Neopets.com is one of the most addicting web sites ever built, with its virtual pets and 160 free games and community features for kids. Harvard Business Review published a case study about Neopets showing how it reached profitability in 1999 after just four months in business. By 2001 it had 65 employees and $15 million in revenue. Today it has 70 million registered users and has an Alexa ranking of 67. Now it is taking its "feed your virtual pet or it will die" service to cell phones.

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Posted in: Business Models

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