Tuesday, March 4, 2008

Epillager.com Entering the Social Gaming Arena

Who the hell is Epillager.com you ask?

Epillager is a company that buys underperforming apps, mostly quiz apps, and resells them after acquiring tons of new users.

How do they acquire these users?
1. Cross-promoting the apps on their other apps.
2. Forced invites.

I've always thought their arbitrage strategy was brilliant, however it relied largely on forced invites which now have been outlawed by Facebook. That really threw a wrench into their business model.

Now, they're moving in the social gaming arena.

They say they're sitting on an install base of 3.5 million users. However, according to Adonomics, their daily actives is under 20,000 and shrinking. Will it be possible to bring their install base over to the new social games apps they plan to release without violating Facebook's TOS (i.e. using email to cross-promote other apps)? For their sake, I hope so.

I suspect we're going to see a lot of other Facebook app developers move into the social gaming arena. After all, what other kinds of app developers are getting millions of dollars in VC funding?