Just want to share with you all how Roblox works in the perspective of a player that most people probably are not aware of. I am an actual player, a Content Creator and a Game Developer inside of the Roblox System.
From what I have seen, Roblox core strength lies in the internal marketing power. Very rarely where you'll see a Roblox Ads circulating.
The way their marketing works is done through a closed loop of socialization. Children that plays the game often recommend it to their friends and in turn recommend to their friends. Since the platform is free and the game is free, Roblox became the next closest thing that kids have to buying mobile games.
Over time, as children grew in the System, they'll naturally begin to spend money in the system called Robux. A digital currency created by Roblox where players can spend them to customize their character, unlocking game items, etc.
Some kids are inspired to be YouTubers, so they make contents for the games which is entirely free promotion for Roblox. Some kids are inspired to be game developers, so the platform gets a boost in new games without hiring anyone.
Roblox also compensate contributors who are YouTuber and Game Developer.
With just these few things, Roblox literally has the best marketing system that any game company would die for.
"From what I have seen, Roblox core strength lies in the internal marketing power." - How can this be further monetized? Doesn't most of the income come from buying RoBucks and making purchases in-platform? The kids I know who are 7-17 aren't known for having deep pockets.
dubhan
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Very good analisis and spot on. I used to work at a public library and would see the little kids come in to play Roblox on the public computers.
These very same facts have me looking at RBLX for my future investments.