Mochi micropayments

TechCrunch reports on Mochi Media’s new micropayment platform for Flash games. Having struggled to make money with ad supported Flash games, they have turned their attention to a model for micropayments. You can play the games for free, but if you want better weapons, new levels, etc, you make a micropayment. And these games can be embedded in anyone’s site, anywhere on the web. The results so far are very promising – revenue has increase 1300% over ad supported games.

Toy makers should be paying attention to the Mochi model. Virtual unlocks are already becoming a popular way to drive toy collection and engagement with toy brands. But unlike the cost-intensive MMOs of the last few years, these are simpler games with lower upfront costs and the unlocks are more parsimonious – you get a single virtual item or upgrade, not a 12-month subscription like Webkinz. This model is inherently better for driving collection and better as a business. And it is also more social and distributed which is where the web is right now.