How to Make Money as a Gaming App Developer

Just about everybody has some kind of gaming app for their Smartphone or Tablet. Gaming apps continually top the list for most profitable apps. In a July 2013 article, the Business Insider estimated that Candy Crush alone made $633,000 a day. Many of these gaming apps are absolutely free, yet app developers continue to make huge profits year after year. How do they do it?

There are a variety of different methods that game makers utilize to maximize their gaming app profits. These methods are some of the most powerful ways to make money in the mobile market, and can be adapted to just about any other kind of apps. These methods include: upselling, in-app purchases, ads, cost per install, and even sponsorship.

Upselling

Upselling is the process of limiting access to certain game features until the user pays for them. Many gaming apps offer paid "HD" versions of apps or paid "full" versions that include features you can't get from the free versions. Certain areas of the game may be blocked from access or certain gaming methods unavailable. This tactic satisfies players who just want a free game, but creates profit potential for the cunning app developer.

In-app Purchases

In-app purchases are one of the most powerful ways to make money as a gaming app developer. It actually has the potential to create an infinite cash loop for the developer. Basically, players have the option to pay money to get more lives, gold coins, or other essential gaming items. A good example of this method involves Candy Crush. Players can either wait 20 minutes per life to get new lives, or pay a small fee to get lives immediately.

Ads

Ads are another powerful app profit method. Not necessarily running ads in your game (which many people do), but paying for banner ads for your game. It may seem strange to pay to advertise a free product, but it is worth it if you target the right audience. Lets say a developer has a role playing game app with a potential infinite profit loop method of payment for more experience points. Advertising this free app on popular role playing gaming websites can attract players that may not have spotted the game and can potentially hook them in on the payment loop.

Cost Per Install

Cost per install or CPI is one of the newest gaming app profit method. Basically, you pay a third-party to promote your app and host it. They promote the game, bring in money from advertising and other gaming methods, and spread the word of your game. They make a certain amount of money each time the game is installed. You will also make money each time your game is installed. You will make a little less than the third-party, but they will be doing most of the hard work promoting and hosting your game, so it's a fair trade off.

There are a few things you should avoid if you want to make a profit as a game app developer. Never set the premium pay-per-download option as the default. That will drive away users who think the game costs too much. You should also create a marketing plan before building your app, create platform appropriate customization, avoid in-game advertisement, and create a game that is fun to play.