Meet the Godfather Behind Mob Wars’ (Real) Money: Super Rewards

Popular Facebook game Mob Wars has recently been rumored to be the most profitable app on Facebook. While that will never be known for sure, one thing is clear: Mob Wars is making a lot of cash. Probably in the tens of thousands of US dollars per day. How?

One large reason: Mob Wars has baked incentivized CPA offers from Super Rewards directly into the game, and expertly tuned its virtual economy to drive offer conversions without significantly imbalancing the economy or damaging game play. (Mob Wars also works closely with CPA monetization firm Offerpal Media.)

Super Rewards has largely remained quiet on the PR front to date, but the company is working with many of the top developers on Facebook to monetize their games. Super Rewards partners include Mob Wars, Knighthood, Premier Football, and several of the top apps in Zynga’s family of games, including Texas HoldEm Poker and YoVille. The company has built a 14 person team across its Vancouver headquarters, New York office, and soon to be opened San Francisco office.

We recently spent some time with Super Rewards CEO and Co-founder Jason Bailey and President Adam Caplan to learn more about how the company is working with Mob Wars and other leading apps and social games to make real money.

Jason, how does Super Rewards help social app and game developers make money?

What we do exceptionally well is understanding the nuances of all the games we work with. We work closely with developers to tweak and balance their game play and economies around their virtual currencies. Developers come in making $100 a day and we can take them up to $1000 a day in short order.

How detailed do you get?

We provide a broad range of services, everything from pricing specific items to consulting. Some developers have experience with their economies in current or past apps and want our help putting offers in front of their users. Others come to us while their game is still in alpha and really value our input.

What’s the most important thing developers need to do to make money with CPA offers?

The most important thing is balancing your economy properly. You should support all kinds of players well, while remembering that your hardcore users will generate 90% of your revenue.

You want to make sure users want to obtain and spend points, while preserving the quality of the game play. For example, in Mob Wars, in order to replenish your health you can either wait for the system to revitalize you or you can “go to the Godfather” and earn some “favor points.” (see right)

So how do you measure performance?

The core metric we use is dollars per click. We hope our developers can get 25% of their daily active users through a Super Rewards page at some point. Of those, if the economy is balanced correctly, you should see a 40-50% click through rate, and ultimately a net 8-10% conversion rate. Developers get about $1.00-$1.50/conversion for US users, but less for international users. We’re lucky to get $0.06/conversion in China, but we have games operating in Europe and other parts of Asia at $0.25 and up.

So assuming all of a developer’s traffic is US traffic, the developer could see up to $83 per day per thousand DAUs. However, on an average basis across all geographies, we are about half that number. It goes without saying that there is a wide distribution around the average based on quality of app and balance of virtual currency economy.

What kind of apps are doing the best?

Games! Gifting and poking apps don’t do as well. Games that do the best are ones in which the players want to be on top of the leaderboard, collect items, or play games of chance.

Also, keep in mind at that a majority of the revenue generated per user is generated early in the lifetime of the users’ interaction with the games. People spend money developing their characters, climbing the leader board, and unlocking new elements of the game. Once their character is strong, they have many prizes, and have unlocked all the levels – naturally there is less desire to complete offers and pay. It is those top guys though that motivate the little guys to climb and thus spend.

As another example, there is one app that has about 200,000 MONTHLY active users (4-50k DAU). Yesterday, about 14,000 users hit the Super Rewards page (about 30%). The users were about 35% USA, 55% CA, AU, and UK, the remaining 10% all over the world. 5,500 clicks were generated (40% CTR). Revenues were about $4,500 for the day for an EPC of about $0.80. This is a newer app so its earnings per 1,000 DAU is a touch higher than average. Also it is an engaging game with a virtual currency so it is a great fit for us. It is a fairly international app, but nothing unusual. If it had more US users it would earning higher aver EPCs.

So those numbers scale well at the smaller DAUs, but when apps have 500k DAU the formula gets more complicated. That being said, there are PLENTY of apps making $6,000 a day on various platforms. But no single app that I know of making $60,000 a day consistently.

However, we’re just in the beginning. We’re starting to see bigger players move in to the space with higher quality apps. I expect to see some very high quality games released in the next few months.

And some people think our stuff looks hokey, but we purposely make it match the look and feel of the game, like in Mob Wars. That is just how Facebook games look.

Right. So, how much does the social network context affect monetization potential?

The social factor is definitely important in driving games where there is pride or ego involved in being on the top of the list. However, the main reason our partner apps are doing well is entertainment. Casual MMO’s outside of social networks would do just as well. Social networks are just a great way to grow quickly, and play against real friends and family instead of random people you meet in the lobby.

Thanks Jason. Any final thoughts?

We are very bullish on the space. We’ll be moving into other areas like casual games and web games soon.

Our 200 developers love Super Rewards, but they don’t want us to talk about it. But we’ve been optimizing our system over the last year, and are now ready for prime time.

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Leave a Reply

23 Responses to “Meet the Godfather Behind Mob Wars’ (Real) Money: Super Rewards”

  1. Super Rewards and the leadgen side of Facebook virtual currency - can it last? | Futuristic Play by @Andrew_Chen says:

    [...] tips inside of Facebook Justin Smith from Inside Facebook did some more digging on this. They recently had a great interview with the founders of Super Rewards, the company that’s powering much of the virtual [...]

