this post was submitted on 31 Mar 2024
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I don't get why micro transaction are never micro transactions. If a cosmetic item/feature in a game or sth. like discord would be 50ct up to a Euro, I would here and there buy sth. But they always want 5-15€ and that isn't money I'm willing to spend. Take Signal for example 5 € for a badge for 30 days is just stupid. I recently donated 20 euros still 30 days. The thing is I don't care for the badge but I think it could be beneficial to promote the ability to donate via the badge but the system they use, is really stupid.
I think the reason they’re not micro has to do with whales. I bet the whales outbuy normies at a rate that means companies make more selling 1/10th the volume, for 20x the price. The whales go hard. Did you hear that some games will task an artist with creating game-skins for a single person, because they know they can get that person to buy even at a really high price
it's also about sustainable income. 50c one time purchases are garbage for the bottom line, subscriptions look amazing to investors because it's effectively guaranteed income that you can assume a current subscriber will remain subscribed until the service shuts down.
Think you’re right.
Founders get told:
Raise your prices. Push them up 2-3x or something, and lose 10% of your customers. Those you lose are generally your worst ones. Huge net win.
a big part of the issue with micro-transactions are the payment processors.
visa and MasterCard basically own it, at some part of the process.