Free online games have been the fodder of gaming in the digital age.
Now, quite naturally, this sort of number and intensity is going to see a lot of attention, with millions globally playing these games.
But do you ever think of how free online games earn money even though they charge nothing to the players up-front? Let’s find out.
In-app purchases (Microtransactions)
In-app purchases, or microtransactions, are among the most widespread free online game revenue models.
They’re small, and personal payments are usually made by players who value their specific video gaming experience.
Examples of in-app purchases
Virtual Currency
The game features virtual currency that players can purchase for real money.
It may be used to buy certain items within the game, such as skins or power-ups/accessories like gems in Clash of Clans or V-Bucks from Fortnite.
Cosmetic Items
Non-essential in-game purchases that change the look of a character or thing.
This can include anything from skins to costumes or decorations. This will benefit more games like League of Legends, PUBG, etc.
Pay-to-Advance
These decisions speed up the progression of a game, circumventing grinding or waiting periods.
Popularised by strategy or simulation games, players usually have to pay for levels, unlocking processes and construct time acceleration.
Ad Revenue
The free online games that we provide have no advertisements except for another integrated revenue stream. This can be done through:
Display Ads
Banner ads or interstitials (full-screen) are generally implemented. Such ads are then shown to players whilst loading or in between levels.
Video Ads
Certain games will give players the option to watch video ads in return for some nice rewards, like free currency.
A common use of this model is the “Candy Crush Saga” or “Subway Surfers.”
Rewarded Ads
A player can opt-in to an in-game advantage by watching a video ad.
This opt-in system is less intrusive and generally gives the player the best gaming experience.
Freemium Model
The freemium model is where the basic game experience can be downloaded for free, but
add-ons are charged a premium price.
This allows players to download the game at no cost and then purchase additional content from within it. Premium features can include:
Additional Content
Often, this is restricted to expansions or new levels (or game modes if someone has exclusive ones), but the same-store fronts feel like they each need a piece of everything.
These expansions can be purchased by players who may want to explore more content.
Ad Removal
Others will take the laser option and only charge for a paid version that comes ad-free to give you an overall smoother experience.
Enhanced Gameplay
Premium versions may have features like advanced analytics/insights, better visuals, or additional customization options.
Subscription Services
Gaming is one of the most segmented subscription businesses. These can include:
Subscription Tiers
Different types of subscriptions may be available in games, with each type offering its own range of features.
Exclusivity on higher tiers: More chances to receive content updates or early access for new features and special in-game items.
Season Passes
Season passes are used in a lot of games to deliver players time-limited rewards and tasks.
A battle pass offers the player a series of rewards that are earned for purchasing or using it and are unlocked as they progress in-game by earning experience points.
VIP Memberships
In some games, VIP membership can be purchased, offering various advantages over non-VIP players, such as faster progression.
Game Sponsorships and Partnerships
Free online games have the arguments of sponsorships and partnerships that offer some revenue opportunities as well. This can involve:
Event Sponsorships
Games may sponsor, or in some cases (mainly at high-level competitive play) be sponsored by other events such as Esports Tournaments or gaming conventions.
Brand Collaborations
Aside from this, working with brands or other media franchises is another great way to earn money through in-game exclusives and cross-promotion.
A common exploitation of these hooks is for a game to include characters or content from an in-vogue film or television program.
So, that’s all we have for you about how free online games earn money. We hope that this guide has helped you.