Revenue Models for Free To Play Games

GigaOm links to a list of the Top 10 Revenue Models for Free To Play Games and illustrates seven ways to make money from MMOs.

I’m not really familiar with all of these business models but here are some very interesting figures from them:

• Advertising Deals: 14.5 Million (Habbo Hotel, 7.5 million; RuneScape, 5 million; Gaia Online, 2 million)
• Virtual Item/Currency Sales: 10.2 Million (Habbo Hotel, 7.5 million; Gaia Online, 2 million; Second Life, 500K; Puzzle Pirates, 200k)
• Subscription: 10 Million (World of Warcraft, 9 million; Lineage I/II, 1 million)
• Subscription Tier: 9.2 Million (RuneScape, 5 million; Club Penguin, 4 million; Puzzle Pirates, 200k)
• Merchandise: 4 Million (Webkinz)
• Expansion Packs: 2 Million (Guild Wars)
• Virtual Land Sale/Use Fees: .5 Million (Second Life)

Korea’s Cyworld isn’t on the list but I think the 17 million members of their virtual world spend a lot of money on virtual items. This has even prompted the South Korean government to propose a tax on these transactions.

Club Penguin, on the other hand, recently got bought by Disney for $700PHP 41,080INR 59,325EUR 667CNY 5,095 million big bucks — half of it in cash and the other half depending on future performance. Still, $350PHP 20,540INR 29,662EUR 333CNY 2,547 M is huge money. Now you got some very Happy Feet!