How to make money from mobile games? The 7 best models for making money

The question of how to monetise a mobile game and what strategy to use is one that many game developers ask themselves. In our guide, you will discover mobile game monetisation methods and how to successfully monetise mobile games.

Apps are a real and profitable business. More than half of the money made in the App Store and Google Play Store comes from the indie games industry. This market is huge; it was valued at over $100 billion in 2024 and is expected to triple in the next 10 years.

Many developers are entering the indie games market. Creating a game is one thing, but making a profit is quite another.

Making money from mobile games

The process of making money from mobile games is called monetisation. It encompasses the various tactics and approaches used by game developers to make money from their creations.

Some games make huge amounts of money as soon as they are released, but others take years to gain popularity. It all depends on how well the mobile game is made and how the developers approach monetisation.

To make a game financially viable, there are many ways to turn player engagement into profit. As a developer, you can experiment with different strategies to see which model or models are the most profitable in your case.

So how can mobile games generate revenue?

Research the games market and the mobile games business model to better understand how mobile games generate revenue. Most games on the market are free to play. Players see in-game ads and/or microtransactions, which generate revenue.

Paid games are another way of monetisation. Players must first pay a one-off fee to install and play. Players are aware that the developer needs to generate profit and and expect to see monetisation options in mobile games.

Monetisation models for mobile games

One of the first steps in the monetisation process is to choose a model. By analysing the market and the competition, you can see which mobile game monetisation models are used less frequently or frequently.

IAP

A common method of monetising games is in-app purchases (IAP), which allow users to purchase virtual products. These purchases range from non-consumable items such as permanent character upgrades, new levels and cosmetic upgrades to consumable items such as in-game currency, upgrades and extra lives. These purchases are often made by players to improve their game experience, advance faster or personalise their avatars.

Using this method, you can:

• generate a steady stream of income;
• allow free play to attract more players and lower the barrier to entry;
• increase player retention and engagement.

Of course, difficulties can arise:

• to prevent a pay-to-win situation that may result in player dissatisfaction and churn, you need to balance the game;
• you need to make sure that players who choose not to pay continue to enjoy themselves

You will no doubt recognise Candy Crush Saga and Clash of Clans as two popular games that use IAP. The former buys extra lives and upgrades to help players get through difficult stages, while Clash of Clans provides in-game currency and other resources to speed up training and build timeframes. These games demonstrate how properly executed IAPs can generate profit while keeping players happy and engaged.

In-app ads

To accommodate different gameplay conditions and user interactions, different ad formats can be used, e.g:

• Banner ads: ads that appear at the top or bottom of the screen.
• Native ads: ads that appear to be part of the game environment and blend well with the game content. They blend into the aesthetics of the game, are less intrusive and can be more engaging.
• Full-screen ads: These appear during organic transitions in the game, for example between stages. If not properly timed, these ads can be more intrusive, despite being more engaging.
• Video ads: An effective form that has the potential to increase engagement.

In-app ads have the following advantages:

• They increase profit potential, and a variety of ad types can be used.
• Many players are used to seeing ads in free games.

Of course, there are also some difficulties:

• Ads that are too frequent or poorly laid out can ruin the experience and annoy players.
• Some players use ad blockers, which can reduce earnings.

Ads can be incorporated into games without disrupting the user experience by strategically placing them. Offering players valuable in-game rewards for watching incentive videos can increase player satisfaction and engagement. To ensure that ads do not negatively impact the player experience, test their placement and gather player feedback.

Subscriptions

With a subscription model, users pay a regular fee to access premium features or in-game content. The strategy improves player engagement by providing exclusive bonuses such as more levels, characters or ad-free experiences.

Pros:

• Developers are able to plan and invest in upcoming upgrades and enhancements because recurring payments offer a steady and predictable profit stream.
• Players are more likely to stay in the game.
• Subscribers often get access to exclusive content and features.
• A free level with a subscription option may initially attract more players.

Minuses:

• Convincing players to switch from free to paid membership requires effort and well-defined value propositions.
• Regular updates are essential to maintain member interest.
• When several games offer comparable models, players will have to decide which game to choose.

An example is Apple Arcade, which is not really a game, but rather a service offering a large selection of exclusive ad-free games for a small monthly subscription. Clash Royale offers a season pass that provides players with special perks and bonuses to enhance their gameplay experience. Managing a subscription is not straightforward, but if done correctly, it can be quite rewarding.

Premium payment

Users who choose the paid premium model must pay a one-off fee. This model guarantees money from each download, freeing the developer from the burden of continuous monetisation strategies.

Attracting players to premium games can be difficult in a market dominated by free-to-play games. Players are often reluctant to pay for a game upfront. Offering a compelling value proposition through excellent graphics, immersive gameplay and distinctive features that differentiate the game is key to overcoming this problem. Strong marketing, positive reviews and social media engagement help build trust among potential buyers.

Many high-end games have been successful and players are willing to pay for unique and high-quality experiences. This is evidenced by titles such as Monument Valley, Minecraft, The Room and others.

Hybrid monetisation

To optimise a game's earning potential, a hybrid monetisation strategy combines all of the previously discussed tactics. Advantages of combining:

• Higher revenue potential: Developers can maximise profits by combining different monetisation strategies, for example, players can see ads even if they do not make in-app purchases.
• Player choice: Allows players to choose how to support the game. While some players may feel more comfortable watching ads, others may prefer to make purchases.
• Lower risk: Diversifying revenue streams reduces the risks associated with changes in platform regulations, market trends or player behaviour.
• Greater engagement: Providing players with different methods of obtaining rewards or premium content helps to increase player engagement.

Sponsorship and collaboration

Collaboration and sponsorship provide benefits beyond immediate money generation. The main benefit is increased visibility, as partnerships with well-known companies can raise the reputation of the game, attracting media interest and increasing downloads.

The Angry Birds and Rio film partnership is an example of a successful collaboration in the mobile gaming industry. Another example is the partnership of Pokémon GO with companies such as McDonald's and Starbucks.

Monetising the meta layer

Adding items that can be monetised outside of the core gameplay, such as cosmetics, especially competitive gaming cosmetics such as Counter-Strike 2 skins on top Counter-Strike betting sites found at Bookmaker Expert, is known as the meta layer monetisation model.

While more dedicated players may be interested in purchasing combat passes that provide exclusive rewards and accelerate progression, casual players may appreciate products that allow them to personalise their avatars.

Call of Duty: Mobile, which provides combat passes with exclusive content, and Fortnite, where users buy skins and emoticons, are two examples of meta monetisation strategies in action.

Summary

A well-defined plan and the right monetisation strategy are essential to the success of a mobile app.