  2. jason bailey says:

    Thanks for your time too Justin.

    Just to clarify a couple of metrics in there.

    “Developers get about $1.00-$1.50/conversion for US users, but less for international users. We’re lucky to get $0.06/conversion in China, but we have games operating in Europe and other parts of Asia at $0.25 and up.”

    That is earnings per click. On the actual conversion end the average is much close to $4-5 per completed offer.

    Also, “the developer could see up to $83 per day per thousand DAUs.”

    $83 is by no means a cap. $200 per day per 1000 DAU is completely possible. It depends on your app, currency, demographic, etc. The important thing is here is that people can and do earn absurd amounts of money in this space. They don’t do it through banner ads, they do it through integrated ads and managed platforms like ourselves and our friends at Offer Pal. Let the naysayers say what they will. I am much too busy sending out six figure wires on a weekly basis to listen to them.

    This is also not limited to facebook. People are using these methods to put on these types of numbers on MySpace and other social networks, as well as MMO’s and casual gaming sites.

  3. Game developers on social networks can expect $1.20/mth/Daily Active User « Lightspeed Venture Partners Blog says:

    [...] games, social gaming, virtual goods, virtual worlds. trackback Inside Facebook has a terrific interview with $uperRewards, one of the two major CPA ad networks for social networks (and increasingly outside of social [...]

  4. Roundup: Facebook movie casting, Yahoo shuts down Mash, and more » VentureBeat says:

    [...] covered how Mob Wars is making possibly a million dollars a month. Inside Facebook has a look a big monetization strategy — using cost-per-action incentive ads from a company called Super [...]

  5. Mikaa DD says:

    MUCHACHO VAAN CHIPPI FAAR ME BANGHOL!!

  6. Offerpal launches game monetization service for MySpace, responds to criticism » VentureBeat says:

    [...] Friends!, Mobsters, Super Pets, Heroes, Speed Racing and others. Meanwhile, rival Super Rewards says that “assuming all of a developer’s traffic [on Facebook] is US traffic, the developer [...]

  7. Paul says:

    Justin: great interview.

    Jason, I am an advertiser – how can we get in touch with you to have our offers distributed in your ad network?

    Thanks,
    P

  8. Dread Knight says:

    Very interesting article. Cheers from Romania! :-)

  9. alejandro says:

    Muy interesante casi increible un poco largo.Y yo que lojuego solo por divertido.
    It is interesting.but i just play couse is really fun,almost never read the add’s

    ALEZANDRO.

  10. SGN and David Maestri Reach Settlement over Mob Wars says:

    [...] of knock-offs after rumors surfaced that the app was doing very well financially. In August, Inside Facebook interviewed the “Godfather” behind Mob Wars’ offer-based monetization efforts, Super [...]

  11. jrsnow says:

    Super rewars may be good very marketers, but for the concumer it holds very poor professional ethics and has little respect. The company appears very fraudulant and only offers there email link for contacting the company. When having issues as a concumer, instead of resolving an issue and working with the concumer, Super Reward simply blocks out the consumer/user’s account. At this point, the user is not capable of viewing info on participated reward programs and points awarded or yet to be rewarded.

  12. Melissa Moss says:

    p

  13. Jeremy says:

    I agree with jrsnow. Your lucky if 1 out of 10 offers work. 1/2 the time even when they award me the points, I never get them anyway.

    Thier customer service is pretty much non existent.

  14. Fred Ross says:

    So far only one out of three offers paid off without me having to write again and again. I’m still waiting for the last offer to pay off and it is now going to 5 days since I completed the offer. It was supposed to pay off in two days. Two e-mails to SuperRewards ended up with them asking me to attach the confirmation of the order. I already had, I did in the first one and the second one. I have now sent a third request for the points with the confirmation attached again. I already have received the product in the offer. The company got their money, I have gotten not what I paid for.

    I know countless others having the same problem. You complain too much and offers to you are cut off altogether and the existing issues are never fixed.

    People integrating this in to their games are getting people upset with them when it is SuperRewards at fault. Then again, the game company is choosing to use them.

    It is a good idea in theory, but it is a mess right now. They are probably happy to hear I won’t use the system again, but I also won’t stop trying to get what I already paid for.

  15. Payment Industry Perspectives: Q&A with Super Rewards CEO Jason Bailey says:

    [...] Rewards, a virtual currency monetization platform for social apps and games. We did one of the first public profiles of the company last summer, when word was first getting out about Mob Wars [...]

  16. James from FaceySpacey.com says:

    …I’d like to hear from Super Rewards here. Jason you were an active commenter at the beginning of this comment wall.

    I’d appreciate it if you got your damage control team together who should be scouring the web for every time your brand is mentioned.

    What are these complaints about? What percentage of people are having these issues? And what are you doing to create better support???????

  17. lg says:

    I agree- this superrewards technique is a load of crap. You don’t get any points, and customer service only responds with canned emails.

