It’s time for some serious DAPS investigative reporting!! Which basically means I read it on the Internet somewhere and I want to tell you about it. My very good friends over at techcrunch.com have gotten to the bottom of a seedy story of epic proportions involving Facebook and games like FarmVille and Mafia Wars. I believe it will be like Watergate times 200. Let me take this moment to exclaim how much I hate the latest Facebook “update”. It sucks.
How could Facebook, the most Democratic of all social networks which lets it’s user base vote on terms of use, be harboring such a dark secret about the games allowed on it’s platform? Wu-Tang Clan can explain it to ya: in-game cash Rules Everything Around Me. Dollar, dollar bill y’all. Dollar, dollar bill y’all; indeed.
…. these games try to get people to pay cash for in game currency so they can level up faster and have a better overall experience. Which is fine. But for users who won’t pay cash, a wide variety of “offers” are available where they can get in-game currency in exchange for lead gen-type offers. Most of these offers are bad for consumers because it confusingly gets them to pay far more for in-game currency than if they just paid cash (there are notable exceptions, but the scammy stuff tends to crowd out the legitimate offers). And it’s also bad for legitimate advertisers.
The reason why I call this an ecosystem is that it’s a self-reinforcing downward cycle. Users are tricked into these lead gen scams. The games get paid, and they plow that money back into Facebook and MySpace in advertising, getting more users. Who are then monetized via lead gen scams. That money is then plowed back into Facebook and MySpace in advertising to get more users…
Here’s the really insidious part: game developers who monetize the best (and that’s Zynga) make the most money and can spend the most on advertising. Those that won’t touch this stuff (Slide and others) fall further and further behind. Other game developers have to either get in on the monetization or fall behind as well. Companies like Playdom and Playfish seem to be struggling with their conscience and are constantly shifting their policies on lead gen.
The games that scam the most, win.
Oh shit. I’m scared now. What should you, the causal Facebook user, be watching out for? This garbage:
A typical scam: users are offered in game currency in exchange for filling out an IQ survey. Four simple questions are asked. The answers are irrelevant. When the user gets to the last question they are told their results will be text messaged to them. They are asked to enter in their mobile phone number, and are texted a pin code to enter on the quiz. Once they’ve done that, they’ve just subscribed to a $9.99/month subscription. Tatto Media is the company at the very end of the line on most mobile scams, and they flow it up through Offerpal, SuperRewards and others to the game developers.
Another scam: Video Professor. Users are offered in game currency if they sign up to receive a free learning CD from Video Professor. The user is told they pay nothing except a $10 shipping charge. But the fine print, on a different page from checkout, tells them they are really getting a whole set of CDs and will be billed $189.95 unless they return them. Most users never return them because they don’t know about the extra charge. Woot. Again, sites like Offerpal and SuperRewards flow these offers through to game developers. See here for more on the Video Professor scam.
We’ve all been up at 4am and watched infomercials and thought wow I could really use that. But deep down we all know these TV offers are scams. There’s even a website devoted to all these ridiculous products: complaintsboard.com . Well we’re now seeing their equivalent popping up online too.
God dammit give me specifics DAMIAN!!!! Whoa calm down little doggie. Zynga the company that makes Cafe World, Dragon Wars, FarmVille, Fashion Wars, Mafia Wars, Pirates, Roller Coaster, Scramble, Special Forces, Street Racing, Vampires, Word Twist, YoVille! and Zynga Poker reportedly makes 1/3 of their revenues come from these types of offers. So be careful playing them and don’t buy in-game cash/ points from them!
Tags: Cafe World, Dragon Wars, facebook, farmville, Fashion Wars, fb, games, local sluts, mafia wars, pirates, Roller Coaster, Scramble, Special Forces, Street Racing, vampires, Word Twist, YoVille!, Zynga Poker
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I know someone who got tricked by that IQ survey thing. Its really hard to get out of it once you sign up. Yes, its all there in the fine print, but they are banking on the fact that no one reads that stuff.
i use facebook to troll my friends. NOT play games.
OH OH OH I got one…..
the internet is serious business.
get it?
If your going to play games online just go to addictinggames.com
i love my slap chop.
It’s kind of sad how many people have become addicted to farmville and yoville, it teaches you all the things that you would never use in the real world