Social Gold: How to Launch your own Currency

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What is Virtual Currency?
Why should you introduce Virtual Currency?

What are the steps involved in the creating, optimizing, monetizing your virtual currency and economy?

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Social Gold: How to Launch your own Currency

  1. 1. Launching Your Virtual Currency Vikas Gupta Co-Founder/CEO, Social Gold
  2. 2. 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
  3. 3. 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
  4. 4. What is currency?
  5. 5. What is currency? “Labour is the real measure of exchangeable value. “Wealth is power of purchasing labour.”
  6. 6. 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.
  7. 7. “Real World” Examples
  8. 8. “Real World” Examples
  9. 9. “Real World” Examples Goods, Services
  10. 10. “Real World” Examples Goods, Services
  11. 11. “Real World” Examples Goods, Travel, Services Luxury
  12. 12. “Real World” Examples Goods, Travel, Services Luxury
  13. 13. “Real World” Examples Goods, Travel, Services Luxury Entertainment
  14. 14. “Real World” Examples Goods, Travel, Services Luxury Entertainment
  15. 15. “Real World” Examples Goods, Travel, Services Luxury Entertainment Entertainment
  16. 16. “Virtual Currency” Examples
  17. 17. “Virtual Currency” Examples
  18. 18. “Virtual Currency” Examples Goods
  19. 19. “Virtual Currency” Examples Goods
  20. 20. “Virtual Currency” Examples Goods Entertainment
  21. 21. “Virtual Currency” Examples Goods Entertainment
  22. 22. “Virtual Currency” Examples Goods Entertainment Games
  23. 23. “Virtual Currency” Examples Goods Entertainment Games
  24. 24. “Virtual Currency” Examples Goods Entertainment Games Flirting
  25. 25. Why Virtual Currency?
  26. 26. Why Virtual Currency? • Separate “Value” from “Money”
  27. 27. Why Virtual Currency? • Separate “Value” from “Money” • Virtual currency is “cheaper” than “money”
  28. 28. Why Virtual Currency? • Separate “Value” from “Money” • Virtual currency is “cheaper” than “money” • Train User Behavior
  29. 29. Why Virtual Currency? • Separate “Value” from “Money” • Virtual currency is “cheaper” than “money” • Train User Behavior • Economy around user generated content
  30. 30. How to introduce Virtual Currency?
  31. 31. Part 1: User Experience
  32. 32. Part 1: User Experience • Currency must be integral to user experience
  33. 33. Part 1: User Experience • Currency must be integral to user experience • “Experience Economy”
  34. 34. Part 1: User Experience • Currency must be integral to user experience • “Experience Economy” • Users pay for a memorable experience
  35. 35. Example: A Farming Game Focus on Experience (Goods)
  36. 36. Free Currency
  37. 37. Labour Free Currency
  38. 38. Labour Free Currency
  39. 39. Labour Free Currency Currency
  40. 40. Labour Free Currency Currency
  41. 41. Part 2: How to Build
  42. 42. Part 2: How to Build • Balance + Transactions
  43. 43. Part 2: How to Build • Balance + Transactions • How “loose” or “correct” you want your ledger to be?
  44. 44. Part 2: How to Build • Balance + Transactions • How “loose” or “correct” you want your ledger to be? • Auditable (Sum of transactions = balance)
  45. 45. 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)
  46. 46. DIY or Partner
  47. 47. DIY or Partner • Platforms like Social Gold available
  48. 48. DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market
  49. 49. DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency
  50. 50. DIY or Partner • Platforms like Social Gold available • Reduces cost, time to market • Adds an external dependency • Ensure cost per transaction is low
  51. 51. 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
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. Part 3: Optimize
  56. 56. Part 3: Optimize • What should you measure?
  57. 57. Part 3: Optimize • What should you measure? • How do you optimize?
  58. 58. Part 3: Optimize • What should you measure? • How do you optimize?
  59. 59. Part 3: Optimize • What should you measure? • How do you optimize? • Good Metrics are actionable
  60. 60. Number of transactions is a good measure of the health of your economy
  61. 61. Measure Sources vs Sinks
  62. 62. Effective Channels
  63. 63. Price Testing
  64. 64. Revenue Drivers
  65. 65. DIY or Partner
  66. 66. DIY or Partner • Platforms like Social Gold can do it for you • Leverage a large suite of tools and expertise
  67. 67. DIY or Partner • Platforms like Social Gold can do it for you • Leverage a large suite of tools and expertise • Measure everything
  68. 68. 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
  69. 69. Part 4: Making Money
  70. 70. Part 4: Making Money 1. Engagement before money
  71. 71. Part 4: Making Money 1. Engagement before money 2. Value is perceived from goods, not currency
  72. 72. Part 4: Making Money 1. Engagement before money 2. Value is perceived from goods, not currency 3. Understand your user demographics
  73. 73. User Experience
  74. 74. User Experience Weave payments into your user experience!
  75. 75. User Experience Weave payments into your user experience! e.g., in-Flash Payments by Social Gold
  76. 76. Payment Methods
  77. 77. Payment Methods • Credit cards drive majority of the revenue
  78. 78. Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international)
  79. 79. Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international) • Pre-paid cards (cash paying users)
  80. 80. Payment Methods • Credit cards drive majority of the revenue • Mobile phones (teens/international) • Pre-paid cards (cash paying users) • Incentivized Offers (subsidized by advertisers)
  81. 81. 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
  82. 82. Subscriptions
  83. 83. Subscriptions • Long term commitment
  84. 84. Subscriptions • Long term commitment • Demonstrate Economic value
  85. 85. Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay
  86. 86. Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay • Don’t limit your revenue
  87. 87. Subscriptions • Long term commitment • Demonstrate Economic value • Subscription is a way to save, not pay • Don’t limit your revenue • Combine it with currency
  88. 88. 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:
  89. 89. 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
  90. 90. Part 5: Making it an Economy
  91. 91. Part 5: Making it an Economy • Who controls goods and prices?
  92. 92. Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar
  93. 93. Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar • User generated content
  94. 94. Part 5: Making it an Economy • Who controls goods and prices? • e.g., Linden Dollar • User generated content • Prices determine by users (market)
  95. 95. 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
  96. 96. 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
  97. 97. Tools
  98. 98. Tools • Potentially infinite catalog
  99. 99. Tools • Potentially infinite catalog • Catalog for UGC (user data, history)
  100. 100. Tools • Potentially infinite catalog • Catalog for UGC (user data, history) • User to User transactions
  101. 101. Tools • Potentially infinite catalog • Catalog for UGC (user data, history) • User to User transactions • Currency trade, Secondary markets
  102. 102. Tools • Potentially infinite catalog • Catalog for UGC (user data, history) • User to User transactions • Currency trade, Secondary markets • Deep Analytics and Fraud Control
  103. 103. Summary
  104. 104. Summary • Currency is a means, not the end
  105. 105. Summary • Currency is a means, not the end • Engage before you monetize
  106. 106. Summary • Currency is a means, not the end • Engage before you monetize • Build infrastructure to scale at low cost
  107. 107. Summary • Currency is a means, not the end • Engage before you monetize • Build infrastructure to scale at low cost • Actionable Metrics
  108. 108. 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”
  109. 109. Virtual Currency Platform http://getsocialgold.com/ vikas@jambool.com

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