Idea for Different Pricing Structure
ookami007
Member Posts: 581
Having given it a little thought, I have an alternate recommendation for pricing structure.
Tier 0 – FREE – Unlimited free version with no access to publish your game. Basically, you can run it in your preview window and play around with the aspects of GameSalad, get familiar with it and learn it. You just can’t publish it. In addition, I’d restrict access to the higher tier functions – no IAP, etc.
Tier 1 – $9/month – same as above but with the ability to publish your game to secondary platforms (Arcade, etc. – not iOS or Android though) and no ability to monetize the game – no IAP and no ads. They can only publish FREE games.
Tier 2 – $19/month – same as above, but with ability to publish to to iOS and Android as well. But again, all monetization features disabled. And only licensed to publish FREE games.
Tier 3 – $29/month – full functionality, including IAP and Ads. Licensed to make games that you charge for.
Why this approach? Simple. You break down the things people want to do in tiers, allowing you to attract the the people with different needs to the different tiers. Remember, the two big needs seem to be, the ability to make money with the game and the ability to publish to iOS and Android. So separate those into different tiers, so that people who want to do one, but not the other have more incentive to sign up for the lower price. This is actually similar to the way Corona SDK is priced.
Why that structure?
Tier 0 allows for unlimited usage and learning. I think that’s important to hook people in. Also important for students who have little to no disposable income.
Tier 1 allows them to publish games to the newer platforms but make no money. GameSalad should make sure you can’t change the Made with GameSalad start screen so it’s free advertising. Attracting new developers.
Tier 2 allows them to publish to iOS and Android but prevents them from making any money – and again, if you keep the Made with GameSalad start screen, it’s free advertising. Attracting new developers.
Tier 3 becomes the professional developer tier with access to everything. Basically, you’re breaking the tiers up to appeal to the different aspects, while allowing GameSalad to get the benefits of free advertising on the lower tiers to attract more developers.
I really think the time limited free option is going to kill you.
Comments
I think what people are missing on the whole is that GameSalad have failed to convert as many free members to paid as they need to.
They've looked at where the value in their product lies, and discovered that a large proportion of users are learning with the free version and then never actually publishing a game.
What GameSalad is saying now is that free users who never publish a game and never intend to pay for Pro are not users they need to keep. GameSalad never gets anything from them. Losing these customers makes no difference to GameSalad at all.
Some of these free users, though, are finding great value in the learning experience. In playing around with GameSalad and making something for their own amusement. This was me when I first started using GameSalad. These customers, who are currently paying nothing, are the ones GameSalad hopes to convert to paying customers.
The price plan you suggest will lead to no increase in revenue for GameSalad. Would it be preferable for the users? Sure, why not. Would it actually help GameSalad at all? No.
Another thing to consider is that you cannot have a fully-functioning (even with premium features removed) free version of the software and have less than a 12 month commitment for publishing. What would happen under your plan is one of these things (assuming a 12 month commitment):
So end result is that overall, GameSalad will probably earn less money than before. All the customers who were previously paying, are going to keep paying the same or not pay as much ($228/$199 vs $299). They're not going to be upselling any more free users than before, or not many at least.
People keep saying how the lack of a free version is going to kill GameSalad. Maybe so. But what's become very clear is that having the free version was going to kill GameSalad too.
They had, essentially, two options:
Only time will tell if 2 is really the better option than 1, but 1 isn't likely to change anything for GameSalad any time soon, whereas 2 might have a swift effect on their bottom line.
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"GameSalad never gets anything from them. Losing these customers makes no difference to GameSalad at all."
Oh, how short sighted this vision is.
Some of these free users, though, are finding great value in the learning experience. In playing around with GameSalad and making something for their own amusement. This was me when I first started using GameSalad.
If that were you, would you have paid monthly to 'play around'? You know, before you knew what you were doing
Why is it short sighted to focus your resources on the customers paying you money, not on the ones who never intend to pay you anything?
If they find great value in it, they'll be prepared to pay. If they're not prepared to pay, they didn't find enough value in it and GameSalad needs to increase that value.
I personally would have, but I can see why a lot wouldn't. But the percentage of those "playing around" that went on to pay for a Pro sub was clearly too small to be sustainable.
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Value lies in many things. Are non-paying app downloaders for your current app useless to your next project?
When those stats on home page eventually get changed, it will definitely be reflected in a commercial manner
@ant_lad Obviously the free users were finding great value...it was free! But, gamesalad wasn't able to convert those free users to paying users. Maybe they were giving too much value. I agree with @Armelline, their new strategy is definitely a good one financially. And gs seems to be at a point where they need to think on a short term basis or there might not be a long term vision to fulfill.
And you said it yourself "This was me when I first started using GameSalad." Have you converted to a paying user? I don't think the time frame is relevant, some people no matter how long they use something and how much value they get out of it will simply never pay a dime because something has a free option. It comes down to each person's relationship with gs, if you dont sub and a few months from now you're itching to get your gamesalad on, will you remember back on the days you were making games in gs and say "I guess $20 bucks a month isn't too bad. Maybe I will go out to eat one time less a month." I agree certain people will say hell no gs didn't mean that much to me. I won't pretend to know anything about you, but you seem enthusiastic about gs. Like it would be worth more than $20 a month to you. I know for me there are a hundred things I care less about but spend more than $20 a month on. I spend close to that on gum. Coffee I spend way more than that (although I do love coffee). What I'm trying to say is determine what gs is worth to you, if it's worth less than what they are charging don't buy it, otherwise buy it and know that your money was well spent.
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Lets take a look at the GS community:
For a studio that chooses to use GS because of its speed and ease, the fee is negligible.
For a part time hobbyist, it is negligible. They surely spend more one night at the pub or on the golf course or on that new model train.
For a student it is only ca. $10, that is 1/7 of a console game, or one movie ticket, or a budget Steam game, or a pack of cigs, beers etc. Quite doable and justifiable as it is a constructive investment in their future.
What about those that really can't afford the fee, but picked up game development to earn some extra cash? Here the aim is clearly to make money, so it is quite justified for GS to get their share, they are not a charity.
All in all, charging a fee forces the "undecided" to commit, which in turn has a positive impact on their approach to game development. Instead of jumping from tool to tool gripeing on the various forums, they will knuckle down and actually produce something.
One caveat: GS will need to honour the commitment of the users, by keeping up the pace they have shown in the last few months.
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