The Top F2P Monetization Tricks
Coercive Monetization
A coercive monetization model depends on the ability to “trick” a person into making a purchase with incomplete information, or by hiding that information such that while it is technically available, the brain of the consumer does not access that information. Hiding a purchase can be as simple as disguising the relationship between the action and the cost as I describe in my Systems of Control in F2P paper.
Research has shown that putting even one intermediate currency between the consumer and real money, such as a “game gem” (premium currency), makes the consumer much less adept at assessing the value of the transaction. Additional intermediary objects, what I call “layering”, makes it even harder for the brain to accurately assess the situation, especially if there is some additional stress applied.
This additional stress is often in the form of what Roger Dickey from Zynga calls “fun pain”. I describe this in my Two Contrasting Views of Monetization paper from 2011. This involves putting the consumer in a very uncomfortable or undesirable position in the game and then offering to remove this “pain” in return for spending money. This money is always layered in coercive monetization models, because if confronted with a “real” purchase the consumer would be less likely to fall for the trick.
As discussed in my Monetizing Children paper, the ability to weigh this short term “pain relief” vs. the long term opportunity costs of spending money is a brain activity shown by research to be handled in the pre-frontal cortex. This area of the brain typically completes its development at the age of 25. Thus consumers under the age of 25 will have increased vulnerability to fun pain and layering effects, with younger consumers increasingly vulnerable. While those older than 25 can fall for very well constructed coercive monetization models, especially if they are unfamiliar with them (first generation Facebook gamers), the target audience for these products is those under the age of 25. For this reason these products are almost always presented with cartoonish graphics and child-like characters.
Note that while monetizing those under 18 runs the risk of charge backs, those between the age of 18 and 25 are still in the process of brain development and are considered legal adults. It seems unlikely that anyone in this age range, having been anointed with adulthood, is going to appeal to a credit card company for relief by saying they are still developmentally immature. Thus this group is a vulnerable population with no legal protection, making them the ideal target audience for these methods. Not coincidentally, this age range of consumer is also highly desired by credit card companies.
The exception to the above child targeting would be products making heavy use of Supremacy Goods, which I will discuss near the end of this paper. These products target a wider age range of users that are vulnerable to such appeals.HT: Marginal Revolution
Premium Currencies
To maximize the efficacy of a coercive monetization model, you must use a premium currency, ideally with the ability to purchase said currency in-app. Making the consumer exit the game to make a purchase gives the target's brain more time to figure out what you are up to, lowering your chances of a sale. If you can set up your game to allow “one button conversion”, such as in many iOS games, then obviously this is ideal. The same effect is seen in real world retail stores where people buying goods with cash tend to spend less than those buying with credit cards, due to the layering effect....MUCH MORE
