First month post-launch is crucial for monetization
Adding monetization features post-launch is like putting wings on a car - it seldom works.
When you're closing in to the release date most of the features and improvements designers and product managers come up with end up in the feature backlog. That's normal. You have to compromise to hit the deadline. But when monetization features start ending up in the feature backlog an alarm should go off because the first month or two is when most of the games peak.
The Numbers
The table below is an example of the first 6 months of a game. The installs on the left show number of new users per month. The retention is calculated so that out of those who install the app 50% remain after first month, 20% after second month and so forth. By calculating the retained user base for each cohort of new users (Cohort1: started playing in July, Cohort2: started playing in August...) you can estimate the size of the user base per month. Not a high tech calculation but it will help to give you a rough ballpark estimate.
As you can see from the table above what typically happens is that the majority of new users will start playing during the first month after which the amount of installs quickly decreases. The installs decrease simply because in the beginning you get featured, you'll commit on marketing and run cross promotion in all of your other titles. But there are only so many people you can incentivize to install the app and unless you have the next Angry Birds, your installs will go rapidly down.
As the amount of new users decrease rapidly the retention plays a huge role. Often we love to think that people will play our games for months every day. But be real with yourself. The truth is that majority of people will try it out few times and just forget about it. Move on to the next thing or just uninstall the app. Some will play it for a week, maybe even two. If it's a really good game with a ton of content a minority might keep playing after a month or two but that's about it.
So because people keep playing a game for a short period of time and because the majority of new users start playing during the first month or two after the launch you should have solid monetization features in place at launch. In the ens i
t's just simple math: with a bigger active user base you have more paying users.
The Excuses
When you start asking why there are no monetization features in the game is when you start hearing excuses. Below are three of the most common I tend to hear...
"We don't have the time"
99% of deadlines can be pushed because we're not shipping physical products. Of course there has to be a VERY GOOD reason for moving a deadline but can there be a better reason than increasing lifetime revenue of the title by 20% - 50%? Do you really want to hit the deadline and loose a massive chunk of revenue in the process?
"We'll add the monetization features in the next update"
When is the next update? In a month? So it's ok that 30% of all the users who'll ever play the game will not be even tempted to convert?
"We'll concentrate first on making the game solid and hook players. Then we'll concentrate on monetization"
One of my favorite excuses used mainly by producers who have no experience in freemium games. The thing is that when you launch the game has to be extremely hooking, bug free and smooth. If that's not the case, don't launch! And you can't add monetization features later. First of all you'll lose the chance to monetize the majority. Secondly adding monetization later on is like bolting wings to a care in and hoping it will fly.
Majority matters the most
In the end it's important to understand that a very large portion of users will be playing the game right after you launch and will never come back after that. So all the monetization features have to be there from the get go. Designers are always thinking about the super loyal active players who are sticking through the game from an update to another but we who look at the numbers should keep an eye on the vast majority of players. Those who install the app just because it's featured or advertised. Those who'll play the game for a week or two even if they like it. Those who move on to the next game because it was featured or advertised. Those 90% of players who we need to monetize.
