Cary RosenzweigCEO

IMVU Inc.

Social Gaming + Virtual Goods SummitLondon

November 12, 2010

Converting Free Users to Paying

• What is IMVU?

• 12 Lessons: Convert Free Users to Paying

• Games and Europe

• Q & A

Agenda

Agenda

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

Company Overview

• Founded in 2004

• Based in Palo Alto, CA

• 100 employees

• 3 institutional rounds

• $30M raised

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

IMVU is growing and healthy

IMVU Revenue ($ Millions Per Year)

$0

$10

$20

$30

$40

2006 2007 2008 2009 2010

Attractive demographics

70% Female

60% 18+ years old

50% USA

12 Lessons

For Converting

Free Users

To Paying Ones

Diverting new users directly into the store = 20% lift in number of users buying goods

#1 Take them to the store ASAP

#2 Make them an offer they can’t refuse

$0.99 offer = 150% increase in VIP members

11IMVU Confidential

#3 Give them many ways to pay

#4 Give them new ways to pay

+

= 15% lift in VIP signups & revenue

#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

#6 Keep your inventory fresh

4+ Million Virtual Items

April 2004 October 2010

#7 Give them free stuff

Gifts available only with purchase = 10%-20% lift vs. no gift

#8 Make spending cool

#9 Let them be creative

More than 1/3 of IMVU revenue comes from Creators

#10 Turn users into sellers

The top 20 virtual items sold represent only 0.2% of all

credits spent

#11 Give them new ways to spend

3 new games = 10% of credits sunk via entire catalog

IMVU = Social Entertainment

#12 Speak their language

Now in Swedish!

… Dutch, French, German, Italian, Spanish,

Portuguese

… and more!

Q & A

Cary RosenzweigCEO

IMVU Inc.cary@imvu.com

www.imvu.com/jobs

“Thanks!”

Customer

Money

Credits

IMVUCreator Credit Sink

IMVU’s Virtual EconomyIMVU’s Virtual Economy