Profit Models

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Profit Models

Advertising Supported

This is basic -- you display advertisements in game. Advertisers pay you for the advertisements, and so the basic game-play is free. The advertiser gets statistics, or w/e, and makes judgements based on those on if they want to continue advertising.

Pros:

• Free for Players
• Recurring periodic revenue

Cons:

• Have to maintain advertisements
• Some players won't like advertisements
• May be labeled adware/spyware even when not due to the combination

Subscription based services

Pay-per-play

Pay per play is simple. You buy time units, play sessions, or whatever. Once you're out of units, you can't play again until you purchase more.

Pros:

• Recurring periodic revenue
• Casual players pay less than heavy players
• Payment is based on approximate server usage -- people who play more pay more than people who pay less.

Cons:

• Players have to pay in order to play
• Sometimes is seen as being greedy (by heavy players)
• Introduces complications to disconnects, etc.

Periodic Recurring Subscription

Pay a recurring monthly fee. This is a very common model, people pay you for 30 days or w/e.

Pros:

• Recurring periodic revenue

Cons:

• Players have to pay in order to play
• Casual players pay as much as heavy players
• Most players will only pay for one game at a time.

Periodic Recurring Subscription with Perks

This is the same as above, but with additional charge for "perks," such as extra character slots, character web pages, etc.

Pros:

• Recurring periodic revenue
• Most heavy players will end up purchasing at least one "perk."

Cons:

• Players have to pay in order to play
• Most players will only pay for one game at a time.

Lifetime Subscription

This is the same as the recurring monthly subscription, except it is paid once. The goal is to make enough off the lifetime subscription that over time, the interest replaces the monthly fee. The advantage of this early in a game life (often it is restricted to first "n" people to buy the subscription) is that it generates a good pool of capital you can draw on.

Pros:

• Single time fee

Cons:

• Players have to pay in order to play
• Casual players pay as much as heavy players
• Usually a very high fee

Optional Membership Model

This is the same as any of the above subscription models, but adds into the mix free play. Purchasing a recurring subscription unlocks features (such as additional zones, additional equipment, etc.) that are not available without the optional membership.

Pay for Content Model

This is basic -- you charge for the base game, you charge for expansions, but you don't charge for much of anything else (you might have additional one-time charges or w/e for individual features). The idea behind this model is to release good expansions frequently, so that everyone rushes out and purchases them.

Virtual Currency Models

Virtual Currency - Fixed

In this model, basic game play is low cost or free. Money is made by trading real world currency for a "virtual currency" used to buy perks in the game. Players never "have" to buy the virtual currency, but get desirable perks if they do. The perks are (ideally) limited use, temporary items that disappear after some time. Perks range from simple things (special costume items) to gameplay benefits (bonus experience, reverse death penalties, etc.).

In the "Fixed" variant, the currency is "n" virtual units for "m" Us units -- for example 1005 Acclaim Credits for $10 US Dollars. Usually this currency is distinct from any in-game money system.

Pros:

• No Monthly Fee
• Players only pay for "Perks"

Cons:

• Perks have to be worthwhile (even if just cosmetic), or you won't sell enough to operate the server

Virtual Currency - Dynamic

This is the same as the fixed model, except the currency is bidirectional, with a floating price based on supply and demand. Players with currency they want to sell set a price, and players who want to buy currency start by buying from the lowest price, and then work into the higher prices. In this model, usually the currency is the game currency (this allows people to effectively make money by playing the game)

Pros:

• No Monthly Fee
• Some Players may make money

Cons:

• Have to keep a reserve cash pool
• Have to limit money coming into economy
• Unpredictable profit based on a percentage of the "exchange"

Feel free to revise/edit as necessary. This is just a starting point.