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<generator>Blogsmith http://www.blogsmith.com/</generator><item><title><![CDATA[Free Realms: Guesstimating monthly revenue using the 89/10/1 Rule]]></title><link>http://massively.joystiq.com/2009/06/13/free-realms-guesstimating-monthly-revenue-using-the-89-10-1-rul/</link><guid isPermaLink="true">http://massively.joystiq.com/2009/06/13/free-realms-guesstimating-monthly-revenue-using-the-89-10-1-rul/</guid><comments>http://massively.joystiq.com/2009/06/13/free-realms-guesstimating-monthly-revenue-using-the-89-10-1-rul/#comments</comments><description><![CDATA[<p>Filed under: <a href="http://massively.joystiq.com/category/mmo-industry/" rel="tag">MMO industry</a>, <a href="http://massively.joystiq.com/category/making-money/" rel="tag">Making money</a>, <a href="http://massively.joystiq.com/category/free-to-play/" rel="tag">Free-to-play</a>, <a href="http://massively.joystiq.com/category/free-realms/" rel="tag">Free Realms</a></p><img hspace="4" height="225" width="225" vspace="4" border="1" align="right" alt="" src="http://www.blogcdn.com/massively.joystiq.com/media/2009/06/free-realsm.jpg" />In case you haven't heard, <a href="http://freerealms.com"><em>Free Realms</em></a> just <a href="http://massively.joystiq.com/2009/06/12/free-realms-breaks-the-3-million-mark/">broke the 3M user mark</a> and is averaging 500,000 new users per week. With <a href="http://station.sony.com">SOE</a>'s aggressive Saturday morning cartoon <a href="http://massively.joystiq.com/2009/05/24/free-realms-tv-spot/">advertising strategy targeting kids</a>, it may actually continue to grow at this pace. Any subscription MMO would be happy as a pig in slop at these numbers because of the guaranteed revenue stream, but what about a F2P/RMT MMO?<br /><br />We recently discovered an interesting tool to guesstimate F2P/RMT MMO earnings called the "<a href="http://massively.joystiq.com/2009/05/22/plenty-of-gaming-options-for-todays-tweens/">89/10/1 Rule</a>." This rule says that 89% of your players won't spend anything, 10% will spend the bare minimum, and the remaining 1% will spend extravagantly.<br /><br />After chatting with <a href="http://massively.joystiq.com/category/meet-the-team">Massively staff</a> who play <em>FR</em>, we came up with some numbers to play around with. The bare minimum in <em>FR</em> is $5 per month for a basic subscription. We also think the average heavy spender could easily drop $30 in a month. Let's apply the rule, shall we?<br /><br />
<ul>
    <li>2,670,000 spend nothing ($0 total)</li>
    <li>300,000 spend $5/month ($1,500,000 total)</li>
    <li>30,000 spend $30/month ($900,000 total)</li>
</ul>
The grand total using the "89/10/1 Rule" is $2.4M revenue per month. That fancy, made-up number isn't too shabby at all. A subscription MMO charging $15/month would need 160,000 subscribers to pull in the same amount. Now, if only we could get some confirmation (nudge nudge, wink wink)...<p style="padding:5px;background:#ffffcc;border:1px solid #ffff99;clear:both;"><a href="http://massively.joystiq.com"><img src="http://massively.joystiq.com/media/feedlogo.gif" alt="Massively" style="float:left;padding:0 5px 5px 0;" /></a><a href="http://massively.joystiq.com/2009/06/13/free-realms-guesstimating-monthly-revenue-using-the-89-10-1-rul/">Free Realms: Guesstimating monthly revenue using the 89/10/1 Rule</a> originally appeared on <a href="http://massively.joystiq.com">Massively</a> on Sat, 13 Jun 2009 20:00:00 EST.  Please see our <a href="http://www.weblogsinc.com/feed-terms/">terms for use of feeds</a>.<br style="clear:both;"></p><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href="http://massively.joystiq.com/2009/06/13/free-realms-guesstimating-monthly-revenue-using-the-89-10-1-rul/" rel="bookmark" title="Permanent link to this entry">Permalink</a>&nbsp;|&nbsp;<a href="http://massively.joystiq.com/forward/19066388/" title="Send this entry to a friend via email">Email this</a>&nbsp;|&nbsp;<a href="http://massively.joystiq.com/2009/06/13/free-realms-guesstimating-monthly-revenue-using-the-89-10-1-rul/#comments" title="View reader comments on this entry">Comments</a>]]></description><category>f2p</category><category>free-realms</category><category>free-to-play</category><category>guesstimations</category><category>real-money-trading</category><category>rmt</category><category>soe</category><category>sony-online-entertainment</category><dc:creator><![CDATA[Brooke Pilley]]></dc:creator><pubDate>Sat, 13 Jun 2009 20:00:00 EST</pubDate></item></channel></rss>
