• Business,  Marketing,  software

    Paying Real Money for Branded Virtual Goods

    I was having an interesting conversation the other day with a friend who’s creating a platform for game developers to add brands to a game. They’re building some really cool tech around the idea, not unlike AdWords/AdSense for virtual goods or in-game achievements, both for social and more traditional console games. I think it’s quite clever on their part, and it feels like a natural evolution of the gaming ecosystem as advertisement starts to creep into the gaming experience. Social gaming has already seen some partnerships with large brands, like the Farmer’s Insurance blimp in Zynga’s Farmville, or deals with charities whereby they reap the benefits of virtual goods sold…

  • Business,  Marketing

    Freemium vs. Paid Models – How to know which one makes sense

    Very good article about a formula that actually lets you determine whether a freemium or paid model is right for your business. With this in mind, Mullany’s equation for freemium businesses looks like this: Price Paid by Premium User – Cost of Proving the Service to the Premium User – [ (1/Ratio of Premium:Free Users) * (Cost of Free Service Per User + Cost of Marketing to get a Free User) ] = Profit Per Premium User Check out the full article over here.