[This post originally appeared on Adrian Crook’s Freetoplay.biz site.]
Game developers the world over continue to explore the free to play model, whether it’s a large-scale MMO or an ad-supported casual game. But one of the more interesting free to play experiments of late comes from Facebook application developer David Gentzel, a 24 year old originally from Roanoke, VA. Mr. Gentzel now calls San Francisco home where he is a developer at SocialMedia, marketing guru Seth Goldstein‘s rapidly growing “Social Advertising Network.”
David’s free to play experiment is the incredibly popular Food Fight application.
When the game first launched on Facebook, Food Fight players could sign up to receive a daily allowance of virtual cash that could be spent at the Food Fight cafeteria to purchase one of dozens of available food items. Players would then virtually “throw” said item at one of their Facebook friends. If the recipient had the food fight application, a small image of the item would appear on their page.
But recently, Food Fight’s the resourcing model changed, which is when it became interesting from the perspective of free to play revenue models.
As of mid-September of this year, a player’s lunch money account isn’t cleared at the end of every day – it’s persistent – like a real bank account. Additionally, the daily stipend given to each player was removed, replaced by a model where players earn virtual cash by answering short marketing surveys about a wide range of products. Each multiple choice question takes just a couple seconds to fill out with a reward of one dollar of lunch money per question answered. Interestingly, players earn a higher payout when they answer the same question the same way down the road, an attempt to value accurate answers more highly than one-offs.
Marketers pay for player responses to their surveys, creating a nifty free to play revenue stream and making Food Fight the definitive social networking application for SocialMedia. Seth Goldstein is understandably thrilled about the “craplet” (his words), saying in a recent Business 2.0 article:
People really like to throw piles of poop… So you price the poop high and people have to answer a bunch of questions to pay for it. That’s the future of Internet advertising: throwing shit at people. Literally.
That is it. No scoring, no winners, and no end. Nonetheless, a very successful idea.
It takes a bit of conjecture to figure out, but here’s our back-of-the-napkin revenue estimate:
- There are 36,257 active daily Food Fight users (among 2M registered FF players)
- Assuming each daily user answered just two surveys (reality is likely higher, as the lowest priced item is $2 – requiring two surveys to be completed)
- Assuming each survey response cost a marketer 25 cents (reality is likely lower, but Facebook polls already charge clients 25 cents/response)
- This would result in $18,128 of revenue per day
- Or ~$6.6M of annual revenue for SocialMedia, from one app
That is no small potatoes for an application that likely cost less than $100k to develop.
Since Food Fight introduced surveys, food prices have increased significantly as the game gets balanced. Prices for food items range from $2 to $11 virtual lunch money dollars. For instance, at $10 lobster is significantly more expensive than most items with only Bubble Tea having a higher price tag.
Consider the following price comparison from June 25th of this year till October 26th, a four month time period.
- Haggis = $1.75 / $3.40 (194% increase)
- Orange = $.50 / $2.30 (460%)
- Banana = $.50 /$3.25 (650%)
- Sucker = $.25 / $2.30 (920%)
- Shrimp cocktail = $1.75 / $3.40 (194%)
So according to these numbers Food Fight items have increased in value by an average of 484%. However, in less than a minute a player can answer enough survey questions to buy even the most expensive item – keeping the game easy and fast to play, while deriving more and more potential revenue from the same virtual items.
Given the fad-ish, viral-flocking nature of social networking apps, it will be interesting to see if Food Fight can maintain and grow their numbers long enough to start capitalizing on this potential revenue stream. In the meantime, SocialMedia is using Food Fight as a beta test for their social advertising network as a whole (and a host of similar apps) – electing not to charge for most, if not all, of the marketing surveys they host. (F2P.biz’s request to SocialMedia for clarification on the “revenue stream, on or off?” point was not answered before this article was published).
Regardless of when SocialMedia turns on the money tap, it’s clear they’re onto a high-ROI free to play revenue model that traditional game developers could do well to emulate.