"The Intricacies of Sweatcoin and Gacha Games: A Unique Perspective on Monetization"


Hatched by Glasp

Aug 12, 2023

4 min read


"The Intricacies of Sweatcoin and Gacha Games: A Unique Perspective on Monetization"

Sweatcoin, a popular fitness app, has managed to raise an impressive $5.7 million in a seed round of funding. The app operates by limiting the number of coins users can earn in a day, and charges a fee if they wish to increase their earning potential. This clever business strategy not only generates revenue for Sweatcoin, but also creates a sense of exclusivity for those who are eligible for the marathon offers provided by the app.

The primary way that Sweatcoin makes money is through the use of these earned coins. The app offers two types of offers: daily partner offers and marathon offers. With a sufficient number of Sweatcoins (around 10-50), users can choose to use them to purchase daily offers, discounts, or trials from partner companies. Alternatively, users can accumulate a larger amount of Sweatcoins (around 20,000) to purchase actual products such as an iPhone X or Samsung TV, or convert them into fiat currency. Sweatcoin operates on a business model similar to that of Groupon, partnering with various brands to provide offers and discounts to its users. These brands pay Sweatcoin for the opportunity to be featured on the app, although the specifics of the partnership contracts may vary.

In addition to the revenue generated from featuring partner brands, Sweatcoin also earns money through in-app advertisements. However, it is worth noting that the app's constant tracking of user location throughout the day can have a significant impact on battery life. This is an important consideration, as users may be deterred from using the app if it drains their battery too quickly.

Now, let's shift our focus to the world of gacha games. In Japan, gacha games have become immensely popular and profitable. The term "gacha" refers to a gameplay mechanic where players spend virtual currency to obtain random virtual items. These games have faced criticism for their addictive nature and the potential for players to spend excessive amounts of money.

A former social game developer sheds light on the allure of gacha games. According to a hypothesis, humans have evolved to find pleasure in uncertain activities, with a 30% success rate being particularly stimulating. Gacha games tap into this instinctual pleasure circuit by providing a prepaying sensation of success when players believe they have a 30% chance of winning. In other words, gacha games monetize this human instinct for pleasure.

The developer also touches upon the changing landscape of social games. While social games used to be a platform for innovative game models and designs, this seems to be shifting. The focus has moved away from social games and toward consumer games, which tend to prioritize creativity and originality. Social games, on the other hand, are often created based on customer reactions and feedback.

This distinction in game development approaches can be attributed to the differing intentions of the creators and the responses from players. Consumer games are designed to elicit specific responses from players and are crafted as devices to engage and entertain humans. They tap into our biological mechanisms of finding pleasure and enjoyment, similar to the incentives we experience in our daily lives. These essential experiences, such as the joy of growth or the repeated enjoyment of playing, are distilled and refined into entertainment forms like games.

The difference between social games and consumer games lies in the balance between the intentions of the creators and the responses from players. In social games, there is a greater emphasis on the reactions and feedback from players, while consumer games tend to be more focused on the creative intentions of the developers.

Now that we have explored the monetization strategies of Sweatcoin and the psychology behind gacha games, let's discuss three actionable pieces of advice that can be applied to various business models:

  • 1. Understand your target audience: Both Sweatcoin and gacha games succeed by appealing to the intrinsic desires and instincts of their respective user bases. By understanding the motivations and preferences of your target audience, you can tailor your product or service to meet their needs and generate revenue.
  • 2. Create a sense of exclusivity: Sweatcoin's business strategy of limiting the number of coins users can earn per day creates a sense of exclusivity for those who are eligible for the marathon offers. This can be applied to other business models by offering limited-time promotions or rewards to a select group of customers, creating a sense of scarcity and value.
  • 3. Balance creativity and user feedback: While consumer games prioritize creativity and originality, social games rely heavily on user feedback and reactions. Striking a balance between these two aspects can result in a successful and engaging product. Incorporate user feedback into your creative process, while also maintaining a clear vision and direction for your business.

In conclusion, Sweatcoin and gacha games showcase unique monetization strategies that tap into human instincts and desires. Understanding your target audience, creating a sense of exclusivity, and finding the right balance between creativity and user feedback are key factors to consider when implementing successful business models. By applying these principles, businesses can generate revenue and provide enjoyable experiences for their customers.

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