Social Gold: How to Launch your own Currency

Launching Your Virtual Currency Vikas Gupta Co-Founder/CEO, Social Gold

Virtual Currency Platform http://getsocialgold.com/ “If I were to build the Linden economy again, I would do it on the Social Gold platform.” - John Zdanowski, ex-CFO, Linden Labs

Overview • Virtual Currency: What, Why • Part 1: Currency and User Experience • Part 2: Building it • Part 3: Optimize, Analyze • Part 4: Make Money • Part 5: Create an Economy

What is currency?

What is currency? “Labour is the real measure of exchangeable value. “Wealth is power of purchasing labour.”

What is currency? “Labour is the real measure of exchangeable value. “Wealth is power of purchasing labour.” Value in your economy is in your goods. Currency is a means, not the end.

“Real World” Examples

“Real World” Examples Goods, Services

“Real World” Examples Goods, Travel, Services Luxury

“Real World” Examples Goods, Travel, Services Luxury Entertainment

“Real World” Examples Goods, Travel, Services Luxury Entertainment Entertainment

“Virtual Currency” Examples

“Virtual Currency” Examples Goods

“Virtual Currency” Examples Goods Entertainment

“Virtual Currency” Examples Goods Entertainment Games

“Virtual Currency” Examples Goods Entertainment Games Flirting

Why Virtual Currency?

Why Virtual Currency? • Separate “Value” from “Money”

Why Virtual Currency? • Separate “Value” from “Money” • Virtual currency is “cheaper” than “money”

Why Virtual Currency? • Separate “Value” from “Money” • Virtual currency is “cheaper” than “money” • Train User Behavior

Why Virtual Currency? • Separate “Value” from “Money” • Virtual currency is “cheaper” than “money” • Train User Behavior • Economy around user generated content

How to introduce Virtual Currency?

Part 1: User Experience

Part 1: User Experience • Currency must be integral to user experience

Part 1: User Experience • Currency must be integral to user experience • “Experience Economy”

Part 1: User Experience • Currency must be integral to user experience • “Experience Economy” • Users pay for a memorable experience

Example: A Farming Game Focus on Experience (Goods)

Free Currency

Labour Free Currency

Labour Free Currency Currency

Part 2: How to Build

Part 2: How to Build • Balance + Transactions

Part 2: How to Build • Balance + Transactions • How “loose” or “correct” you want your ledger to be?

Part 2: How to Build • Balance + Transactions • How “loose” or “correct” you want your ledger to be? • Auditable (Sum of transactions = balance)

Part 2: How to Build • Balance + Transactions • How “loose” or “correct” you want your ledger to be? • Auditable (Sum of transactions = balance) • Repeatable (Replay the history)

DIY or Partner

DIY or Partner • Platforms like Social Gold available

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency • Ensure cost per transaction is low

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency • Ensure cost per transaction is low • Compromise real time transactions

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency • Ensure cost per transaction is low • Compromise real time transactions • “Eventually” auditable/repeatable

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency • Ensure cost per transaction is low • Compromise real time transactions • “Eventually” auditable/repeatable • Problems appear at large scale

DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency • Ensure cost per transaction is low • Compromise real time transactions • “Eventually” auditable/repeatable • Problems appear at large scale • But lot easier to ﬁx at small scale

Part 3: Optimize

Part 3: Optimize • What should you measure?

Part 3: Optimize • What should you measure? • How do you optimize?

Part 3: Optimize • What should you measure? • How do you optimize? • Good Metrics are actionable

Number of transactions is a good measure of the health of your economy

Measure Sources vs Sinks

Effective Channels

Price Testing

Revenue Drivers

DIY or Partner

DIY or Partner • Platforms like Social Gold can do it for you • Leverage a large suite of tools and expertise

DIY or Partner • Platforms like Social Gold can do it for you • Leverage a large suite of tools and expertise • Measure everything

DIY or Partner • Platforms like Social Gold can do it for you • Leverage a large suite of tools and expertise • Measure everything • Metrics are useful when data set is large

Part 4: Making Money

Part 4: Making Money 1. Engagement before money

Part 4: Making Money 1. Engagement before money 2. Value is perceived from goods, not currency

Part 4: Making Money 1. Engagement before money 2. Value is perceived from goods, not currency 3. Understand your user demographics

User Experience

User Experience Weave payments into your user experience!

User Experience Weave payments into your user experience! e.g., in-Flash Payments by Social Gold

Payment Methods

Payment Methods • Credit cards drive majority of the revenue

Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international)

Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international) • Pre-paid cards (cash paying users)

Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international) • Pre-paid cards (cash paying users) • Incentivized Offers (subsidized by advertisers)

Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international) • Pre-paid cards (cash paying users) • Incentivized Offers (subsidized by advertisers) • Alternate local methods

Subscriptions

Subscriptions • Long term commitment

Subscriptions • Long term commitment • Demonstrate Economic value

Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay

Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay • Don’t limit your revenue

Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay • Don’t limit your revenue • Combine it with currency

Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay • Don’t limit your revenue • Combine it with currency • DIY or partner:

Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay • Don’t limit your revenue • Combine it with currency • DIY or partner: • Social Gold, Paypal, Zong

Part 5: Making it an Economy

Part 5: Making it an Economy • Who controls goods and prices?

Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar

Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar • User generated content

Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar • User generated content • Prices determine by users (market)

Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar • User generated content • Prices determine by users (market) • Trade against “real” currency

Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar • User generated content • Prices determine by users (market) • Trade against “real” currency • “Virtual” Labour creates “real” wealth

Tools • Potentially inﬁnite catalog

Tools • Potentially inﬁnite catalog • Catalog for UGC (user data, history)

Tools • Potentially inﬁnite catalog • Catalog for UGC (user data, history) • User to User transactions

Tools • Potentially inﬁnite catalog • Catalog for UGC (user data, history) • User to User transactions • Currency trade, Secondary markets

Tools • Potentially inﬁnite catalog • Catalog for UGC (user data, history) • User to User transactions • Currency trade, Secondary markets • Deep Analytics and Fraud Control

Summary

Summary • Currency is a means, not the end

Summary • Currency is a means, not the end • Engage before you monetize

Summary • Currency is a means, not the end • Engage before you monetize • Build infrastructure to scale at low cost

Summary • Currency is a means, not the end • Engage before you monetize • Build infrastructure to scale at low cost • Actionable Metrics

Summary • Currency is a means, not the end • Engage before you monetize • Build infrastructure to scale at low cost • Actionable Metrics • UGC creates an “economy”

Virtual Currency Platform http://getsocialgold.com/ vikas@jambool.com

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