Failed social networking entrepreneur Mark Pincus, the force that brought the Internet both Tribe.net and Acebucks, now hopes to dominate the Facebook application market with his new casual games company Zynga. He claims he hasn't touched his $10 million in VC funding because he's in the lucrative business of selling application referrals within Zynga's Facebook games — a pyramid scheme if there ever was one.
"VideoEgg is the bait and switch. CPM is bullshit, and [Facebook's] Social Ads are bullshit," said Mark Pincus during a panel on Facebook applications at the annual Game Developer's Conference. Pincus said he was lucky to get 5 cent CPMs on his apps. What Pincus didn't mention: His competitors at Social Gaming Network are making at least $100,000 a month from their Warbook application — all from VideoEgg-run advertising campaigns.