Business Model

Market Analysis

The platform’s games have been performing steadily, with an increasing player base and an expanding game market.

However, traditional game promotion channels have become prohibitively expensive and are losing effectiveness. The platform needs an innovative promotion model to attract new users.

Only by bringing in more users can the platform appeal to high-quality third-party games, fostering the healthy development of the entire ecosystem.

Revenue Sources

The Mercenary Alliance’s primary revenue comes from player purchases and transactions on the platform.

Key revenue streams include in-game purchases, service subscriptions, and virtual currency top-ups.

By consistently offering high-quality content and an engaging user experience, the platform attracts and retains a large, active user base, ensuring sustained income for mercenaries.

Profit Model

The Mercenary Alliance utilizes an innovative binding and revenue-sharing mechanism, rewarding those who promote the platform’s games by sharing revenue with mercenaries.

This model expands the user base and increases transaction volumes, creating a win-win scenario for both the platform and its promoters.

The straightforward promotion mechanism and high returns quickly attract large numbers of mercenaries and players, building a strong community that drives profitability.

Closed-Loop Ecosystem

The platform, developers, and mercenaries work together to create a closed-loop ecosystem.

Developers provide high-quality content that attracts players, while mercenaries recruit new users by sharing referral links.

As players enjoy a superior gaming experience, they increase their spending, which benefits the platform, mercenaries, and developers alike. This virtuous cycle continuously drives the platform’s growth, positioning it as a leader in a competitive market.

Platform Revenue Expectations

The platform’s revenue expectations are based on carefully allocated cost structures and revenue-sharing models:

1. Mercenary Revenue Sharing

   Mercenaries, as key contributors, receive a tiered revenue-sharing rate of up to 27%. This incentivizes active participation and effort, enhancing the platform’s overall engagement and user experience.

2. Game Developer Revenue Sharing

   Developers, as content creators, receive 23% of the revenue. This allocation encourages continuous innovation and content improvement, which attracts more players and boosts the platform’s competitiveness.

3. Platform Technical Support and Server Costs

   Technical support and server maintenance account for 15% of the revenue. These funds are used to maintain and upgrade the platform’s infrastructure, ensuring stable, secure, and high-quality operations.

4. Platform Customer Service and Operational Support

   Customer service and operational support account for 10% of the revenue. These funds are allocated for training and hiring professional customer service teams, enhancing service quality and user satisfaction.

5. Payment Channel Fees and Marketing Expense

   • Various payment channels require service fees for fund transfers and settlements. These fees account for 5% of the revenue and cover third-party payment platforms and related costs.

   • Marketing activities receive 5% of the revenue, covering advertising, brand promotion, and user acquisition initiatives. These efforts boost the platform’s visibility and user traffic.

6. Expected Platform Profit Margin

   After distributing costs and revenue shares, the platform’s expected profit margin is 15%. This profit will be reinvested in platform growth, distributed as dividends, and reserved for addressing future market changes and risks, ensuring sustainable development.

7. Revenue Expectation Clarification

   • Revenue expectation refers to the player's recharge turnover. Channel fees and tax portions need to be deducted, accounting for approximately 25% of the turnover.

   • For example, if a player recharges 5 US dollars, the actual amount received by the platform is only 3.75 US dollars. The allocation plan is calculated based on the actual amount received by the platform.

Through reasonable revenue distribution and cost control, the platform can not only stimulate the enthusiasm of all parties involved but also ensure its stable operation and continuous growth, providing users with high-quality services and experiences.