The Revenue Elasticity Principle
In-App Purchases (IAP) function as a high-friction, high-reward vector. Each percentage point of IAP engagement generates 10 revenue points, but only when players perceive distinct value. Over-monetization through ads (Ad Frequency) creates friction, deducting 5 points per unit.
- ✓ Target 60+ IAP for sustainable indie revenue
- ✓ Keep Ad Frequency under 40 for retention