a mobile app. It inspired me to give a lecture to first-year game development students at EDIB on this topic. I explained the different ways to generate revenue with a game that exist today.
The students left the class very motivated, because the lesson changed how they think when playing games. The experience was so positive that I decided to write this article and share that knowledge with all of you.
Different Ways to Make Money with a Game
1. Selling the Game
This is the traditional way to earn revenue from a game, and one we all know. Regardless of the distribution method, whether physical or digital, the concept stays the same: a “product in a box.” The advantages of this model include a simple approach where you launch the product and move on. In fact, 80% of revenue comes within the first three months after launch. On the other hand, you need a strong marketing and communication strategy for launch day. You must also have the game 100% developed and bug-free. Moreover, with more free games appearing on the market every day, earning money this way has become quite difficult.
2. Subscription
The subscription method originated in Asia as a response to piracy. This way, users pay a recurring fee to access the game. The most well-known example is World of Warcraft with its monthly subscription. The main advantage is that it generates predictable, recurring revenue. However, the barrier to entry is high because users must commit to paying before they can try the game. As a result, many modern games have shifted to hybrid models that combine subscriptions with free-to-play elements.
3. Freemium (Virtual Goods)
The freemium model allows users to play for free while offering virtual goods for purchase within the game. These items can be cosmetic (skins, outfits) or functional (power-ups, extra lives). This approach removes the entry barrier entirely, enabling massive user acquisition. The key challenge involves designing a balanced economy. You must offer enough value in free gameplay to retain users while creating compelling reasons to spend money. Games like Candy Crush and League of Legends have mastered this model with great success.
Advanced Monetization Strategies
4. Pay to Win
Similar to freemium, the pay-to-win model goes a step further. Players who spend money gain a competitive advantage over those who do not. While this approach can generate significant revenue, it often damages the player community. Non-paying users may feel frustrated and leave the game. Therefore, developers must balance monetization with fair gameplay to maintain a healthy player base. Despite its controversy, this model remains profitable in certain markets, especially in Asia.
5. Gambling
By “gambling,” I refer to games where users can win real prizes or money through cash-out features. These games typically involve skill and chance, and local laws regulate them. This means you need a license to operate depending on the country. Today, much discussion centers on the convergence between Social Casino and Gambling. The difference between them is clear: social casino games focus on entertainment, while gambling games involve real money. Several countries have recently legalized online gambling, which explains the growing number of casino advertisements we see.
6. Advertising
Another way to generate revenue involves displaying ads within our games in various formats such as CPM, CPC, and CPV. This method is not recommended as the primary revenue source. Instead, it works best as a complement to other monetization strategies. The main advantage is that it does not require users to spend any money. However, excessive or intrusive advertising can hurt the user experience and drive players away. Successful implementation requires finding the right balance between ad frequency and gameplay enjoyment.
7. Licensing and Merchandising
If your game achieves significant popularity, licensing and merchandising open additional revenue streams. You can license your characters and brand to third parties for products like toys, clothing, or media adaptations. This strategy works particularly well for games with strong intellectual property and recognizable characters. Although it requires an established and popular game, the revenue potential is enormous when executed correctly.
8. Hybrid Models
In practice, most successful games today combine several of the monetization methods described above. A game might offer a free-to-play base with virtual goods, advertising for non-paying users, and premium subscriptions for dedicated players. The key to success lies in understanding your audience and adapting your monetization strategy accordingly. Each market and demographic responds differently to these models. Therefore, testing and iterating on your approach remains essential for maximizing revenue while keeping players engaged and satisfied.