By Ravit Lichtenberg (blog)
[LeWeb 08, Paris] Virtual goods are about connection with consumers but very few consumer services are tapping into the potential virtual goods hold, says Susan Wu, a former VC and the CEO of Ohai.
Why would people spend money on things that only exist in a database?
- Value: Like brands, spirituality, blessings, prayer—virtual goods too have value even though they are intangible.
- Context: The world’s largest seller of virtual goods is Tencent—china’s leading IM platform, boasting over $1Bil in revenue and 45% operating margin
- Purpose: People seek ways to enhance their communications. Virtual goods are used as decorative, functional, behavioral cues and add-ons. SuperPoke is a behavioral virtual good. IMVU features functional virtual goods in the form of user name.
Why people buy virtual goods :
- Capturing passion and interaction via gifting
- Create real value: game experience gets better
- Time vs money: moving interactions online
- Entrepreneurship opportunities in secondary markets
Virtual goods, concludes Wu, facilitate relationships, passion, and connection–and presents strong business model opportunities.
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