Do most United Games affiliates know how Mobile Ad payouts work? When pressed by United Games about the MLM nature of paying out levels of people based on credits purchased and not ‘sharing a free app’, United Games is quick to point to the ad revenue model, which nearly never works long term. But let’s look at it anyway:
“Calculate ad impressions per 100,000 users who download an app, test and discard it. A 2012 Stanford Venture Lab presentation notes that 90 percent of 100,000 users install the app and then delete it …Calculate ad impressions per 100,000 users who download an app and retain it. The Stanford Venture Lab presentation notes that 10 percent of 100,000 users install the app and retain it.” Patrick Gleeson, Ph. D., Registered Investment Adv, studioD
If people don’t buy credits for this ‘free app’ and view ads instead, what could this look like for United Games and the payout for affiliates? United Games may have negotiated different terms and rates for it’s in-game ads given the targeted nature, i.e. you are reaching sports fans, not the general public but let’s look at it as the model works today:
Ad revenue is paid on CPM, or per thousand views. It can range anywhere from .20 cents to $3.00 depending on the ad, the device it’s views on ,etc. That’s $3.00 per CPM. Since United Games is targeted towards sports players we can be generous and say $6 per CPM since it’s targeted, that’s $6 per thousand views.
Viewers will view the ads to get credits to play the game and the credits is what a United Games Affiliate gets paid on. So if their affiliates view 1000 ads a month (and I have no idea how many games played that is) it would translate to, on a high scale, $6 for the month paid to United Games. So what does that translate to in credits and paid? I have no idea.
Even if they got $200 per CPM that’s $200 for 1000 views, 10% of that paid out in any form is $20.
United Games has yet to disclose publicly the projected ad revenue for an average affiliate.
I would argue that any higher payout to affiliates is being subsidized by the $29.99 affiliate fee and $9.99 monthly fee. Essentially MLM’ing by redistributing the $150/yearly into credit payouts. But that’s pure speculation. What I do know is that they are not disclosing potential ad payouts, and that ad payouts in mobile gaming, even targeted, are pretty low, and offering a % of that to affiliates, even if it’s after you convert them to in-game credits…is pretty low.