Intrinsic Monetization: Alternative Path to Lasting Engagement

This article discusses Intrinsic Monetization as a framework for F2P monetization strategy.

On top of that, the article offers detailed examples of how you could innovate with intrinsic directions, in unique ways, in your designs as well as what can in best way complement your systems — which I’m hoping will spark some innovative ideas for everyone regarding their future game prospects.

Intrinsic Monetization

As the gaming industry evolves, intrinsic monetization is a framework everyone should know and study more — for building sustainable success.

Unlike extrinsic models that rely on e.g., rewards-based systems most or external pressures like time-limited offers or competitive paywalls, intrinsic monetization aligns with players’ internal motivations, fostering genuine engagement and connection.

What is Intrinsic Monetization?

Intrinsic monetization integrates monetization into the core of the gameplay experience in ways that feel natural and fulfilling to players.

The key focus of it is here: Instead of interrupting play with external triggers, it enhances the game’s intrinsic value by tapping into players’ psychological needs.

One way to think about it is thinking a game with this strategy as an invest-able hobby for players, which might help in exploring this topic here further.

Core Principles of Intrinsic Monetization

🔹 Enhancing Social Connection:

Monetization options should amplify the game’s social aspects, such as enabling cooperative gameplay, customizable avatars for shared events, or exclusive co-op missions — it’s all about enhancing social connection with focus on creating opportunities for players to interact meaningfully with others while tying purchases into shared, cooperative, or social experiences.

Examples:

• Clan pooling mechanics for pooling resources to unlock shared benefits (e.g., perks or bonuses), fostering collaboration and a sense of a virtual community. Purchases can enhance these shared experiences rather than creating pay-to-win dynamics.

• Players visiting each other’s ‘playgrounds’, trading items, and hosting events — fostering a sense of a virtual community and presence of others. Monetization opportunities such as purchasing items to their playgrounds allow players to express themselves and enrich shared interactions without mandatory paywalls.

How these are intrinsic? They deepen the relational aspect of gameplay, fulfilling the psychological need for relatedness by making purchases feel like investments in shared social value.

🔹 Empowering Player Agency:

Players should feel in control of their spending choices, with e.g., options that align with their gameplay style, personal preferences and motivations.

Examples:

• Cosmetic skins that personalize avatars without affecting e.g., some elements of gameplay or competitive play.

• In some games talents and skills can be vectors to invest in through intrinsic strategies — in a way these vectors are designed over intrinsic direction fully on the gameplay side as well; to enhance gameplay experience and player journey rather than being able to skip the journey (this is sometimes on the grey area).

• Concept of allowing e.g., players to expand their game areas and investing functions inside them could translate into monetization opportunities such as themed expansions or cosmetics add-ons.

By offering choices that fit individual play-styles, monetization feels like an optional enhancement rather than a necessity — supporting players’ autonomy.

In terms of putting my examples to more deeper context over some games and segments, you can find more about what I’ve written about MMORPGs and their tie-ins to intrinsic monetization here (https://gamesalchemy.substack.com/p/mobile-mmos-innovation-opportunities):

In terms where Intrinsic Monetization as well as Intrinsic Strategies really can come into play with MMORPG segment, it’s a way to re-invent how these games would be made — as, extrinsic means aren’t anymore really working. See more below for reasoning.

According to Deconstructor of Fun and Sensor Tower, core games have lost their momentum due to “high monetization”, which is aligned with my take on e.g., MMORPG genre, where P2W, Player vs. Victim, and pay to progress aren’t anymore the best choices for monetization. Intrinsic approach could definitely be a way how you can uplift not just your game but moreover a total market segment / genre. (Source: https://www.deconstructoroffun.com/blog/2025/1/7/2024-prediction-audit).

🔹 Intrinsically Rewarding Engagement:

Progression systems tied to time spent in-game, loyalty, or collaboration create a sense of accomplishment and belonging. This is distinct from extrinsic motivators like leaderboards or consumable rewards.

Examples:

• Players earn mastery levels and emotes that highlight their achievements with specific characters. These non-intrusive features add a layer of skill recognition. Monetization can include e.g., exclusive skins that enhance the sense of individuality tied to these achievements.

• Rewarding consistent play with seasonal events and cooperative activities, encouraging shared experiences as well as putting emphasis on the journey where competences and skill matter.

• Game rewarding exploration and consistent play with progression systems that unlock e.g., characters or items. While players can spend to access to more content, the system inherently rewards loyalty and sustained engagement over other choices.

With these players feel they’re progressing through skill, time, or collaboration — rather than being pressured into spending. Optional monetization enhances but doesn’t disrupt the core experience and journey.

The Psychology Behind Intrinsic Monetization

Intrinsic monetization thrives by addressing key psychological drivers that keep players engaged:

🔹 Relatedness:

• We are innately social. Features that deepen social bonds — like team-based achievements, guild rewards, or collaborative missions — tap into this fundamental need.

