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Margaret Wallace, CEO,[object Object],margaret@playmatics.com,[object Object],Twitter: @MargaretWallace,[object Object]
1996,[object Object]
Making Free-to-Play Games Work for You,[object Object]
Successful Use of Virtual Goods Touch on Core Experiences,[object Object],Decorative ,[object Object],Items,[object Object],Consumables,[object Object],Social ,[object Object],Accelerators,[object Object]
Know What Motivates Your Audience,[object Object],Values & Belief Systems,[object Object],Are they loyal to any brands?,[object Object],How much disposable income do they have?,[object Object],What motivates them to come to your game? ,[object Object],Socializing?,[object Object],Being Creative?,[object Object],Zoning Out?,[object Object],Killing Time?,[object Object],Competition?,[object Object]
Type of Free-to-Play Game  Users Virtual Goods,[object Object]
Gear,[object Object],Weapons,[object Object],Functional Items,[object Object],Clothing,[object Object],Earth Eternal,[object Object]
50% Functional ,[object Object],50% Decorative,[object Object],Puzzle Pirates,[object Object]
Virtual Goods Make Up 85% Of Habbo Revenue -- $70M in 2008,[object Object],Social, Decorative Items,[object Object],Consumables,[object Object],Habbo Hotel,[object Object]
60% -- 90% of revenues selling virtual goods ranging from digital farm buildings to poker chips.,[object Object],Predominantly Items ,[object Object],that Allow You to ,[object Object],Tend to Farm,[object Object],Farmville,[object Object]
Enhance Game Play,[object Object],Access New Levels,[object Object],Customize characters,[object Object]
Gifting & Flirting!,[object Object]
Integrating Virtual Goods Into Free-to-Play Game Experiences,[object Object]
In-Game / Functional,[object Object]
Social Status,[object Object]
Decorative,[object Object],Playfish sells around 20M items in Restaurant City every day - in either money- or time-based currencies.,[object Object],Source: “Building Social Games at Scale” Panel, Social Gaming Summit, June 23, 2009,[object Object]
Gifting,[object Object],Playfish titles are typically released with just 20% of their final features developed and implemented. ,[object Object],The rest is introduced over time in response to the demands of the community and success of the title.,[object Object],Source: “Building Social Games at Scale” Panel, Social Gaming Summit, June 23, 2009,[object Object]
Collectibles & Rare Items,[object Object],Limited number, niche appeal, unique appeal.,[object Object]
Setting Goals,[object Object]
Trading / Exchange,[object Object]
Rewarding Behavior,[object Object]
Conferring Status,[object Object]
Metrics,[object Object],Must have metrics in place!,[object Object]
Metrics & Reporting,[object Object],Sample metrics needed to track and have at your finger-tips anytime:,[object Object]
Measuring Active Users,[object Object],What percentage are returning players who do something significant in your game?,[object Object],For MMOs = Once every 30 days,[object Object], For Social Games = Measured Daily,[object Object]
Average Revenue Per User (ARPU),[object Object],Measuring Average Revenue Per User Allows You to Gauge the Success of Your Service. ,[object Object],Total Monthly Revenue / Active Users = ARPU,[object Object],€ 2 Million /  150,000 = € 13 ARPU ,[object Object],€ 2,000 / 150 = € 13 ARPU ,[object Object],Gaming the System!,[object Object]
Lifetime Value of User,[object Object],How Much a User is Valued Over Time,[object Object],ARPU x #/Months on Site = Lifetime Value,[object Object],€ 13 x 6 months = € 78,[object Object],Facebook game churn is around 8 weeks. ,[object Object]
Average Revenue Per Paying User (ARPPU),[object Object],How Much Paying Users Spend,[object Object],Monthly Revenue / Paying Users = ARPPU,[object Object],€ 2 Million /  20,000 = € 100 ARPPU ,[object Object],NOTE: Factor in Cost Per Acquisition, which can cost up to .70 to 1.50 Euros Per User,[object Object]
What Does This Mean?,[object Object],Social Games ARPU = ,[object Object],.30 – 3 Euros,[object Object],ARPU for MMOs sometimes reported as higher, ,[object Object],but they may have far fewer players. ,[object Object]
Common Mistakes,[object Object]
Common Mistakes,[object Object],Retrofitting virtual goods into an already-existing design – and making stupid design decisions to compensate for that. ,[object Object],Not preparing your community for changes.,[object Object],Not responding to community. ,[object Object],Not having a content plan once first set of goods released. ,[object Object]
Common Mistakes,[object Object],Having a set price for purchasing virtual currency, independent of the payment method.,[object Object],Not designing enough “sinks” in the economy – i.e., selling back items @ 50%, having enough consumables. ,[object Object],Having bad metrics in place.,[object Object]
Questions?,[object Object],Contact: Margaret Wallace, CEO,[object Object],margaret@playmatics.com,[object Object],Twitter: @MargaretWallace,[object Object]

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