Karmafy Pricing Details
Karmafy Freemium Philanthropy makes giving to good causes fun, free and for everyone. Charitable giving is free to the end user, and is funded from a portion of in-game revenues contributed by the developer. This revenue share is allocated according to player selection and engagement.
Karmafy pricing is based on a user opt-in model, so the developer only gets charged for players who choose a good cause and engage with Karmafy. Typically, this ballparks around 5%-8% of game developers revenue depending on user engagement of good causes.
The good causes and Karmafy are funded with a revenue share model between the developer and Karmafy. A 10%+10% charity+platform fee is charged on these players. The cost therefore varies between games but it usually ends up around 5%-8% of game developers revenues after VAT and fees.
As all Karmafy games so far have seen an increase in revenue between 10%-40%, the 5%-8% in revshare cost should be fully covered by the increase in revenue resulting in a net positive for the game developer.
Developer Pricing Details
The revenue share is calculated as follows
- For players who do not pick a cause in the game or app, there is no revshare. The developer keeps 100% of the revenue.
- Players who pick a good cause become part of the revshare model. This means that players need to engage with Karmafy and the good causes for the developer to share part of their revenues. These are the active Karmafy users.
- Of the active Karmafy users:
- Game developer keeps 80% of the revenue
- 10% of revenue (after store fees) go to the charity pool. No fees or handling costs are deducted from the 10% that goes to the charities. Karmafy handles all such fees.
- 10% goes to Karmafy for running the platform and handling costs of charitable donations.
Game A has 100,000 players, each earning €1 in revenue from in-app purchases and ad revenue (after VAT and fees).
- 60,000 players do not pick a good cause. The game developer keeps their €60,000.
- 40,000 players pick a good cause. €40,000 in revenue should therefore be shared between game developer, good causes and Karmafy
- Of the €40,000 revenue
- The Developer keeps 80%, so €32,000
- 10% of €40,000 = €4,000. So €4,000 is added to the charity pool
- 10% of €40,000 = €4,000. So €4,000 goes to Karmafy for running the platform and handling costs of charitable donations.
So the game developer keeps €60,000 + €32,000 = €92,000. The direct cost to the developer in this example therefor is 8% (after VAT and store fees). However, the increase in revenue is expected to well exceed 8%, so game developer bottom line should be net positive.
The charitable distribution to each good cause is calculated at regular intervals for every game on the Karmafy Platform. The good causes receives their share of the charity pool for each of the games they are part of. A monthly or quarterly payment is then made if the total donation reaches a certain minimum amount.
Charity Distribution Details
At regular intervals, quarterly or monthly, the total charity pool for the given period for each game is distributed according to the number of Karmafy Points received by each of the good causes from players who chose to support them.
So for each game
- Total contribution to charity pool from this game is calculated for the period
- Total Karmafy Points for each of the good causes received form players who support them is added up for the period
- All Karmafy Points donated for the period are added up.
- Each good causes receives a part of the charity pool based on how many Karmafy Points the good cause received compared to the total received by all good causes.
The above is done for each game on the Karmafy Platform and the good causes each receive the sum of their part for each game.
Example for one game:
For a month, the total contribution to the charity pool of Game 1 was €4,000. Three charities received Karmafy Points. Charity 1 had 5 players each giving 100 points. Charity 2 had one player giving 300 points, Charity 3 had four players each giving 50.
- Total contribution to the charity pool is €4,000.
- Total Karmafy Points for
- Charity 1: 100+100+100+100+100 = 500
- Charity 2: 300
- Charity 3: 50+50+50+50 = 200
- Total donated Karmafy Points : 500 + 300 + 200 = 1,000
- For each good cause
- Charity 1: €4,000 * (500/1,000) = €4,000 * 0.5 = €2,000
- Charity 2: €4,000 * (300/1,000) = €4,000 * 0.3 = €1,200
- Charity 3: €4,000 * (200/1,000) = €4,000 * 0.2 = €800
The above is for a single game. This is repeated for every game on the Karmafy Platform and each charity receives the sum of contribution from each game.