At Viximo, we have evaluated dozens of companies selling virtual goods to identify and compare the common threads between successful and unsuccessful implementations. I will be sharing some of these insights through a weekly blog series called “Virtual Goods Keys to Success.” As the first post in this series the lesson is one which you should think about prior to implementing: making virtual goods part of the core experience rather than just an additional feature. In order for virtual goods to be successful, they need to be a core part of a product’s experience. Virtual goods need to be more...

Virtual Goods and Virtual Currency are gaining a significant amount of attention these days among the press and the technology industry as a new way to drive revenue. With online ad revenues plummeting, it is easy to understand that everyone is searching for that next big thing which will help replace lost revenue. But for a publisher, how do you cut through all the hype, and get down to truly evaluating if virtual goods are right for your product? Is Your Product Social? Virtual goods are valued by users based on their social implications. A user doesn’t send a virtual gift because...

While the size of the global virtual goods market is a robust $5.5 Billion, it is no secret that the majority of this is generated in Asia. Asia makes up about $5 Billion (or 90%) of the global virtual goods market. Are virtual goods an isolated occurrence in Asia? Will the size of the North American virtual goods market ever be equal to or greater then Asia’s? We Are Still Early North America is still in the first inning of the virtual goods ballgame. Virtual goods only started to gain serious traction in the US near the end of 2007, early 2008. The Asian virtual goods market, however,...

Virtual goods is emerging as a major business model for community driven products such as social networks, dating sites, multiplayer games, and more. Virtual Goods have proven to drive significant revenues for many companies, but compared to other models such as advertising, subscription, and fixed fees, what are the additional benefits from a virtual goods model, in regard to community based products? Value Add Business Model Everyone can agree that online ads do not contribute positively to the user experience in an online community. Mostly, this is due to that fact that users behave quite...