Growth5 Blog

Saturday, September 12, 2009

Getting Users to Pay

According to this article on paidcontent.org, while many companies are figuring out how to make money online despite declining ad sales, companies like teen-friendly social network myYearbook are profitable because of a "subscription and virtual goods-based business model that has increased revenues by 120 percent vs. a year ago."

myYearbook members can buy "virtual currency called Lunch Money, which can be used for virtual gifts... the social net also rolled out a premium membership called the VIP Club, with monthly fees that range from $7 - $20 per month."

Networks like hi5 (great name) have diversified their revenue stream with virtual goods and downloadable games.

Back in April we wrote about Chinese social networking site Tencent as the first social networking site in the world to reach $1 billion in annual revenue by introducing virtual games and other items that subscribers would pay for as ad revenue in China is limited.

To help online sites make money via freemium models, 'pay for what you use' content plans, the sale of virtual goods, downloadable games and apps it would be nice if there were one ubiquitous provider that would facilitate micropayments efficiently across all platforms. Hey Google, I'm looking in your direction.

Related:
Thanks to Google, the Micropayment Era Is Closer (BNET)

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