🔹 Autonomy:

• Providing choices in how players interact with actual journey and monetized content fosters a sense of ownership and control. Whether through optional purchases or alternative progression paths, players feel respected.

🔹 Competence:

• Systems that reward skill, strategy, and collaboration enhance the player’s sense of mastery, making purchases feel like a meaningful extension of their success.

The magic in well-designed intrinsic systems is that it works properly when it aligns with above psychological needs. Unlike extrinsic systems that rely on external motivators (e.g., FOMO, paywalls, etc.), intrinsic monetization integrates naturally with what makes games engaging and enjoyable.

Expanding Gameplay Horizons with Intrinsic Systems — How You Can Innovate Further?

Intrinsic systems do exist in some properly designed games — thus, they might not alone be the best solutions in competitive markets or market segments.

To more effectively integrate intrinsic monetization with unique product positioning, game designers and product managers could innovate on these example areas (examples to give inspiration and references):

🔹 Dynamic Social Events:

Introducing collaborative features like treasure-hunting events or cooperative raids reinforces social bonds. Monetization can enhance these experiences through exclusive event passes, unique rewards, or shared bonuses for teams.

I’m discussing dynamics events like these, as an example, on my analysis over Boom Beach game here (https://gamesalchemy.substack.com/p/18-how-boom-beach-could-be-set-with):

🔹 Emergent Gameplay:

Mechanics that generate memorable, shareable moments — like unpredictable challenges or humorous interactions — encourage players to promote the game organically, enhancing its virality.

For monetizing this take, you can focus on offering themed props, gadgets, or skins that players can use creatively in these games. These props, gadgets, or skins support emergent gameplay by enabling players to create unique scenarios or structures.

Emergent direction could suit for many types of games — here’s as an example an article where I’m suggesting it for Stumble Guys’s reset for growth (https://gamesalchemy.substack.com/p/17-how-stumble-guys-could-be-set):

🔹 Proximity-Driven Engagement:

‘Virtual’ proximity systems provide inclusivity. Features that reward virtual closeness — such as buffs for allied players or co-op benefits — enhance social gameplay without excluding remote participants.

You can monetize these systems by selling e.g., group-specific bonuses or buffs, which activate when players are in certain proximity or working as a team. Monetization or trading economy also could be based on virtual convoy mechanics, and such.

Ideally these should be done so that meeting in real life is not necessary, as you can design systems and methods how you can make proximity closer — but, as an option, players could theoretically come closer.

Interest more about these? I cover social and proximity topics a bit on my article about use of Physiology and Psychology in game design here (https://gamesalchemy.substack.com/p/8-physiology-and-psychology-how-they):

Interested to find more ‘crazy unique ideas’ — see my article about ‘Unorthodox’ Product Strategies here (https://gamesalchemy.substack.com/p/19-unorthodox-product-and-positioning):

Social as a Complementary Layer:

While intrinsic monetization focuses on aligning gameplay with internal motivators, and relatedness is part of what I’m pushing out next, I believe social layers on top of intrinsic strategies build together a strong framework for deeper engagement through player connections and interactions.

Examples of social layers you can add to complement your intrinsic approach:

• Player Matching Systems: Advanced algorithms to connect players based on compatibility and/or objectives.

• Cooperative Progression: Shared goals that foster camaraderie and mutual investment.

• Social Ecosystems: Tools to form and sustain meaningful in-game relationships, which ensure that intrinsic monetization remains deeply integrated into the gaming experience.

Interested of learning more on about social — and what I call as Social 2.0? See my article that touches the topic a bit here (https://gamesalchemy.substack.com/p/8-physiology-and-psychology-how-they):

A Call to Action for Developers

Intrinsic monetization represents a shift toward a player-first approach that enhances rather than disrupts gameplay — and it can work great ways for core games where fully extrinsic, dopamine, adrenaline, etc. driven strategies have been used in the past (and which might not work anymore in all cases as you would wish them to work).

This will be double-posted here, but there’s a clear business-reason for why. According to Deconstructor of Fun and Sensor Tower, core games have lost their momentum due to “high monetization”, which is aligned with my take on e.g., MMORPG genre, where P2W, Player vs. Victim, and pay to progress aren’t anymore the best choices for monetization. Intrinsic approach could definitely be a way how you can uplift not just your game but moreover a total market segment / genre. (Source: https://www.deconstructoroffun.com/blog/2025/1/7/2024-prediction-audit).

By prioritizing connection, autonomy, and meaningful engagement-competences tie-ins, developers can create lasting ecosystems that benefit players and studios alike — and introduce hobby-like experiences more and more for players.

The future of gaming lies in meeting players where their motivations live. When done right, these strategies boast to healthy long-term engagement, high LTV and well-perceived monetization by your player base.

With intrinsic monetization and further innovation (over which I gave plenty of ideas above), we have the tools to craft experiences that are not only profitable but profoundly impactful.

Intrinsic Strategy isn’t just for experiences and monetization — and can be also used for anything from Marketing / Marketability approaches to further things in connection with the ‘whole funnel’. When done right, it could lead to magical results.