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	<title>TK Studios &#187; freemium</title>
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	<link>http://www.tkstudios.com</link>
	<description>Web Application Design &#38; Development</description>
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		<title>Virtual Currency and Freemium Services</title>
		<link>http://www.tkstudios.com/2009/04/19/virtual-currency-and-freemium-services/</link>
		<comments>http://www.tkstudios.com/2009/04/19/virtual-currency-and-freemium-services/#comments</comments>
		<pubDate>Mon, 20 Apr 2009 00:18:43 +0000</pubDate>
		<dc:creator>James</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Listy]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Projects]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[freemium]]></category>
		<category><![CDATA[GDC]]></category>
		<category><![CDATA[metaplace]]></category>
		<category><![CDATA[offer-based marketing]]></category>
		<category><![CDATA[virtual currency]]></category>

		<guid isPermaLink="false">http://www.tkstudios.com/?p=73</guid>
		<description><![CDATA[Here&#8217;s a monetization idea I&#8217;ve been playing with since participating in post-GDC &#8220;Idea Exchange: Emerging Trends in Game Development,&#8221; a sort of virtual conference that was held in both Metaplace and Second Life via a chat bridge between the two (pretty cool in itself). You can see a side-by-side screen comparison here. During that chat, [...]]]></description>
			<content:encoded><![CDATA[<p>Here&#8217;s a monetization idea I&#8217;ve been playing with since participating in post-GDC &#8220;<em>Idea Exchange: Emerging Trends in Game Development,</em>&#8221; a sort of virtual conference that was held in both Metaplace and Second Life via a chat bridge between the two (pretty cool in itself). You can see a side-by-side screen comparison <a href="http://farm4.static.flickr.com/3639/3429997006_0c46d40d4d_o.jpg">here</a>.</p>
<p>During that chat, a lot of ideas were covered, and Raph briefly touched on how he thought offer-based marketing was a big new trend at GDC. Here&#8217;s the chat log, edited for relevance:</p>
<p><span id="more-73"></span></p>
<blockquote><p><strong>SL: Kim Chihuly:</strong> so fremium and microtransactions &#8211; any other new busines model stuff from GDC?<br />
<strong>Raph:</strong> Yes! offer-based marketing<br />
<strong>Raph:</strong> Huge new trend<br />
<strong>gracemcdunnough:</strong> Raph, explain?<br />
<strong>Raph:</strong> Offer-based marketing: where users are offered discounts/coupons/special access to partner programs, and referral revenue is paid to the oeprator<br />
<strong>Raph:</strong> Reports from companies exploring this is that it has resulted in a 30% or so increase in their revenues<br />
<strong>WorldMaker:</strong> Isn&#8217;t offer-based marketing entirely too 1990s Web 1.0?<br />
<strong>SL: Dave Zeeman:</strong> Sounds like those &#8220;Get a free XBox 360!&#8221; ads.<br />
<strong>SL: Adri Saarinen:</strong> Oh man, Offerpal was all over GDC<br />
<strong>SL: Dave Zeeman:</strong> only in reverse<br />
<strong>gracemcdunnough:</strong> Bounties, those were popular in the early web days</p>
<p><a href="http://beta.metaplace.com/forums/posts/listing/3679">Full log here</a> (Requires Metaplace beta account)</p></blockquote>
<p>So I tossed &#8220;Research Offer-based Marketing&#8221; into my notebook, and forgot about it for a few days. Upon reading it again, I hit up good ol&#8217; Google for some info. Probably the best article I came across was <a href="http://venturebeat.com/2009/04/01/super-rewards-brings-offer-based-virtual-currency-to-the-web-whats-it-worth/">this one at VentureBeat</a>. Good stuff.</p>
<p>How does this apply to my own interests, Listy in particular? Well, I&#8217;m always interested in marketing ideas &#8211; that&#8217;s just how I am. I&#8217;m particularly interested in marketing that doesn&#8217;t inconvenience the audience. No annoyance, etc. Given that, this seemed like a pretty good idea &#8211; I get revenue, user gets two somethings instead of one.</p>
<p>Now throw in virtual currency. What if the premium services on your web app cost a specific amount per month in virtual cash, and you can pick and choose the services you want (rather than free/premium boolean style)? Each service costs a little bit, user&#8217;s pages can have tip jars (tie it into twitter, even: <em>@listybot: tip @tkstudios 100), </em>users can buy points, or get &#8216;em via free offers.</p>
<p>It&#8217;s a pretty fun concept. A bit more complex than just having paid accounts, but definitely much cooler, and more importantly, much more fun. And fun&#8217;s what it&#8217;s all about, isn&#8217;t it? I mean, besides functionality and usefulness and a hundred other factors&#8230;</p>
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