This document discusses strategies for converting free-to-play game users into paying users by maximizing perceived virtual value and limiting access to that value. It outlines techniques like level locking, limited/premium items, chance-based systems, time savers/boosters, tuning difficulty curves, and using multiple currencies to incentivize spending and control the in-game economy. The goal is to create a sense of value, accomplishment and demand that drives a small percentage of engaged users to make purchases over the long term through optimized monetization strategies.

1. JiaShen Founder Social Game StrategiesOne way to look at it

2. RockYou Overview RockYou, Inc. Engaging the world through social applications! 2007 2008 2009 2010 Reach Applications Social Gaming Network Installs Brand Integration RockYou’s evolution as the leader in Facebook Marketing.

3. RockYou: Top 4 Reach in the US Source: comScore Media Metrix Key Measures – with Unified Sites, May 2010 Source: Quantcast U.S. Network Rank, May 2010

4. Agenda Introduction Creating Virtual Value Converting it to Paying Users Improving Monetization Conclusion Q&A

5. Show me the funnel! Creating Virtual Value

6. Collision of Worlds Conventional & Casual Games Entertainment Engagement Online Games Long term engagement Monetization Performance Marketing User acquisition

7. Understanding the Free2Play Space User acquisition easier, but getting harder Users have longer lifespan Stronger sense of community for reengagement Paying user percentage lower Its all casual

8. Maximize paying users On Average, 2-5% Users are Paying 10-15% is High Percentage 50% of Purchasers are repeat customers People who do spend, spend a lot

9. Virtual Value I Want it!

10. Conventional Game Value Centered around entertainment content proposition More like TV and Movies Content comes in big chunks DLC is its current incarnation More hit or miss Think Halo, Starcraft, GTA

11. Social and Online Games Flipped on its head Entertainment / game is foundation Content is bite size Value creation is persistent Tuneable, but can break

12. Bite Sized Virtual Value Progress / Status / Level Decoration & Expression Skills Items Time

13. Value converts to Money

14. Duh I know Time = Money

15. Time Creates Desire

16. Limited and Premium Items Premium You just gotta pay to play Limited Get it now or you’ll never see it again. Maybe Consumables Now you have it, now you don’t Warstorm Social City Happy Island

17. Level Locking Incentives to continue playing Visible Goals to Accomplish Allows Regulation Item Release Structure Pace Power-Users Keep Them Interested Providing the Hope of Future Entertainment

18. Chance Collectibles Extend perceived value Roulette Pacing Scheduling of new feature releases Fits Power & Casual users First ones free

19. Time Savers / Boosters Quick Refill Instant Gratification Time Boost Better Balance Speed it up

20. Level Tuning New User Flow Level up a new user quickly Accomplishment Value Instant gratification Growth Curve Dynamics Maintain pacing to fit hardcore and casual users, as well as new feature release cycles Keep them Interested User Loss Monitor user levels and tweak according to user drop off Throw users into a “lifetime” to earn value Nightclub City Nanosiege

21. Create difficulty ramp and barriers Determine acceptable rate of increase Create many different interacting barriers Allows for value creation in the future Harder for exploitation of one state Time with perceived value creates demand

22. Checks and Balances Create different vectors of value to balance Always have a “limited reagent” Never create permanent buffs Monitor value acquisition rate Reduce Inflation and Boredom

23. Multiple Currencies One currency for game-play functionality and one currency to the dollar Control over in-game economy Standard Currency eventually devalues. Secondary Currency allows application to continuously monetize Cross-application functionality (FB Credits) Avoids potential loss of paying customers Game-play loopholes Bugs Dual Currencies – Created to combat in-game inflation

24. Value is the incentive Maximize % of Paying users Design Perceived Value Limit access to value Creates demand Raises retention because user derives value

25. Thank You