Word Games Generate $90K

Dharmesh Shah shares insights about monetizing a simple word game (Wordplay.com) through advertising, demonstrating significant revenue potential for casual gaming websites with high engagement.

Key Points:

• Game Metrics:

  • 45 million games played total
  • 9.5 million unique visitors
  • 2-3,000 active players at any moment
  • Average session time increased from 4 to 14 minutes

• Monetization Test:

  • Implemented Google AdSense with just 2 ads on main game board
  • Generated approximately $90,000/month in ad revenue
  • Minimal operational costs (only hosting)
  • Removed ads after learning the revenue potential

• Business Valuation:

  • Estimated $50,000/month in stable ad revenue
  • Potential valuation: $2-3 million (applying 5x multiple on $600k annual revenue)

• Growth Drivers:

  • Social sharing features allowing players to challenge friends
  • Viral distribution through WhatsApp groups and social sharing
  • Unlimited play (versus competitors' daily limits)
  • Competitive elements with challenge/scoring system

• Development Investment:

  • Built over a weekend
  • Simple tech stack
  • Low maintenance requirements
  • No marketing spend, organic growth through social sharing