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According to a report at VentureBeat, the six-member team at Backflip Games has earned more than $1.75 million from its iPhone apps in the company’s first seven months of business. The team attributes its success to effective use of in-game advertising and cross-promotion.
Backflip’s first game, Ragdoll Blaster, was developed in six weeks, and emerged as a moderate hit. The company’s next release, the free trashcan hoops simulator Paper Toss, topped the App Store’s free app charts for several weeks, and earned more than five million total downloads.
Backflip capitalized on Paper Toss’s success by incorporating the AdMob advertising platform. Currently, ads earn the company more than $125,000 a month — roughly 50 percent of Backflip’s monthly revenue.
Paper Toss was also used to promote other titles in Backflip’s catalog, spurring additional sales for Ragdoll Blaster and its latest releases, Harbor Havoc 3D and Paper Toss: World Tour.
“We thought we would count on app sales alone,” Backflip chief executive Julian Farrior tells VentureBeat. “But we backed into this ad-based revenue model.”
Farrior plans to expand the company to 12 employees in 2010. The developer’s next project, Ragdoll Blaster 2, is set to hit the App Store in January.
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