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  • Discussion of business models; subscription vs one-time payment.

    Christine created 5 days, 17 hours ago 0 Member · 1 Post
  • Christine

    Member
    September 11, 2019 at 6:47 am

    Hi everyone. We had an interesting discussion the other day at the office about business models. The subject of the discussion where subscription model vs. one-time payment for virtual items. To explain further on we can take our web-based gaming platform Tiltspot as an example. We can base our business model on subscriptions which will potentially lead to recurring revenue, meaning that people will pay the same amount each month. This way will make it easier for us to project future income and make the idea easier to sell to investors as the “risk” will degrade. On the other side, if the users aren’t using the service that much, they will most likely stop using the platform, as the value provided is far from good enough. In Tiltspots case this can be that the games provided are not good enough or that the library provided is not big enough for the users to see a great enough value. If we look at the on-time payment for virtual good, that might lead to more satisfaction for the users as they will see the value-added when purchasing. If they like a game, they can buy it. They will feel more like the owners and they will potentially use more money on it. On the other side, this business model is risky and requires a lot of users as the average sales percentage for games, similar to what Tiltspot offers, are 2%. It will also be harder to estimate future income. There are a lot of other business models that can be discussed as well, but I am interested in what you in this hq overview-thread thinks about these two business models. What can a platform like Tiltspot do, and are you favouring one over the other? Can they be combined in a creative way? ​ Let me know what you think! – by hq overview Tiltspot – –

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