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FROM VIRTUAL ECONOMIES
     TO ACTUAL REVENUE
                   Yaniv Nizan, Feb 13
Yaniv Nizan – Short Bio




• Monetizing   • Monetizing    • Monetizing
  Videos         blogs           games
• The Other    • Advertising   • In-App
  gaming                         Purchase
EyeView        INTENTclick     SOOMLA
About SOOMLA


• Established August 2012
• Backed by private investors including
  Oded Vardi
• 100% month to month growth since launch
• Over 1M end device installs
• 5,000 Fans in Facebook
The SOOMLA Framework
•   Series of Open Source Projects
•   Mission: To allow indies to collaborate
•   Do it once do it well
•   Cross Platform
The SOOMLA Store Designer


• In-App Purchase Store SDK
  • Creating seamless stores
  • Management Dashboard
SECTION 1
5 VIRTUAL ECONOMY MISTAKES
Mistake 0 – No Virtual Economy


91% of Revenue is in Selling Coins




Users spend over 50% of the time in the store
Mistake 1 – Focusing on Selling
Focus on
  Earning



      Game                 Soft
      Play                 Store


• Increased User Engagement
• Users will buy if they have coins
Mistake 2 – Balance = 0


• Give users some coins
• Show them the Store before the game
Mistake 3 – Goods lasts forever


• Rentable or consumable are Better
• Opportunities for tweaking
• Sell Everlasting items only for hard
  currency
Mistake 4 – Single Currency


• Having 2 or 3 currencies gives more
  opportunity for tweaking
• Allows some of the goods to be
  purchasable only with real money
Mistake 5 – Boring

• Users should be exposed to new goods as
  they progress in the game
• Complex Dependencies
Section 2
CLASH OF CLANS CASE STUDY
Clash of Clans
• $500K / day
• Record Breaking ARPU
2 Games in One


• Building a Clan
  • Accumulating wealth
  • Investing in buildings
  • Training Soldiers
• Fighting
  • Deploying troops
  • Waiting to see the result
2 Games in One


• Building a Clan
  • Accumulating wealth          Resource
                                Management
  • Investing in buildings
  • Training Soldiers



• Fighting
                                  Puzzle
  • Deploying troops
  • Waiting to see the result
Virtual Economy in Clash of Clans
• Perfect balance
• Time is always missing
Clash of Clans in the Model
Tip                        Clash of Clans
Focus on Earning           Multiple ways to earn.
                           Virtual goods impact
                           earning
Starting Balance > 0       YES
Virtual goods don‟t last   Soldiers are killed,
                           buildings are destroyed
Number of Currencies       2 Soft currencies, 1 Hard
Interesting Store          Each items have
                           multiple levels. Complex
                           unlocking rules
Section 3
5 Tips for Store Design
Tip 1 – Item attributes


• Product Comparison
• Reduced Complexity
• Allow easy modification
Tip 2 – Meta and ROI Items


• Items that are “no brainer”
  • Coin magnet
  • Double coins

• Currency Limitations
  • Gold storage
Tip 3 – Double Verification


• Verifying „soft‟ transactions
  • Reduces the mental difference
  • Get the player used to verifying
  • Make actual purchase easy
Tip 4 – Hard Items


• Some items are only available for hard
  currency purchases
Tip 5 – Levels/Upgrades


• Selling different levels of the same item
  • Shopping becomes an achievement
  • Keeps store fresh
  • Simplifies store
Section 4
CSR RACING CASE STUDY
CSR RACING


• $12M / Month
• Users spend more than 50% in Store
2 Games in One


• Building a Car Fleet
  • Accumulating wealth
  • Investing in Cars and Upgrading
  • Tuning Car



• Racing
  • Shifting Gears
  • Waiting to see the result
2 Games in One


• Building a Car Fleet
  • Accumulating wealth          Resource
                                Management
  • Investing in Cars
  • Tuning Car



• Racing
                                Action / Puzzle
  • Shifting Gears
  • Waiting to see the result
Store
Stupid Simple
• Virtual Goods
  • Cars (with levels)
  • Only 5 upgrades (with levels)
  • Infinite combinations

• Everything is translated to 4
  attributes
CSR Racing in the Model
Tip                    CSR Racing
Item Attributes        Everything boils down to
                       4 attributes
Meta and ROI Items     No specific item but it‟s
                       an ROI driven game
Double Verification    Yes
Number of Currencies   1 Hard, 1 Soft
Interesting Store      Everything is in levels
                       Infinite options
FACEBOOK.COM/THE.SOOMLA.PROJECT
BLOG.SOOM.LA
PROJECT@SOOM.LA        Yaniv Nizan, Feb 2013

