What is a Sponsorship?
Sponsorship - A deal made between a publisher and a developer in which the publisher pays to have their branding/ads in one of the developer's games. Usually this is a Primary or Exclusive license.
Publisher - For web games: a Publisher is usually an entity who licenses or sponsors games in order to drive traffic to its site(s). Or, who wants to license content to be hosted on their site.
For mobile games: a Publisher is usually an entity who wants to have the right to publish a game under its brand name to mobile marketplaces, and receive some of the revenue the game generates.
Note: many times the terms "Publisher" and "Sponsor" can be used interchangeably.
Why would someone want to publish a game?
Money, of course! The traffic that a published game produces or retains for the publisher's site makes them a lot of money. If a publisher offers the developer X dollars for a game, then they believe that the game will eventually make them more than that amount in return.
To be fair, the publisher has invested a lot of time and effort in creating their infrastructure and/or distribution channels. They are often in a much better position to capitalize on a game than the developer would be. That's why a sponsorship can be very beneficial to both the game developer and the publisher.
How much money?
There are a number of factors involved in determining the amount of money spent on a sponsorship. This makes it difficult to provide any kind of meaningful estimate for any particular game.
Here are the main factors that determine the price of a sponsorship:
- details of the license
- amount of work needed on the part of the developer
- level of exclusivity for the publisher
- number of interested publishers
- quality of the game
FGL has helped developers get deals for hundreds of dollars and for hundreds of thousands of dollars. It all depends on the factors listed above and the current market conditions.