MyYearbook Profitable Thanks To Virtual Goods

Today the teen-oriented social network MyYearbook announced that the company is now profitable, thanks in large part to a new emphasis on sales of its Lunch Money virtual currency and virtual goods. MyYearbook offers a VIP Club subscription that gives users monthly amounts of Lunch Money, with three different tiers available at three different price points. Users can also buy Lunch Money directly or participate in ad offers exclusive to the site in order to obtain Lunch Money.

“The freemium model has been an important part of myYearbook’s
monetization strategy, and we remain bullish on the additional revenue
possibilities that this model will bring,” said Geoff Cook, CEO of
myYearbook. “This success allows us to focus even more on delivering
high-quality social media applications for our users while remaining the
best place to meet new people on the Internet.”

More than 33% of MyYearbook's revenue is now generated by the new revenue channels related to Lunch Money. Overall revenues for the site are up 120% year-over-year. While MyYearbook did not announce figures for revenues, co-founder Catherine Cook stated three months ago that the site's revenue was in the "eight figure range." This means that MyYearbook was earning millions of dollars thanks to its virtual goods last quarter and could be earning even more now.

Growth of VIP Club subscription rates is 55% month-over-month, indicating strong demand for access to steady amounts of Lunch Money and other site perks. Included among the perks are special advantages in social games available on MyYearbook and VIP Gifts virtual gifts. Lunch Money was launched on the site in 2007 to drive engagement, but was not directly monetized by the site until last year.

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