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From Virtual Economy to Actual Revenue

  • 1. FROM VIRTUAL ECONOMIES TO ACTUAL REVENUE Yaniv Nizan, Feb 13
  • 2. Yaniv Nizan – Short Bio • Monetizing • Monetizing • Monetizing Videos blogs games • The Other • Advertising • In-App gaming Purchase EyeView INTENTclick SOOMLA
  • 3. About SOOMLA • Established August 2012 • Backed by private investors including Oded Vardi • 100% month to month growth since launch • Over 1M end device installs • 5,000 Fans in Facebook
  • 4. The SOOMLA Framework • Series of Open Source Projects • Mission: To allow indies to collaborate • Do it once do it well • Cross Platform
  • 5. The SOOMLA Store Designer • In-App Purchase Store SDK • Creating seamless stores • Management Dashboard
  • 6. SECTION 1 5 VIRTUAL ECONOMY MISTAKES
  • 7. Mistake 0 – No Virtual Economy 91% of Revenue is in Selling Coins Users spend over 50% of the time in the store
  • 8. Mistake 1 – Focusing on Selling Focus on Earning Game Soft Play Store • Increased User Engagement • Users will buy if they have coins
  • 9. Mistake 2 – Balance = 0 • Give users some coins • Show them the Store before the game
  • 10. Mistake 3 – Goods lasts forever • Rentable or consumable are Better • Opportunities for tweaking • Sell Everlasting items only for hard currency
  • 11. Mistake 4 – Single Currency • Having 2 or 3 currencies gives more opportunity for tweaking • Allows some of the goods to be purchasable only with real money
  • 12. Mistake 5 – Boring • Users should be exposed to new goods as they progress in the game • Complex Dependencies
  • 13. Section 2 CLASH OF CLANS CASE STUDY
  • 14. Clash of Clans • $500K / day • Record Breaking ARPU
  • 15. 2 Games in One • Building a Clan • Accumulating wealth • Investing in buildings • Training Soldiers • Fighting • Deploying troops • Waiting to see the result
  • 16. 2 Games in One • Building a Clan • Accumulating wealth Resource Management • Investing in buildings • Training Soldiers • Fighting Puzzle • Deploying troops • Waiting to see the result
  • 17. Virtual Economy in Clash of Clans • Perfect balance • Time is always missing
  • 18. Clash of Clans in the Model Tip Clash of Clans Focus on Earning Multiple ways to earn. Virtual goods impact earning Starting Balance > 0 YES Virtual goods don‟t last Soldiers are killed, buildings are destroyed Number of Currencies 2 Soft currencies, 1 Hard Interesting Store Each items have multiple levels. Complex unlocking rules
  • 19. Section 3 5 Tips for Store Design
  • 20. Tip 1 – Item attributes • Product Comparison • Reduced Complexity • Allow easy modification
  • 21. Tip 2 – Meta and ROI Items • Items that are “no brainer” • Coin magnet • Double coins • Currency Limitations • Gold storage
  • 22. Tip 3 – Double Verification • Verifying „soft‟ transactions • Reduces the mental difference • Get the player used to verifying • Make actual purchase easy
  • 23. Tip 4 – Hard Items • Some items are only available for hard currency purchases
  • 24. Tip 5 – Levels/Upgrades • Selling different levels of the same item • Shopping becomes an achievement • Keeps store fresh • Simplifies store
  • 25. Section 4 CSR RACING CASE STUDY
  • 26. CSR RACING • $12M / Month • Users spend more than 50% in Store
  • 27. 2 Games in One • Building a Car Fleet • Accumulating wealth • Investing in Cars and Upgrading • Tuning Car • Racing • Shifting Gears • Waiting to see the result
  • 28. 2 Games in One • Building a Car Fleet • Accumulating wealth Resource Management • Investing in Cars • Tuning Car • Racing Action / Puzzle • Shifting Gears • Waiting to see the result
  • 29. Store
  • 30. Stupid Simple • Virtual Goods • Cars (with levels) • Only 5 upgrades (with levels) • Infinite combinations • Everything is translated to 4 attributes
  • 31. CSR Racing in the Model Tip CSR Racing Item Attributes Everything boils down to 4 attributes Meta and ROI Items No specific item but it‟s an ROI driven game Double Verification Yes Number of Currencies 1 Hard, 1 Soft Interesting Store Everything is in levels Infinite options