How to Make Money with Games

This article will give you a high level strategy about how games make money, including ours. I’ll touch base in some key aspects that impact your game’s ability to make money.

Defining your demographic:
No game can make money without users. Also, no game can make money without the RIGHT users, so get to know your target demographics upfront as it will impact many key points of your gameplay and art. Are they casual or hardcore players? Male or female? Age?

Acquiring users:
Now you must let them know about your game. There are several ways to acquire users, both paid and free. Advertisement, app store organic and featuring, cross promotion and PR (not very effective) through blogs and youtubers. Free users are free, which is good, but high quality users are more escarce. Games that depend on purchases also depend on high quality users, usually from ads.

Monetizing:
The good $tuff. There are three major ways to monetize nowadays. Ads, in app purchases and premium. Crossy Road developer Hipster Whale made $10M from ads in 90 days, which is a lot of money. Or is it? When you compare to Supercell’s whopping $6.3M a day, it doesn’t look that way. And that’s before Clash Royale.

Card_OuroGratis It is clear that IAPs are the way to make big money in mobile, but they are indeed more difficult than making money from ads, as IAPs need to make sense in the overall game design and offer true value to the user. Premium model is dying in mobile, as you can see in the app store’s top grossing charts. Minecraft is the only game to show up in the top grossing charts and it is only 43rd. It is still a thing in PC and console for now.

What about Cupcake?
Our demographic is women over 35 years old who like to play games that keep their brains active. Most of our users come from organic, but the top users come from profitable Facebook Ads campaigns. Just like Supercell, we make money from In App Purchases in a model that has proven to be successful, very similar to Candy Crush.

How does your strategy compares to this? Let us know!

Author: Gabriel Stürmer

CMO of Cupcake Entertainment.