Analyst: Can you share some of the metrics of your business—ARPU, conversion rate between paying versus non-paying user?

Siqi Chen: In the case of Friends For Sale, conversion rate is about 1%, which is really low. And out of the people who pay for the game, we extract most of our revenue from users who pay us thousands of dollars and in some cases tens of thousands of dollars at a time. Our blended ARPU works out to about $0.45 per DAU per month.

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Lightspeed Venture Partners Blog

To be a profitable company you need a 1% conversion rate of paying game players if you have a million daily players and some of those paying members spend 10s of 1000s of $ a year. Seems kooky, but there it is. Scale creates models. (via tedr)