A Christmas iFart explosion - Nearly 40,000 downloads and $30,000 net

Checkout this news at Venture Beat.

Those numbers are astounding! I guess it is no different from the ring-tone business - yet another business I don't really understand how it gets away with it. I just don't understand who wants a fart application. Really.

However, what is interesting about this is the revenue/business model at play.

This is a lesson I learned at a fund raising project: if you make the cost seemingly insignificant and you can drive volume, you can drive significant revenue. In this case, 99c is insignificant to most people (or it should be to 14 year olds, but usual logic doesn't apply with them) so Comm’s InfoMedia has driven decent revenue.

What is also interesting in this segment is how both the iPhone and the Nintendo Wii have created new adjacent segments in the electronic gaming market - the 'non-nerd' markets. In doing so, they've expanded the total addressable market (TAM) for this revenue/business model.

I guess then it is no surprise that, according to Venture Beat, game and virtual world funding topped $500 million in 2008.


posted by Lee Gale @ 8:45 AM,


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