    It’s a waste of time, and only results in 1000% more spam in your inbox. Play these games for a week and you’ll find better ways.

    It’s a flash in the pan – people won’t put up with this crap for long.

  18. David Vivino Corbett says:

    I WOULD ALSO LIKE WHAT I HAVE ALREADY PAID FOR AND I TOO HAVE SENT MANY EMAILS TO THIS RIP OFF SCAM SITE !!!…I TOOK THE IQ QUIZ AND IT SENT ME THIS TO MY PHONE !!! I WAS SCAMMED AND SENT CELL FLIRT BULLSH** READ BELOW

    —— SMS Text ——
    From: 44123
    Sent: July 4, 2009 5:32 PM
    Subject: 8568 is ur Cellflirt iqlovetest <<<IQ TEST

    8568 is ur Cellflirt iqlovetest.com PIN. Enter it online for results and chat. TXT help 4help or 888-801-6720-$9.99/mth unlimited +STD rates txt stop 2end.
    ——————————————————-
    IT WAS A STUPID IQ QUIZ….THEN THEY SENT THIS TO MY CELL AFTER I USED THE PIN ABOVE !!!!!!!!!!!
    ——————————————————-
    8568 is ur Cellflirt iqlovetest.com PIN. Enter it online for results and chat. TXT help 4help or 888-801-6720-$9.99/mth unlimited +STD rates txt stop 2end.
    —— SMS Text ——
    From: 44123
    Sent: Jul 4, 2009 5:33 PM
    Subject: Ur Cellflirt matches:

    Ur Cellflirt matches:
    Irene,F48(PA)
    Celen9,F47(PA)
    Gayla16,F50(PA)
    Mara21,F48(PA)
    Txt name+ur msg! Or send HOTNEW for hot new singles!
    ——————————————————-
    NOTICE THE TIMES IN THE TEXT THEY SENT TO MY PHONE !!!…I FOLLOWED EVERY SINGLE STEP AND THEY SENT THE BULL ABOVE WHICH I HAVE COPIED AND PASTED. AGAIN LOOK AT THE TEXT TIME THESE CAME TO MY PHONE !…I TOOK THE QUIZ AND I WAS SENT THE PIN, THEN I WAS SENT THE ABOVE TEXT !!!!!!!!!!

    IT CHARGED ME $9.99 !!!!!!!…PLEASE TELL ME WHY YOU HAVE THESE PEOPLE ON YOUR SITE IF THEY ARE RIPPING THE PEOPLE OFF ???…AND WHY DO I HAVE TO BE AGITATED EVERY SINGLE TIME BY BEING RIPPED OFF AND SPENDING VALUABLE TIME FIXING YOUR PROBLEM SITE ???

    THE NEXT TEXT WAS THIS BELOW !!!!!!
    ——————————————————-

    —— SMS Text ——
    From: 44123
    Sent: Jul 4, 2009 5:33 PM
    Subject: Welcome to the Cellflirt…
    ——————————————————-
    Welcome to the Cellflirt community! We just sent you 4 profiles to chat with. Txt STOP2cancel, HELP4help or 888 801 6720.$9.99/mth 4 ultd chat.std rates apply
    Sent via BlackBerry from T-Mobile
    ——————————————————-

    NOW WHAT MORE DO YOU WANT FROM ME ?…IT HAS BEEN ALMOST A WEEK SINCE BEING SCAMMED !!!!!!!!!
    I WANT WHAT I AM PROMISED !!!!…AND I AM ALSO NOTIFYING THE PROPER AUTHORITIES TO HANDLE WHAT HAS BECOME TOO COMMON WITH YOUR ADS !!!!!!

    THIS IS WAY TOO LONG OF A WAIT FOR PEOPLE WHO VALUE THERE TIME. I WOULD LIKE THIS TAKEN CARE OF AS QUICKLY AS POSSIBLE, I HAVE WAITED LONG ENOUGH WITH THIS EMAILING BACK AND FORTH !!!!!

    DAVID A. CORBETT

    COPIED TO:
    TOM CORBETT, ATTORNEY GENERAL

  19. kennethduncan says:

    i did to survys and i only go 14 favor points i did on this account and my paul.duncan@yahoo.com acount and i didnt get the one on that one please check it out thanks

  20. kennethduncan says:

    i sent a request about favor points on paul.duncan@yahoo.com it is paul.duncan39@yahoo.com thanks

  21. kennethduncan says:

    i would like to know where are my favor point that belong to my two accounts kendunc69@yahoo.com and paul.duncan39@yahoo.com for mobsters please i did the serveys and i should be intitle to the favor points thank you

  22. Kwanzoo - Social Inbound Marketing » Step 1: Make a popular Facebook app. Step 3: Profit! says:

    [...] unclear on the details of how companies make money off social networking sites. And after reading this interview with the Super Rewards honchos who monetize such things, I’m still pretty [...]

  23. An In-depth Look: Mob Wars says:

    [...] Per Action (CPA) offers, partnering with companies such as Offerpal Media and Super Rewards. In an Inside Facebook interview, Super Rewards CEO and Co-founder Jason Bailey stated that: “Developers come in making $100 a [...]

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