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Allods Monetization:
designer’s experience
    Ilya Maryasov, game designer, Allods Team




                    www.mail.ru
What is Allods


• Allods Online is a F2P MMORPG in an original
  universe. Commercial launch: October 2009




                        www.mail.ru              2
Economy Flowchart
Economic System


•   Multiple currencies
•   Several models of item ownership (BoP, BoE, BNone)
•   Open market of in-game goods with a lot of participants
•   Internal convertible currencies




                               www.mail.ru                    4
Currency Exchange in action
30.5




25.5




20.5




15.5




10.5




 5.5



 20-30k transactions per day
                      games.mail.ru        5
Social and Economic Value of Runes

Any system needs economic regulations. In
Allods runes regulate the economy. Their
mechanics allow to remove the excess any kind
of currency: game currency, premium or promo




                     www.mail.ru                 6
Promo Currency
Main feature of the promo currency (“premium
crystals”): it is account-bound.
• Obtained during special events or by
  converting normal real-money currency.
• Prevents from economy exploits when
  bonuses and gifts are given away.
• Ensures that the currency will be used only by
  player for whom it was intended.
• Has lower liquidity.
• Requires additional support in the IM
  assortment
                      www.mail.ru                  7
Audience Interaction




         www.mail.ru   8
Customer Behavior
                      Demand generated
                        Need more bag space

                       Search for solution                 Create twink
Expand bag   Expand bank deposit           Discard items
                                                            character
                         Choosing a tool
                            IM purchase


                        Category search

                      Subcategory search

                           Item search

                         Choosing item

                            Purchase

                             www.mail.ru                                  9
Customer Behavior and Conversion

                                                                          100.0
  Demand generated
                          25.0
 Purchase decision

Choosing a tool          22.5


Category search        20.3

Subcategory search18.2

 Item search      16.4

Choosing item 14.8

Purchase        13.3

  0        10     20          30   40     50          60   70   80   90   100



                                        www.mail.ru                             10
Item Shop Progress

• Customer thinks of item categories instead of
  specific positions.
• Customer does not know the assortment.
• Customer has demands they are unaware of.
• Customer does not think in “bank notes”.




                     www.mail.ru                  11
Assortment Management Basics

• Convenience – fast access to required
  category or goods

• Transparency – logical assortment structure

• Clarity – descriptions of goods and categories




                      www.mail.ru                  12
Assortment management




       games.mail.ru    13
6 customer groups
• Utility-oriented

• Fashion-oriented

• Reliability-oriented

• Variety-oriented

• Pastime-oriented

• Emotion-driven

(С) McDonald
                         www.mail.ru   14
Item Sales
• Every month several positions are sold at a
  discount
• Usually not revenue drivers
• Revenue driver sale is followed by
  overwhelming demand
• Brings little to none revenue but generates
  hype and news topic
• Allows to reveal overpriced goods

     Audience:

                      www.mail.ru               15
Currency Sale

• Real money currency (“Crystal”) is on sale
• Sets expectations among consumers
• Increases revenues significantly: +10-15% to
  monthly revenue

     Audience:




                     www.mail.ru                 16
“Magic Lamp”

• Event encouraging non-paying users to pay
• Gambling elements
• Individual offer
• Without a character-bound currency, results in
  incorrect behavior pattern (“army of low-level
  twinks to receive bonus”)
• +5-10% to monthly revenue

     Audience:

                     www.mail.ru               17
Box of Crystals

• Temporary “money sink” event for premium
  currency
• Gambling mechanics
• Binding status must be transferred to
  generated bonus
• +2-5% to monthly revenue

     Audience:


                     www.mail.ru             18
Individual Offers

•   Special kind of crystal sale
•   Targeted only at active audience
•   Gives benefits to certain player categories
•   Accepted negatively

       Audience:




                         www.mail.ru              19
“Happy Million”

• Special kind of crystal sale
• Limited offer
• Sells a given amount of currency in short
  period




