I used to believe that only the Dire Straits got their money for nothing, i mean who pays for nothing? The whole concept around paying money is that you receive something, correct? I know, I know. “We pay for experiences, entertainment”. I agree we do but you usually walk away feeling good, entertained!
Well, as i said i used to believe this. There is a revolution of people paying for nothing. You can go out and set up an account right now with OfferPal, the setup only takes 10 mins. In a short period of time they will have you set up to sell NOTHING. You heard me. Let’s look at an example. Zynga, you may have heard of them. They are the small company that produces games in Facebook like Texas Hold’em, Yoville, Farmville and others. Each of these games use the same underlying framework and work off the same model. You use a form of imaginary currency that they determine. To get more currency you play a game or preform a series of mundane tasks. After ahwhile you might become bored of these task so what can you do? You can BUY more coins, points, etc. This is where OfferPal comes in.
OfferPal links your application with big advertisers like Netflix. OfferPal gives you iFramed content targeted to your user. They may see ads for Netflix, eHarmony or others. If they signup for one of these the user may get up to 10,000 points to spend in your game. You get $20-$40 per signup depending on the advertiser. It was estimated that Zynga may earn 200,000 + a year per game based on this model. Now that is what i call “Good Times”.
What do you spend the points on, is it entertaining?
Farmville: With enough points you can buy a combine (it’s actually a 50px x 50px GIF that looks like a combine). You can use that combine on your farm. Oh, wait, no you can’t it’s actually JUST a image. Ha, you can show your friend how much money you spent on a image of a combine the most sought after piece of farming equipment known to man.
Texas Hold’em: You can use your chips to buy someone you don’t know an image of a Pastrami on Rye, Vodka, Tiara or a Teddy Bear.
Yoville: You can buy 100,000 coins for only $40 USD and use them to buy your friends furniture for their home. I don’t even buy my friends furniture in real life. I believe this type of action builds friendships we are not ready to commit to. I mean if i buy you a couch, thats it, i am not contributing any more beyond that to our relationship.
I guess the most surprising thing to me is that with the economy the way it is and so many people cutting back this business is thriving. There are millions to be made with this model and the end is still far off. The lifespan of many of these games is not very long, maybe just 18 months or so. These things are very trendy so if your interested think of something HOT and get in quickly.
So if we have learned anything its that Zynga is getting it’s money for nothing, i am not sure if the chicks are free.