Social Developer Summit

1. JiaShen Monetization Game MechanicsSocial Games

2. Maximize % of paying users 3-5% of paying users on average High end is 10-15% 50% of these users rebuy People either don’t spend or spend a lot Free-2-Play -> it’s a user acquisition funnel

3. Number One Monetization Strategy: Create Perceived Value Perceived Value The key to all monetization Create higher value on actions, items, and events due to variables such as difficulty, rarity, time, artwork, and social functionality The Physical (or Virtual) Manifestation of Perceived Value is: Currency Castle Age

4. Perceived Value Self Expression Items Competitive Items Stats Upgrades Temporary stats Consumables Progress / Level Ultimately converts to currency

5. Time creates desire You want what you can’t have You want it NOW If its too easy, you don’t want it

6. Limited and Premium Items Premium You just gotta pay to play Limited Get it now or you’ll never see it again. Maybe Warstorm Social City

7. Level Locking Providing the Hope of Future Entertainment By providing visible goals and achievements, users are given a clear incentive to continue gameplay Allows for a tightly-regulated system of item release and pacing of users Nightclub City Frontierville

8. Chance First ones free Collectibles Age old mechanic to extend out perceived value Roulette Maintain pacing to fit hardcore and casual users, as well as new feature release cycles Frontierville Social City

9. Time Savers / Boosters Speed it up Quick Refill Every Stat can be filled right now so you can progress NOW Time Boost Less tangible than instant, but makes for better balancing Backyard Monsters

10. Level Tuning Throw users into a “lifetime” to earn value New User Flow Level up a new user quickly in order to create a sense of quick accomplishment and value Start with instant gratification Growth Curve Dynamics Maintain pacing to fit hardcore and casual users, as well as new feature release cycles User Loss Monitor user levels and tweak according to user drop off Nightclub City Frontierville Nanosiege

11. Summaries… Maximize % of Paying users Design Perceived Value Limit access to value Creates demand Ups retention because user derives value

12. Thank you!

14. Create difficulty ramp and barriers Time with perceived value creates demand Determine acceptable rate of increase Create many different interacting barriers Allows for value creation in the future Harder for exploitation of one state

15. Dual Currencies Dual Currencies – Created to combat in-game inflation By pegging one currency to gameplay functionality and one currency to the dollar, this allows much finer control over the in-game economy As people level up and standard currency becomes more plentiful, the use of a secondary currency that does not inflate allows for continuous monetization, or cross-application functionality (a proposed advantage of FB Credits) Avoids potential loss of paying customers to gameplay loopholes or bugs

16. Translate to Chinese Higher percentage of paying users Optimize paying user experience