can zynga (or anyone) afford to use facebook credits? how can a company spend 30% or rev for merchant processing?
just a random thought here, but if facebook wants 30% of facebook credit revenue, how can social gaming companies (or anyone) afford to use them? currently, merchant processing fees (credit card, paypal, etc.) are in the 1 to 5% range. i'm sure zynga is jumping for joy to see this go up to 30%. the only way this could possibly make zynga happy is if sales go up by a huge percentage. HINT: revenue must go up by much more than 30% to just maintain zynga's net.
i know apple's app store also takes 30%, but that doesn't mean it is sustainable... how can you have 30% of your top-line revenue going to merchant processing?!?! you need X percent for payroll, X for overhead, X for development, X for marketing and now 30% for merchant processing? app developers on facebook already need to spend a huge percentage of revenue on advertising. i.e. facebook already gets a huge marketing dollars from zynga (i'm guessing 10 to 30% of zynga top-line revenue). so, they now get to give them another 30%. hooray! that means facebook can get 40 to 60% (marketing budget plus merchant processing) of their revenue (assuming full-scale adoption of facebook credits). awesome! what a business!http://developers.facebook.com/news.php?blog=1&story=364



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