When we first covered white label Facebook application developer LOLapps last September, the company had just closed a $3.5 million Series A funding from from Polaris. Today, the company has disclosed for the first time that its network of applications is reaching 44 million uniques per month on the Facebook Platform.
How? Rather than developing its own applications, LOLapps has developed a tool for anyone to white label their own. The company’s flagship products, Quiz Creator and Gift Creator, have been used to create “hundreds of thousands” of Facebook applications (like What Greek God Are You? and Girly Girl Gifts), LOLapps co-founder and CEO Kavin Stewart tells Inside Facebook. Collectively, those applications reach 44 million people inside Facebook per month – nearly 25% of the entire Facebook audience.
“As new trends come out, people come to our platform and create a bunch of applications around it,” Stewart says. “This lets us ride every micro-trend.”
Revenue Models: Branded Apps and Virtual Goods
Big brands have also been using the company’s tools. For example, Coach recently created a gifting application around its hand bags. However, the company does not yet have a sales team and says it is just starting to build out its product line for brands. “We only found out about the Coach application because their agency asked for help,” Stewart says.
For now, the company is making money by using the inventory across its extensive network of applications to drive traffic to applications it operates which monetize through virtual currency. For example, the company’s Adopt a Rainforest application lets users earn virtual currency by participating in offers or buy virtual currency directly.
Up Next: White Labeling Mob Wars
While the company has achieved tremendous reach through quizzes and gifts so far, it seems to be smelling revenues around social games. As such, Kavin Stewart exclusively tells Inside Facebook that LOLapps is hard at work creating a white label platform for many of the most popular types of Facebook games – starting with “Mob-style” RPGs.
So if you thought you’d seen all the Mob games out there, prepare to see hundreds or potentially thousands more. While anyone will be able to customize the look and feel of the game, LOLapps will operate all instances of the game, which will be monetized through virtual currency. Other game templates are in the works too.
“It’s pretty early, but you can see the potential,” Stewart says. “If we can figure out the right parameters, a variety of partners should be able to use our platform to promote their content and products.”
It looks like LOLapps is certainly off to a great start. Stewart says the company is profitable and is looking to expand its 18 person staff.