PageFad LLC formed last year to launch onlineathletes.com, a simple fantasy sports website where Facebook users could transform their online friends into a sports team.Six sports are available, and users are encouraged to enter their teams to compete against others in major tournaments. PageFad LLC has turned this simple online diversion into a serious source of revenue through microtransactions, encouraging players to spend $1.25 for a look at the opposing team's stats or $2.50 to boost your team's energy levels.
While the virtual goods market often skews female, the 3 million users of onlineathletes.com are primarily male, young, and technology-oriented. CEO Adam Alfin predicts that the company is on track to gross $1.2 million dollars of revenue in its first year. About 70% of that figure comes directly from the sales of virtual goods and perks to players.
Players can also acquire goods in onlineathletes.com by completing advertiser surveys and signing up for services from sponsored advertisers like Netflix, Blockbuster, Apple, and Sony. So while only $840,000 of the total gross comes directly from consumers, it's the lure of virtual goods and bonuses that drive sponsors and partnerships.
PageFad LLC currently supports seven full-time employees, and is developing sports game applications for the iPhone and Blackberry mobile platforms.
I'd love to see the breakdown of the exact revenue streams (even on a per product basis). Sounds like they've got a good deal going.
Only flaw I could see with this is that one has the ability to max out one's abilities via paying money. I could see that becoming disillusioning to people who don't invest the money others do.
Posted by: Steven Savage | January 07, 2009 at 01:46 PM