1. Getting Users Over the Hump:
Boosting Conversion to Paid
Lee Clancy
SVP/GM
IMVU Inc.
October 12, 2010
Virtual Goods Summit - West

2. What’sAgenda
IMVU?
Agenda
• What is IMVU?
• IMVU’s 12 Lessons of Conversion
• Q&A

3. What’sisIMVU?
What IMVU?
An online community 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
Registered Users (millions)
• 3D avatars 60
• Virtual goods 50
40
• Social network
30
• Games & music 20
• 50M+ registered users 10
0
• 10M+ uniques/month Mar-07
Mar-06
Mar-08
Mar-09
Mar-10
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Jun-06
Sep-06
Jun-07
Sep-07
Jun-08
Sep-08
Jun-09
Sep-09
Jun-10
Global unique visitor data from Quantcast: http://www.quantcast.com/imvu.com

6. $0
$2
$4
$6
$8
$12
$10
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Q1 2007
Q2 2007
Q3 2007
IMVU Revenue ($ Millions Per Quarter)
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Profitable July 2009
Q1 2009
Q2 2009
Q3 2009
Q4 2009
$40M+ Annual Revenue Run Rate
Q1 2010
Q2 2010
Q3 '10est
Revenue

7. Attractive Demographics
70% Female
60% 18+ yrs old
60% USA

8. #1: Take them to the store
Diverting new users
directly into the store
= 20% lift in number of
users buying goods

9. #2: Make them an offer they can’t refuse
$0.99 offer =
150% increase in
VIP members

10. #3: Give them many ways to pay

11. #4: Give them new ways to pay
+
15% lift in VIP signups &
= revenue

12. #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

13. #6: Keep your inventory fresh
4+ Million
Virtual Items
April 2004 October 2010

14. #7: Give them free stuff
Gifts available only
with purchase = 10%-
20% lift vs. no gift

15. #8: Make spending cool

16. #9: Let them be creative
More than 1/3 of
IMVU revenue comes
from Creators

17. #10: Turn users into sellers
The top 20 virtual
items sold
represent only 0.2%
of all credits spent

18. #11: Give them new ways to spend
3 new games = 10%
of credits sunk via
entire catalog

19. #12: Speak their language
Coming soon!
Tune in next
time for lift…

20. Shameless Plug
We’re Hiring!
www.imvu.com/jobs

21. Q &A
Lee Clancy
SVP Product Management
& GM Direct Revenue
IMVU Inc.
lclancy@imvu.com
www.imvu.com/jobs

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

23. Consider secondary markets
• Users get cheap credits (vs. IMVU’s retail price)
• Creators get to cash credits out for real dollars
• Resellers earn spread between creator sell & user buy