     Audience:


                      www.mail.ru             20
Sales Points

• Any sale affects future purchases.
• Sales on a regular basis form behavior
  patterns.
• Bonus must be bound to character.
• Any giveaways stimulate incorrect behavior
  patterns.
• Available payment methods greatly affect
  sales.



                      www.mail.ru              21
Lottery Events

• Run every month
• Why players are excited:
  – Limited-time sale
  – Exclusive content


• Any gambling event decreases lifetime of a
  customer

     Gambling audience:

                        www.mail.ru            22
Lottery Models Tested

• Zero lottery – on large numbers average
  cost of all dropped items equals to the
  price of all lottery boxes
• Zero sale – average cost of dropped
  items is equal or higher than the lottery
  box price at each attempt
• Exclusive sale – there is only exclusive
  content in the lottery box, it cannot be
  acquired from other sources, but price
  of this content cannot be determined

                      www.mail.ru             23
Lowering Attrition Generated by
             Gambling
• Collector’s coins– each opened box gives one
  coin used to purchase base-level exclusive
  prizes. This is positively accepted.
• Rewards are still useful after single use – non
  binded rewards, players can stack few lesser
  reward to get more valuable prize
• Each attempt of lottery activity is getting user
  closer to top-prize. No “common” fillers-goods
  in the box


                      www.mail.ru                24
Increasing Attraction of Gambling

• Grand Prix – players who opened a certain
  number of boxes automatically participate in
  daily lottery
• Jackpot - each opened box adds some gold to
  Jackpot pool. There is a chance to win the
  whole pool every time a player opens a box.




                     www.mail.ru                 25
Feedback

For each event, the following feedback must be
collected and analyzed:
    – Audience impressions
    – Statistics
    – Experience of playing developers
    – Sales before, during and after the event
It allows to make a conclusion about customer behavior
and results of the event.




                         www.mail.ru                 26
Conclusion

Main monetization steps:
• Generate a demand
• Provide the tools to satisfy it
• Cover all participants by these tools
• Provide reasons to re-evaluate demands
• Collect and analyze feedback and statistics




                      www.mail.ru               27
Thank you!

