Is OMGPOP's tripling of virtual good sales indicative of Facebook Credits being successful?
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In a TechCrunch article, CEO Dan Porter stated, "Facebook credits drives higher transaction volume on Facebookâespecially the instant credits.â He adds that â because of instant credits we are seeing a higher than usual conversion rate, probably 3 times higher than a standard Facebook game, but the transaction value is lower because there are fewer items and they are priced less.â So it is tripling the number of virtual goods it is selling, but not the dollar amount." What is actually happening with their bottom line? Were they forced to lower prices to adjust to Facebook credits denominations?
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Answer:
We were not forced to lower prices. Draw My Thing is a different type of game than a traditional social game in that there is no investment or decoration mechanic. Most of the in game items have traditionally been priced in small bits on our site as well. The impact of Instant Credits is that it allows people to buy small in game consumable on the go. This is critical in a synchronous game because you are "in the game" with other people and you can't wait, stop playing, to buy something, and then lose your place. It's a different model - higher transactions lower value - as opposed to lower transactions and higher value. The bet is that you can make money either way.
Dan Porter at Quora Visit the source
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