In-App / In-Game Purchases

Model Summary

In-App / In-Game purchase revenue is realized when users purchase something from within your application or game. The quantity of purchases will be dependent on the level of engagement users have with your app or game. To get a better sense of the users we’re talking about, it is helpful to think of the new users you’re forecasting from the “Customers” page as the broadest audience of users that have ventured all the way through your marketing, or sales, funnel.

For instance, the users forecasted in your customer acquisition channels may have downloaded your app, or signed up for your site, but that doesn’t mean all of them will become actively engaged, or more commonly known as Monthly Active users (MAU).

Monthly Active Users are the people that not only download your app, or sign up for your site, but they login at least once per month. This is the group of users that you will monetize through purchases.

Monthly Active Users will be counted cumulatively, meaning that for each month you forecast new customers (from the “Customers” page) they will be added to the pool of existing monthly users (less churn). In this way your active user base will constantly grow as long as you continue to add new MAU faster than the older users are leaving.

Users will need to be logged in and using your app or game (Daily Active Users) for purchases to take place.

Launch

The month you plan to make this source of revenue available to customers.

Signups at Launch

The number of users that may have shown interest by signing up for your app, but have not yet converted to monthly active users (MAU).

Example: If you have 5,000 signups the moment you launch your app, and you have a 10% MAU conversion rate, then you will have 500 MAU at the beginning of the first month you launch this revenue stream.

MAU Conversion (% of New Users)

The % of users coming from your customer acquisition channels (the “Customers” page) that convert to Monthly Active Users (users that login at least once per month). 

Example: If you forecast 1,000 new users from your customer acquisition channels, and have an MAU conversion rate of 10%, then you are adding 100 new users to your active user base (excluding churn) for the month.

DAU (% of MAU)

The % of Monthly Active Users that log into the app on any given day throughout the month.

Paying Users (% of DAU)

The % of users logged in on any given day that also make an in-app purchase.

Revenue per Paying DAU

The average purchase size per Daily Active Users making a purchase.

Churn

The % of MAU that leaves your active user base and no longer logs into your app or game.

Example: If you have 5,000 MAU at the beginning of the month, and a churn rate of 5%, then you will have 250 less MAU at the end of the month (excluding any new users you may have added during that same month).

# of Days to Get Paid

The number of days between a user making a purchase and the day the money is available in your bank account.

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Transaction Fees

Transaction fees as a % of total sales for this revenue stream (if none enter zero).