Revenue in period: outflows

Engagement and the economy flows to revenue in the following ways:

• Outflows typically correlates to engagement in the core loop.
  • More engagement equates to more outflows that equates to more money.
  • Therefore, outflows is the key focus as it is highly correlated to engagement.
• Here’s what this equation would look like:

Revenue in period will increase if there is an increase in non-game play and gameplay asset outflows that add to the app’s engagement and asset wallet.

Revenue in period: Free inflows

Free inflows generally have a negative correlation on revenue. 

• This is not to say that providing free inflows is bad, it can help show your players the value of your in-game assets.
• However, it’s very important to ensure that as the free flow increases, there’s a corresponding increase in outflows. An example of this is when an engagement feature nets more outflows or there’s some additional means to drive more engagement.
• Here’s what this equation would look like:

Revenue is negatively impacted when you increase engagement using free non-gameplay and gameplay asset inflows. This cost is taken out from the asset outflows and asset wallet to calculate the revenue.

High starting balances are bad for revenue.

• The higher the players’ balance usually implies less demand for purchases in your game.
• Here’s what this equation would look like: Revenue in period is negatively impacted with high starting asset wallet size that is added to the difference in asset outflows and inflows for each asset.