1. Cary Rosenzweig
CEO
IMVU Inc.
Social Gaming + Virtual Goods Summit
London
November 12, 2010
Converting Free Users to Paying

2. • What is IMVU?
• 12 Lessons: Convert Free Users to Paying
• Games and Europe
• Q & A
Agenda
Agenda

3. What is IMVU?
An online social entertainment destination where
members use 3D avatars to meet new people,
chat, create, and play games with their friends

4. Company Overview
• Founded in 2004
• Based in Palo Alto, CA
• 100 employees
• 3 institutional rounds
• $30M raised

5. 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-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10

6. IMVU is growing and healthy
IMVU Revenue ($ Millions Per Year)
$0
$10
$20
$30
$40
2006 2007 2008 2009 2010

7. Attractive demographics
70% Female
60% 18+ years old
50% USA

8. 12 Lessons
For Converting
Free Users
To Paying Ones

9. Diverting new users directly into the store
= 20% lift in number of users buying goods
#1 Take them to the store ASAP

10. #2 Make them an offer they can’t refuse
$0.99 offer = 150% increase
in VIP members

11. 11IMVU Confidential
#3 Give them many ways to pay

12. #4 Give them new ways to pay
+
= 15% lift in VIP signups & revenue

13. #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

14. #6 Keep your inventory fresh
4+ Million
Virtual Items
April 2004 October 2010

15. #7 Give them free stuff
Gifts available only with purchase
= 10%-20% lift vs. no gift

16. #8 Make spending cool

17. #9 Let them be creative
More than 1/3 of IMVU
revenue comes from Creators

18. #10 Turn users into sellers
The top 20 virtual items sold
represent only 0.2% of all
credits spent

19. #11 Give them new ways to spend
3 new games = 10% of credits
sunk via entire catalog
IMVU = Social Entertainment

20. #12 Speak their language
Now in Swedish!
… Dutch, French,
German, Italian, Spanish,
Portuguese
… and more!

21. Q & A
Cary Rosenzweig
CEO
IMVU Inc.
cary@imvu.com
www.imvu.com/jobs
“Thanks!”

22. Customer
Money
Credits
IMVUCreator Credit Sink
IMVU’s Virtual EconomyIMVU’s Virtual Economy