lee clancy\'s getting users over the hump - boosting conversion to paid at virtual goods...
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Getting Users Over the Hump:
Boosting Conversion to Paid
Lee Clancy
SVP/GM
IMVU Inc.
October 12, 2010
Virtual Goods Summit - West
Agenda
• What is IMVU?
• IMVU’s 12 Lessons of Conversion
• Q & A
What’s IMVU?Agenda
An online community where members use 3D avatars to meet new people,
chat, create, and play games with their friends
What’s IMVU?What is IMVU?
Company Overview
• Founded in 2004
• Based in Palo Alto, CA
• 100 employees
• 3 institutional rounds
• $30M raised
Business Snapshot
• 3D avatars
• Virtual goods
• Social network
• Games & music
• 50M+ registered users
• 10M+ uniques/month
Global unique visitor data from Quantcast: http://www.quantcast.com/imvu.com
Registered Users (millions)
0
10
20
30
40
50
60
Dec-0
5
Mar-
06
Jun
-06
Sep
-06
Dec-0
6
Mar-
07
Jun
-07
Sep
-07
Dec-0
7
Mar-
08
Jun
-08
Sep
-08
Dec-0
8
Mar-
09
Jun
-09
Sep
-09
Dec-0
9
Mar-
10
Jun
-10
Revenue
$0
$2
$4
$6
$8
$10
$12
Q1
20
06
Q2
20
06
Q3
20
06
Q4
20
06
Q1
20
07
Q2
20
07
Q3
20
07
Q4
20
07
Q1
20
08
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
'10
est
IMVU Revenue ($ Millions Per Quarter)
$40M+ Annual Revenue Run Rate
Profitable July 2009
Attractive Demographics
70% Female
60% 18+ yrs old
60% USA
Diverting new users
directly into the store
= 20% lift in number of
users buying goods
#1: Take them to the store
#2: Make them an offer they can’t refuse
$0.99 offer =
150% increase in
VIP members
#3: Give them many ways to pay
#4: Give them new ways to pay
+
=15% lift in VIP signups &
revenue
#5: Give them cool ways to pay
$50 “3D Prepaid Card”
• Collaborative effort with
specific retail partner
(Target)
• Higher price point
resulted in incremental lift
• “3D collectable art”
reinforces brand
#6: Keep your inventory fresh
4+ Million
Virtual Items
April 2004 October 2010
#7: Give them free stuff
Gifts available only
with purchase = 10%-
20% lift vs. no gift
#8: Make spending cool
#9: Let them be creative
More than 1/3 of
IMVU revenue comes
from Creators
#10: Turn users into sellers
The top 20 virtual
items sold
represent only 0.2%
of all credits spent
#11: Give them new ways to spend
3 new games = 10%
of credits sunk via
entire catalog
#12: Speak their language
Coming soon!
Tune in next
time for lift…
Shameless Plug
We’re Hiring!
www.imvu.com/jobs
Q & A
Lee Clancy
SVP Product Management
& GM Direct Revenue
IMVU Inc.
www.imvu.com/jobs
Customer
Money
Credits
IMVUCreator Credit Sink
IMVU’s Virtual EconomyIMVU’s Virtual Economy
Consider secondary markets
• Users get cheap credits (vs. IMVU’s retail price)
• Creators get to cash credits out for real dollars
• Resellers earn spread between creator sell & user buy