FlashGameLicense Blog: Monetizing Your Web Game Part 1

FlashGameLicense Blog: Monetizing Your Web Game Part 1:

Monetizing Your Web Game Part 1

Currently there are many choices when it comes to monetizing a web game. It can be daunting to decide which model is best for a developer. On top of this, there are conflicting reports as to which ones are truly lucrative. The hope of this series of articles is to shine a light on many of the monetization methods to choose from by presenting hard facts based on case studies from a number of developers as well as statistics we have been tracking at FlashGameLicense.com and GamerSafe.com.

Part 1: Sponsorship and Licensing

Before I get into the ins and outs of licensing a web game, let me define some terms:

Sponsorship

• A deal made between an entity (the sponsor) and a developer in which the sponsor pays to have their branding/ads in one of the developer’s games. The terms Sponsorship and License are used interchangeably in most cases (and in all cases for the purposes of this article).

Primary License/Sponsorship

· A sponsorship where the Sponsor has their branding in every copy of the game on the web except where the developer has explicitly sold a Secondary License (defined below) to another entity. The developer has complete freedom to remove the primary sponsor’s branding and make any other changes to the game as long as it is licensed and locked to the other entity’s domain.

Non-Exclusive License/Sponsorship

· A Sponsorship where the license of the game is not exclusive to the buyer. The buyer is purchasing one custom version of the game.

Secondary License (aka Non-Exclusive Site-Locked License)

· A Sponsorship where the license of the game is not exclusive to the buyer. The buyer is purchasing one custom version of the game, and this version must be “locked” to the buyer’s domain. This is the most common type of non-exclusive license and it is compatible with the primary license.

Performance Bonus

· A bonus paid by the Sponsor to the Developer based on pre-defined performance milestones. Bonus structures take many forms. A couple of examples are: a lump sum payout if a game gets a certain number of plays, or a CPC (cost per click) deal where the Developer is paid for each unique user sent back to the Sponsor’s site.[...]