In freemium games, pricing can make or break your revenue. To turn free players into paying ones, use these five proven strategies:
- Price Anchoring: Show high-priced items first to make cheaper options seem like a bargain.
- Decoy Effect: Add a middle-tier option to nudge players toward premium purchases.
- Limited-Time Offers: Use countdowns to create urgency and drive quick decisions.
- Bundling: Group items together to increase perceived value and average spend.
- Odd-Even Pricing: Price items like $4.99 instead of $5.00 to feel more affordable.
These tactics tap into psychology, boosting engagement and revenue. Combine them and test what works best for your audience.
Quick Comparison Table:
| Tactic | Key Benefit | Best Use |
|---|---|---|
| Price Anchoring | Shapes value perception | Premium currency packages |
| Decoy Effect | Encourages target purchases | Bundle offerings |
| Limited-Time Offers | Sparks urgency | Special events and sales |
| Bundling | Boosts average order value | Resource packs and VIP deals |
| Odd-Even Pricing | Makes prices feel affordable | Entry-level purchases |
Start experimenting with these strategies to maximize your game’s profitability.
How free games are designed to make money
1. Price Anchoring: Setting Reference Points
Price anchoring uses high-priced reference points to influence how players perceive value in mobile freemium games. By strategically placing premium items, developers can nudge players toward specific purchases. For instance, a $99.99 bundle makes $9.99 or $19.99 bundles feel like a steal in comparison.
Here’s an example of how games apply price anchoring:
| Bundle Size | Price Point | Purpose |
|---|---|---|
| Small | $4.99 – $9.99 | Entry-level purchases |
| Medium | $19.99 – $49.99 | Highlight value |
| Large | $99.99+ | Establish anchor |
How to use price anchoring effectively:
- Showcase premium bundles first: Display the highest-priced option prominently to set the reference point.
- Offer clear value progression: Ensure each pricing tier provides better value per dollar spent.
- Create noticeable gaps between tiers: This helps players easily see the difference in value.
While the high-priced option should deliver real benefits for power users, its main role is to make lower-priced bundles look more appealing.
2. Decoy Effect: Strategic Price Options
The decoy effect works hand-in-hand with price anchoring to nudge players toward premium packages. In freemium games, this often involves offering three pricing tiers, where the middle option subtly highlights the premium package as a better deal.
Here’s a simple example:
| Package | Price | Value | Cost per Unit |
|---|---|---|---|
| Basic | $4.99 | 500 gems | $0.010/gem |
| Middle | $19.99 | 1,800 gems | $0.011/gem |
| Premium | $49.99 | 6,000 gems | $0.008/gem |
Notice how the middle option, with a higher cost per gem, makes the premium package look more appealing.
How to make this work:
- Value Contrast: Set the middle tier’s cost-per-unit slightly higher than the others to emphasize the premium deal.
- Feature Bundling: Include all features from the lower tiers in the premium option, adding exclusive bonuses.
- Clear Comparison: Display the three options side-by-side to make the differences easy to spot.
Pitfalls to watch out for:
- Don’t make the decoy option so unappealing that it damages trust in your pricing.
- Keep price differences reasonable to avoid alienating players.
- Regularly test and tweak the pricing tiers based on user behavior.
Experts at Adrian Crook & Associates, with over 17 years of experience in freemium game design, stress that a well-thought-out decoy can effectively guide players toward premium choices. Pro tip: Highlight the premium package’s value by comparing metrics like gems-per-dollar rather than focusing solely on added bonuses.
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3. Limited-Time Offers: Creating Urgency
Limited-time offers use the idea of scarcity to encourage fast decisions. Adding a countdown timer can visually highlight how short the window is, pushing shoppers to act quickly. You can also try bundling products together to make the deal feel even more appealing.
4. Bundling: Package Deals That Work
In freemium games, bundling combines several items or features into one package, making it more appealing to players and encouraging purchases. Similar to limited-time offers, bundles create a sense of urgency and value that motivates quick decisions.
Consider offering bundles tailored to different player types – basic options for beginners, mid-tier packages for regular players, and premium bundles for your most loyal fans. Each should clearly showcase the added benefits.
Here are some tips for creating effective bundles:
- Theme-based bundles: Group related items, like pairing character skins with matching accessories.
- Progressive value: Ensure each bundle tier offers noticeably better perks than the last.
- Mixed content: Combine must-have resources with exclusive items to make the package irresistible.
Adrian Crook & Associates emphasize the importance of balancing immediate usefulness with long-term engagement to boost in-app revenue.
5. Odd-Even Pricing: Price Point Psychology
Odd-even pricing taps into how people perceive numbers, specifically using the left-digit effect. This is why $4.99 feels noticeably cheaper than $5.00, even though the difference is just a penny.
The idea is simple: we tend to focus on the leftmost digit of a price. This subtle psychological trick can shape how players view your pricing. Here’s how different price endings influence perception:
- Endings in .99: Signal affordability and value.
- Even-numbered prices: Create an impression of higher quality or exclusivity.
- Alternatives like .95 or .97: Help differentiate your offer from competitors.
But context matters. The success of odd-even pricing depends on what’s being sold. Take a look at how it works in different scenarios:
| Purchase Type | Recommended Pricing | Psychological Effect |
|---|---|---|
| Starter Packs | $0.99 – $4.99 | Low barrier to entry |
| Premium Currency | $9.99, $19.99, $49.99 | Feels like better value |
| VIP Packages | $50.00, $100.00 | Conveys high-end quality |
To get the most out of this strategy:
- Test it out: Use A/B testing to see which price endings resonate best.
- Match the price to the product: Odd pricing works well for consumables, while even pricing suits premium items.
- Stay consistent: Align your price endings with your broader monetization goals.
This approach can make a big difference in how players perceive – and respond to – your pricing.
Conclusion
Use these strategies with a data-focused approach to improve player engagement and grow revenue. Research shows that combining multiple tactics leads to better results. Each method brings its own advantages:
| Pricing Tactic | Primary Benefit | Best Used For |
|---|---|---|
| Price Anchoring | Shapes value perception | Premium currency packages |
| Decoy Effect | Encourages target purchases | Bundle offerings |
| Limited-Time Offers | Sparks urgency | Special events and sales |
| Bundling | Boosts average order value | Resource packs and VIP deals |
| Odd-Even Pricing | Makes prices feel affordable | Entry-level purchases |
These strategies work together to create a well-rounded pricing model. Industry experts back this approach:
"Working with AC&A allowed us to clarify key issues with our game design while we were still early enough in the development process to make changes. Because of the specific recommendations we received from Jordan, our game is both more fun for players and able to monetize those players more effectively"
If you’re planning to implement these tactics, here are some tips:
- Experiment with price points and combinations to find what works best.
- Track player behavior and tweak your strategies accordingly.
- Consider your game’s genre and audience to ensure alignment.
- Use performance data to fine-tune your approach over time.
"AC&A did a wonderful job and were highly collaborative with LEGO. Their associate very quickly became part of our team. He was exceptional in his ability to communicate the needs and risks of the project and he shared the valuable insights from his colleagues at AC&A when appropriate. We greatly appreciate the collaboration with AC&A!"