Buy Products or Get Rewards?

January 25th, 2012 by

While traditional models of selling games online is alive and well with veterans of the B2C sector, we have also witnessed the rise of alternative, social approaches to online marketing strategies.

In this post, we take a look at the online video game industry and analyze two different marketing strategies utilized by B2C companies. Our goal is to see how these different strategies can be applied to other e-commerce verticals.

When I think about the major social video game companies producing massively multiplayer online (MMO) games, I think about Electronic Arts, Activsion Blizzard, and wunderkind Zynga. These are the corporations structuring our play on the Internet.

It goes without saying (but I’ll say it anyway), that the way we play and pay for video games today is different than it was 25 years ago. Back then, I had an Atari 7800 with 4KB of RAM. I could buy a cartridge of Joust from Toys “R” Us, put the game in the console and I was ready to be interactively entertained. Read the rest of this entry »

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Revenue Recognition in Software Delivery

January 18th, 2012 by

Revenue recognition for software products can be a complex topic, but following these few simple guidelines will make consulting with your accountant a more pleasurable experience.

It’s all about accounting

A fundamental principle of revenue recognition states that money is considered revenue only if a product or service has been fully and completely delivered.

Software Product Revenue Recognition

Immediate Delivery

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