Nowadays, there are thousands of free games available via websites and apps like. There is a real demand and market for free games.
But how do free games generate revenue? How are they able to prosper and flourish without charging clients?
This article will explore some of the top ways in which free games turn a profit and how this sector of the gaming industry works.
Why are some games free & what do I get out of it?
Free games are designed to entice players on to the platform so they spend increasing amounts of time there so the company turn a profit through ads or in-game purchases. But despite the games being free, companies often find inventive way to reward players. The social casino business model is a tried and trusted method, take these free video slots for example, when players get involved they can win all kinds of bonus rounds, free spins, free coins, and other rewards and surprises, leaving the player feeling fulfilled.
The social casino business model employs several strategies to generate revenue. Here are some common ways social casino apps make money:
In-app Purchases: Social casino apps offer virtual currency or tokens that players can purchase with real money. These virtual currencies allow players to continue playing games, unlock additional features, purchase virtual goods such as power-ups or decorations, or participate in special events.
Advertisements: Many social casino apps display advertisements to generate revenue. These ads can be in the form of banner ads, interstitial ads, or rewarded video ads. App developers earn money based on the number of impressions or clicks generated by these ads.
VIP Memberships: Social casino apps often offer premium or VIP memberships to players. These memberships provide exclusive benefits such as faster progression, higher rewards, special bonuses, and access to VIP-only features. Players pay a recurring fee or make a one-time purchase to become VIP members.
Sponsorships and Brand Partnerships: Social casino apps may collaborate with real-world brands or companies for sponsorships or brand partnerships. This can involve featuring branded content within the app or hosting special events and promotions related to the partnered brand. The app developer earns money through these collaborations.
Cross-promotion: Some social casino apps cross-promote other apps or games developed by the same company or by partner companies. By featuring ads or recommendations for other apps, the app developer generates additional downloads and potential revenue from those apps.
Data Monetization: Social casino apps may collect and analyze user data to gain insights into player behavior and preferences. They can then monetize this data by selling it to third-party advertisers or market research firms.
It’s important to note that the specific revenue generation methods employed by social casino apps may vary across different platforms and individual apps.
They also help companies drive traffic to their websites as well as increase their app’s download number on app stores. This, in turn, helps companies climb up rankings and gain more attention.
The top ways for free games to generate revenue
Without further ado, here are the top ways in which free games make a profit.
- Ads
The majority of free games on websites and apps are able to survive financially thanks to ads. Companies will pay the gaming platform to have their ads displayed on it.
This works particularly well when a game is well-known and popular. Companies will be more willing to pay a higher price for their ads to be displayed on a frequently visited gaming platform.
This means more exposure for them, so the higher the exposure, the more beneficial it will be for that company.
In other words, the more popular the game or platform, the more that platform can charge companies for displaying their ads.
2. In-app or in-game purchases
Many free games also turn a profit via in-app or in-game purchases.
For example, if a player wants to buy more equipment for their character or replay a round that they have just lost, they can usually do so by spending some money.
In-app or in-game purchases usually give players a more comfortable and enjoyable gaming experience which is why they are usually a successful strategy for providers and developers to implement.
Players who enjoy the free version of the game but understand its limitations and have the budget to purchase some additional features will usually do so.
Some games also give players the option to pay for an ad-free gaming session. Those who have the means and are truly passionate about gaming tend to purchase the ad-free version.
Those who cannot afford to pay or are not too bothered by ads can simply continue to play for free. It is a win-win situation for everyone that successfully earns the gaming providers revenue either way.
3. Purchasable games
Some providers turn a profit by using their free game to promote their purchasable games.
This is slightly different from in-app or in-game purchases. The providers are not necessarily selling features within the free game itself but using it to encourage players to look at their other games.
Sometimes, companies will offer a free game that is actually an extract or a demo of a purchasable game. In this scenario, the free game essentially becomes a trial for players to try out the final product and decide whether they want to purchase it or not.
This is a successful technique that many companies use. Some will choose to make a stand-alone free game but promote their other games through it.
Both of these techniques tend to be successful and eventually help the company to turn a profit when fans decide to purchase one of their games.
Of course, for these methods to be successful, the free game has to please players and the gaming community. The more popular the free game is, the more financially successful the company will be.
4. Merchandise and additional products
Successful free games and companies usually capitalize on their popularity by selling merch and other products. Devoted fans are quick to purchase these products to show their love for the game.
Some of these products are sometimes created and sold by fans for fans. However, because these shops need to pay a fee to use the game’s name, the products they sell still earn the game developers and providers revenue.
This is particularly true of Fortnite. Fortnite does not appear to have any official shops however there are several artists and online shops that have obtained a license from Fortnite and are authorized to sell Fortnite-themed products.
They pay a commission and royalties to the game’s developers and main company. This brings in at least hundreds of thousands of dollars to the game’s creators and represents a wonderful source of passive income for the gaming company.
Final thoughts
This article explored four ways that companies earn revenue with free games. There are many other methods that providers use but these are the most common and popular ones.
Free games are a win-win situation for both players and companies and are most likely here to stay.