Last June, Heyzap, the Y Combinator-funded startup that builds products around Flash gaming, launched a new micro-transaction platform for Flash that looked to offer developers a way to monetize their highly viral but difficult-to-monetize games. The platform is off to an encouraging start, and today Heyzap is taking it one step further with a new payout system that offers publishers a chance to take 15% of the proceeds. As a special promotion, the site will offer 20% of in-game proceeds to the first 1,000 publishers to sign up for the program through this link.
Heyzap’s gaming widget allows publishers to embed thousands of games in one fell swoop, and is already being used by over 35,000 publishers (you can see an example game that integrates payments below). Up until now these publishers have used Heyzap’s games to increase engagement, but haven’t been able to directly monetize the embeds. Now they’ll have an even greater incentive to use Heyzap: they’ll be able to increase user engagement while generating revenue any time a user makes an in-game purchase.
Co-founder Immad Akhund says that so far, around 15 developers have integrated Heyzap payments into their games. He expects that number to increase quickly, as many developers are currently working on games that are being built with microtransactions in mind from the start (most of the games currently using the platform integrated it after initial release).
Participating publishers will receive a 15% cut that will be taken from the proceeds first, and the remaining revenue is split with 70% going to the developer and 30% going to Heyzap (note that this has changed in the developer’s favor since the platform initially launched with a 50/50 split). Publishers will be able to monitor the money generated by games embedded on their site though a dashboard on Heyzap’s homepage.
Other players in this space include Mochi Media, which has also launched a payment platform for Flash games.
It seems that many tech barriers are being broken this year. Great work to Heyzap.
Looks like a big step in the right direction for Flash game developers: They’re passionate about their games and put in a lot of effort, but it’s been hard for them to monetize. Congrats Immad, Jude, and James!
nice work Heyzap
I would like to see Heyzap and Sprout http://sproutinc.com offer in-Sprout / in-widget payments.
Anyone know of someone doing that today?
Meaning, not redirected to another webpage.
“in-game purchase”
Like pet rocks?
Heyzap sucks.
Only 15 developers are using it? This is very low! But it’s a start.. and the payment splitting looks fair. Best of luck for heyzap.
I applaud the team at HeyZap, trying to help monetize Flash games through micro-transactions is a huge step in the right direction.
I do see a few problems however:
1) Of the 35,000 publishers hey have signed up, how many of them are notable websites with real traffic?
2) Big name publishers will laugh at a measly 15% of the transaction. In downloadable casual games, the publisher gets around 50%.
3) Unless the registration system is linked with the publishers registration system, most big publishers wont sign up. Why would they want to help register users to HeyZap’s DB?
4) Unless HeyZap makes the payment screen integrated into the SWF itself, its conversion rate will not be as high as possible. Once a user tries to purchase heyzap currency, they are forced to leave the game. This existing play experience drops conversion rates significantly.
Anyway, that is just my 2 cents.
-Kenny
Heyzap is just built upon Mochimedia, it isnt a mochimedia competitor!
I’m glad they switched to 70/30 cut and are adding a publisher cut.
Although Heyzap has achieved a lot in a relatively short period, they are still a long way behind mochimedia in terms of their offering.
Mochi allow me to embed more than 8,000 games on my site for free, and even pay me for the privilege.
It will take something special from them for me to switch my allegiances from Mochi to Heyzap for my site.