Four revenue mechanics, and the metric that tells you whether each one is working.
Rewarded video, interstitials and banners earn per impression, so revenue depends on fill rate, eCPM and how many ad views a session can carry without hurting retention. Mediation sets the order in which networks bid.
Ad monetization and mediation
Consumables, unlocks and subscriptions turn engagement into revenue directly. Price points, offer timing and what a subscription actually delivers each period decide whether buyers renew or churn.
In-app purchases and subscription design
Store commissions, tax handling and payout thresholds sit between gross bookings and what you keep. Payout timing matters for small teams paying contractors or buying user acquisition.
Payments, payouts and store fees
ARPU, ARPPU, LTV and payback period connect spending to returns. Without them, a rising revenue line can hide acquisition costs that outrun what each player brings in.
Unit economics and revenue metricsPick an app revenue model by answering four questions first: who pays, how often, and what you can maintain. A fit-first guide for indie devs.
Daniel R. Whitaker ·
Microtransactions explained for indie devs: how in-game purchases are structured, what to sell, and the retention and revenue trade-offs behind each model.
Set up in-app purchases in the right order: developer account, tax and banking, receipt verification, product IDs, then pricing and refunds.
A battle pass explained: season length, free vs premium tracks, how levels unlock rewards, and why players buy a known quantity for less than a full game.
ARPU is total revenue divided by active users. Learn the formula, what counts as revenue and users, and how to compare cohorts on one number.
Mobile game monetization explained: IAP, rewarded ads, subscriptions and paid downloads, plus the metrics to track and the mistakes that cost revenue.
You can have a million downloads and still lose money. Scale does not fix a broken model; it multiplies whatever your unit economics already say, good or bad....