Ilya Maryasov
Game Designer, Allods Team
maryasov@corp.mail.ru



                   games.mail.ru   28

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Allods F2P Monetization

  • 1. Allods Monetization: designer’s experience Ilya Maryasov, game designer, Allods Team www.mail.ru
  • 2. What is Allods • Allods Online is a F2P MMORPG in an original universe. Commercial launch: October 2009 www.mail.ru 2
  • 4. Economic System • Multiple currencies • Several models of item ownership (BoP, BoE, BNone) • Open market of in-game goods with a lot of participants • Internal convertible currencies www.mail.ru 4
  • 5. Currency Exchange in action 30.5 25.5 20.5 15.5 10.5 5.5 20-30k transactions per day games.mail.ru 5
  • 6. Social and Economic Value of Runes Any system needs economic regulations. In Allods runes regulate the economy. Their mechanics allow to remove the excess any kind of currency: game currency, premium or promo www.mail.ru 6
  • 7. Promo Currency Main feature of the promo currency (“premium crystals”): it is account-bound. • Obtained during special events or by converting normal real-money currency. • Prevents from economy exploits when bonuses and gifts are given away. • Ensures that the currency will be used only by player for whom it was intended. • Has lower liquidity. • Requires additional support in the IM assortment www.mail.ru 7
  • 8. Audience Interaction www.mail.ru 8
  • 9. Customer Behavior Demand generated Need more bag space Search for solution Create twink Expand bag Expand bank deposit Discard items character Choosing a tool IM purchase Category search Subcategory search Item search Choosing item Purchase www.mail.ru 9
  • 10. Customer Behavior and Conversion 100.0 Demand generated 25.0 Purchase decision Choosing a tool 22.5 Category search 20.3 Subcategory search18.2 Item search 16.4 Choosing item 14.8 Purchase 13.3 0 10 20 30 40 50 60 70 80 90 100 www.mail.ru 10
  • 11. Item Shop Progress • Customer thinks of item categories instead of specific positions. • Customer does not know the assortment. • Customer has demands they are unaware of. • Customer does not think in “bank notes”. www.mail.ru 11
  • 12. Assortment Management Basics • Convenience – fast access to required category or goods • Transparency – logical assortment structure • Clarity – descriptions of goods and categories www.mail.ru 12
  • 13. Assortment management games.mail.ru 13
  • 14. 6 customer groups • Utility-oriented • Fashion-oriented • Reliability-oriented • Variety-oriented • Pastime-oriented • Emotion-driven (С) McDonald www.mail.ru 14
  • 15. Item Sales • Every month several positions are sold at a discount • Usually not revenue drivers • Revenue driver sale is followed by overwhelming demand • Brings little to none revenue but generates hype and news topic • Allows to reveal overpriced goods Audience: www.mail.ru 15
  • 16. Currency Sale • Real money currency (“Crystal”) is on sale • Sets expectations among consumers • Increases revenues significantly: +10-15% to monthly revenue Audience: www.mail.ru 16
  • 17. “Magic Lamp” • Event encouraging non-paying users to pay • Gambling elements • Individual offer • Without a character-bound currency, results in incorrect behavior pattern (“army of low-level twinks to receive bonus”) • +5-10% to monthly revenue Audience: www.mail.ru 17
  • 18. Box of Crystals • Temporary “money sink” event for premium currency • Gambling mechanics • Binding status must be transferred to generated bonus • +2-5% to monthly revenue Audience: www.mail.ru 18
  • 19. Individual Offers • Special kind of crystal sale • Targeted only at active audience • Gives benefits to certain player categories • Accepted negatively Audience: www.mail.ru 19
  • 20. “Happy Million” • Special kind of crystal sale • Limited offer • Sells a given amount of currency in short period Audience: www.mail.ru 20
  • 21. Sales Points • Any sale affects future purchases. • Sales on a regular basis form behavior patterns. • Bonus must be bound to character. • Any giveaways stimulate incorrect behavior patterns. • Available payment methods greatly affect sales. www.mail.ru 21
  • 22. Lottery Events • Run every month • Why players are excited: – Limited-time sale – Exclusive content • Any gambling event decreases lifetime of a customer Gambling audience: www.mail.ru 22
  • 23. Lottery Models Tested • Zero lottery – on large numbers average cost of all dropped items equals to the price of all lottery boxes • Zero sale – average cost of dropped items is equal or higher than the lottery box price at each attempt • Exclusive sale – there is only exclusive content in the lottery box, it cannot be acquired from other sources, but price of this content cannot be determined www.mail.ru 23
  • 24. Lowering Attrition Generated by Gambling • Collector’s coins– each opened box gives one coin used to purchase base-level exclusive prizes. This is positively accepted. • Rewards are still useful after single use – non binded rewards, players can stack few lesser reward to get more valuable prize • Each attempt of lottery activity is getting user closer to top-prize. No “common” fillers-goods in the box www.mail.ru 24
  • 25. Increasing Attraction of Gambling • Grand Prix – players who opened a certain number of boxes automatically participate in daily lottery • Jackpot - each opened box adds some gold to Jackpot pool. There is a chance to win the whole pool every time a player opens a box. www.mail.ru 25
  • 26. Feedback For each event, the following feedback must be collected and analyzed: – Audience impressions – Statistics – Experience of playing developers – Sales before, during and after the event It allows to make a conclusion about customer behavior and results of the event. www.mail.ru 26
  • 27. Conclusion Main monetization steps: • Generate a demand • Provide the tools to satisfy it • Cover all participants by these tools • Provide reasons to re-evaluate demands • Collect and analyze feedback and statistics www.mail.ru 27
  • 28. Thank you! Ilya Maryasov Game Designer, Allods Team maryasov@corp.mail.ru games.mail.ru 28