Software Ideas Preview Newsletter | Issue #70! ⭐

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Software Ideas

Preview Newsletter. Issue #70

OPPORTUNITY #1: In-Game Currency

Level 2 - Indie Hacker
As Unity puts it, "Freemium has won."

Gaming, particularly mobile gaming, has fundamentally changed over the past ten years. Customers used to purchase games for a single price up-front. But it takes a lot to convince mobile gamers to pay up-front for a game.

This led to a revolution in monetization strategy - what if we give away the game for free, eliminating the friction of paying for the game, and allow users to pay us over time instead?

And as this strategy has taken over the mobile gaming market, so has software that enables companies to easily build these monetization strategies into their applications.

Perhaps the most well-known solution is TapJoy.
TapJoy is a comprehensive app monetization solution that offers advertising features in combination with in-game currency.

Its most notable feature is its "offerwall" (pictured above), which lets game players watch a video, download another app, or complete a survey in exchange for in-game currency.

There are several innovative changes going on in this industry right now:

  • Epic Games v. Apple: Epic Games has sued Apple due to its anti-competitive rules in the App Store - forcing developers to pay Apple 30% of all in-app payments, and removing apps from the store that use a different payment solution.
     
  • NFTs in Gaming: Some companies are building platforms to enable crypto directly within games and applications. While this sounds cool, there are a few hiccups that are tricky to solve.
     
  • Competitive Monetization: Think tournaments, leagues, and live events. For large games, this monetization strategy can lead to up to 4x revenue growth, according to Skillz, the leading company in the space.
In this opportunity, we'll look closer at how the down-market, small app developers are able (or struggling) to build their own monetization strategies into their products. 

While managed solutions like PaymentWall exist for managing virtual currencies, they lack comprehensive documentation and aren't very developer-friendly. 

And although TapJoy is the go-to market solution, it focuses heavily on advertising-based revenue, which means it's not a great fit for everyone.

This puts indie game devs in a tough spot - take the time to build in-app monetization themselves, or spend on a solution that's not built with them in mind?

Want the full market report?

Here's what we cover in the premium newsletter (8,595 words):
  • Details into the FTC's investigation into TapJoy, and why that matters for new players in the industry.
     
  • Paddle's IAP product, and why it could fundamentally transform the Apple App Store.
     
  • More details on NFTs and crypto in mobile gaming.
     
  • How to build an API-as-a-service product for creating, managing, and securely handling virtual currencies for mobile app developers.
     
  • Strategies for marketing the software: Community Outreach, Content Marketing strategies, and more!
     
  • And much more!

What else do I get?

A Software Ideas membership is much more than a single newsletter. You'll also get:
  1.  📝 Access to the newsletter archive, with over 200 in-depth market reports and opportunities, just like this one!
     
  2. 💡 Early access to The Foundation course, an in-progress video series focused on how to validate an idea and get your first $2,000 in MRR.
     
  3. 💰 Over $50,000 in discounts for starting your next software company, through our partnership with Secret.
     
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