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?

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

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. 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. What is currency?

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

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. “Real World” Examples

8. “Real World” Examples

9. “Real World” Examples
Goods,
Services

10. “Real World” Examples
Goods,
Services

11. “Real World” Examples
Goods, Travel,
Services Luxury

12. “Real World” Examples
Goods, Travel,
Services Luxury

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

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

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

16. “Virtual Currency” Examples

17. “Virtual Currency” Examples

18. “Virtual Currency” Examples
Goods

19. “Virtual Currency” Examples
Goods

20. “Virtual Currency” Examples
Goods Entertainment

21. “Virtual Currency” Examples
Goods Entertainment

22. “Virtual Currency” Examples
Goods Entertainment
Games

23. “Virtual Currency” Examples
Goods Entertainment
Games

24. “Virtual Currency” Examples
Goods Entertainment
Games Flirting

25. Why Virtual Currency?

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

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

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

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

30. How to introduce Virtual Currency?

31. Part 1: User Experience

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

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

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

35. Example: A Farming Game
Focus on Experience (Goods)

37. Free Currency

38. Labour
Free Currency

39. Labour
Free Currency

40. Labour
Free Currency
Currency

41. Labour
Free Currency
Currency

42. Part 2: How to Build

43. Part 2: How to Build
• Balance + Transactions

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

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

46. 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)

47. DIY or Partner

48. DIY or Partner
• Platforms like Social Gold available

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

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

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

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

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

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

55. 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

56. Part 3: Optimize

57. Part 3: Optimize
• What should you measure?

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

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

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

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

62. Measure Sources vs Sinks

63. Effective Channels

64. Price Testing

65. Revenue Drivers

66. DIY or Partner

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

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

69. 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

70. Part 4: Making Money

71. Part 4: Making Money
1. Engagement before money

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

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

74. User Experience

75. User Experience
Weave payments into your
user experience!

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

77. Payment Methods

78. Payment Methods
• Credit cards drive majority of the revenue

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

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

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)

82. 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

83. Subscriptions

84. Subscriptions
• Long term commitment

85. Subscriptions
• Long term commitment
• Demonstrate Economic value

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

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

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

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:

90. 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

91. Part 5: Making it an Economy

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

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

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

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

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

97. 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

98. Tools

99. Tools
• Potentially infinite catalog

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

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

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

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

104. Summary

105. Summary
• Currency is a means, not the end

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

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

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

109. 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”

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