1. grgetherh
Playing with Pricing in
Social Mobile Games
Oscar Clark Evangelist
PapayaMobile Inc

2. Syllabus: Playing with Pricing
• Some of the theory behind Freemium
billing models?
• Understanding Player Reward behaviours
& Lifecycle
• The importance of the Free-Player, Minow
& Whale
• Virtual Goods Techniques
• Working with Papaya
Image Source: http://jameslao.com/2008/04/

3. Billing and Game Design: Theories
Lets start with some
economic principles
• Consumer Purchase Process
• Price Elasticity of Demand
• Barriers to Purchase
• Short Term and Long Term Risk
...and how they apply to Social Games
Image Source: http://harmonyartmom.blogspot.co.uk/2009/04/sketch-tuesday-take-seat.html

4. Consumer Purchase Process
Give your users a Purchase
reason to buy goods
• How easy it is to buy?
Blocking Events
Permission
• What drives anticipation?
Stimulus
• Are there blocking events? Consideration
• What motivates users? Review
• What gives them
„Permission?‟ Motivation
Remorse
Awareness

5. Pricing Elasticity of Demand
Maximize the
opportunity
• Price affects supply
• Revenue = Price times users
• $0 to $0.001 is huge barrier
• $0.001 to $1 is easier
• Multiple low price purchases
easier than fewer high price

6. Pricing Elasticity of Demand
Maximize the
opportunity
• Price affects supply
≠
• Revenue = Price times users
• $0 to $0.001 is huge barrier
• $0.001 to $1 is easier
• Multiple low price purchases
easier than fewer high price

7. Short term and long term
Nagging has an impact
on long term loyalty
• Consumables are easy short term
• Durables are east longer term
• The existence of both affects player
confidence & willing to buy
• Durables should reduce the
nagging/Blocking Events

8. Short term and long term
Nagging has an impact
on long term loyalty
• Consumables are easy short term
• Durables are east longer term
• The existence of both affects player
confidence & willing to buy
• Durables should reduce the
nagging/Blocking Events

9. Short term and long term
Nagging has an impact
on long term loyalty
• Consumables are easy short term
• Durables are easy longer term
• The existence of both affects player
confidence & willing to buy
• Durables should reduce the
nagging/Blocking Events

10. Short term and long term
Nagging has an impact
on long term loyalty
• Consumables are easy short term
• Durables are east longer term
• The existence of both affects player
confidence & willing to buy
• Durables should reduce the
nagging/Blocking Events

11. Syllabus: Playing with Pricing
• Some of the theory behind Freemium
billing models?
• Understanding Player Reward
behaviours & Lifecycle
• The importance of the Free-Player, Minow
& Whale
• Virtual Goods Techniques
• Using the Papaya Game Engine for rapid
Social Game Development
Image Source: http://jameslao.com/2008/04/

12. Where does Social come in?
Maslow‟s Hierachy
• Gamers need to be
entertained Make the
• Trust influences buying most of
decision making the game
• Social Influences affect buying
Let me show off
choices
• Players typically purchase Who else plays?
„Customization‟ items first Build my trust
• „True Fans‟ spend most on
game accelerators
Keep me entertained
Image found via Flikr (Erica Glasier)

13. Who are your players?
Different Players buy for
different reasons
• Collector:
– "Got to catch them all"
• Explorer:
– "Where can I go today?"
• Socialiser:
– "I want to be popular"
• Competitor:
– "I'm going to Pwn ya!"

14. What do your players want now?
Mobile Players play
based on Mood & Mode
• Entertain Me:
– "Keep me from going mad"
• Max my time:
– "Just two minutes to fill"
• Show and tell:
– "Too cool for you"
• Habit Forming:
– "My guilty pleasure"

15. The life of the game
Where are your users
in their lifecycle
• Products have a lifecycle
• Players also have a lifecycle Revenue
• Early stages are vital starts here!
• Push past the 'chasm'
Image Source: http://www.agilemodeling.com/essays/proof.htm

16. Syllabus: Playing with Pricing
• How does the billing model affect game
design?
• Understanding Player Reward behaviours
& Lifecycle
• The importance of the Free-Player,
Minow & Whale
• Virtual Goods Techniques
• Working with Papaya
Image Source: http://jameslao.com/2008/04/

17. Why do people buy?

18. Understand the True Fans
True Fans are happy to
spend money
•Don't break the Free Player
experience
•Takes 8-12 days to start paying
•Make it great to spend the first $1
•Nurture one-time spenders &
Minows
•What are your „Gateway‟
purchases?

19. Talking Social: Total Lifetime Value
We don't just want a one
night stand
• True fans can take 8-12 days
to start spending
• Work with the user lifecycle
to keep them engaged
• Build Anticipation between
Games
Typical number of
• Cross-Game Virtual
Games an X-City
Currency player where
spends money

20. Compulsion Loops
Give Players a reason to
keep coming back
•Schedule of reinforcement
•Grinding & flow
•Visible achievement stream
•"Just one more turn"
•What happens between
sessions?

21. Syllabus: Playing with Pricing
• How does the billing model affect game
design?
• Understanding Player Reward behaviours
& Lifecycle
• The importance of the Free-Player, Minow
& Whale
• Virtual Goods techniques
• Working with Papaya
Image Source: http://jameslao.com/2008/04/

22. Applying The Theory
Offer low cost
Consumables
• Each with their own
play/refresh profiles
• Pay with Grind only
• Pay with Cash only
• Limit access by „Level‟
• Pay to skip „Cool-down‟

23. Applying The Theory
Balance with different
Durables
• Each with their own art style
& impact on gameplay
• Encourage emergent play
• Grind or in-game currency
• Offset nagging of
consumables

24. Applying The Theory
Reward repeat play
with Collections
• Each with an art style
relevant to their source
• Encourage gifting/trade with
friends
• Trade in for Consumables
• Trade-in for Unique Durables
Image Source: http://www.speedrungames.com/?cat=5

25. Monetization 3.0
Make buying goods
part of the fun
• Collection Cash-in
• Grind relief goods
• Level limited items
• Purchase only items
• Special “Level-clearance”
items

26. Things to Avoid…
Casual Gamers
expect more fun
• Don‟t Punish Players
• Don‟t require purchases to
continue
• Don‟t make the game
painful without spending
• Don‟t sell goods players
can‟t show off

27. Syllabus: Playing with Pricing
• How does the billing model affect game
design?
• Understanding Player Reward behaviours
& Lifecycle
• The importance of the Free-Player, Minow
& Whale
• Virtual Goods Techniques
• Working with Papaya
Image Source: http://jameslao.com/2008/04/

28. Social SDK
Socialize your game and connect to millions of
engaged, active users
1.Integrated social features
2.Integrated social features
3.Virtual currency
4.Support major develop tools
5.Language support

29. Social Game Engine
A Cross-Platform Social Game Engine for Mobiles
1.Integrated social features
2.Virtual currency
3.Script based language
4.Advanced 2D graphics
5.Cross platform
6.Cloud server hosting
7.Language support

30. Summary
Pricing should
enhance gameplay
• Keep players entertained
• Meaningful interaction with
others
• Social Capital for purchases
• Consumables & Durables
• Manage user lifecycle
Image Source: http://www.speedrungames.com/?cat=5

31. Any Questions?
oscarclark@papayamobile.com
Thank you :) Twitter: @Athanateus