The Booming Business Of Virtual Goods

- Saturday, December 17 2011 @ 04:55 pm
- Contributed by: ElyseRomano
- Views: 1,570
The concept of purchasing virtual goods may not have been around for long, but it has now become one of the fast-growing types of business online. According to the Inside Virtual Goods report, the overall market for virtual goods in the US is on its way to hitting $2.9 billion in 2012 - that's up from $2.2 billion this year and $1.6 billion in 2010.
The virtual goods industry first exploded on Facebook with the popularity of games like FarmVille and CityVille, in which users purchase currency that can be used within the game. Facebook also added a virtual gifts feature that allowed users to buy and send gifts to one another.
Dating sites quickly picked up on the success of the virtual goods game. Plenty of Fish offers "Goldfish Credits" for purchase in packages of 100, 215, or 500. With Goldfish Credits, users can send gifts to other members or find out if someone has opened their messages. Gifts are publically posted on the recipient's profile for 3 three weeks before disappearing. Each Plenty of Fish member also receives 2 virtual roses when they join the site. Roses are sent when composing a message, but each rose may only be used once during a 30 day period. Because they are a rare commodity on the site, roses are considered an especially strong indicator of a user's interest.
HOT or NOT was also an early adopter of virtual goods. The site offered virtual roses ranging from $2 to $10 that could be sent to prospective dates. Though more expensive, the $10 roses became the most popular option because they sent the strongest signals to the recipient. HOT or NOT also found that the recipients of virtual gifts were four times more likely to respond to the sender than users who did not receive a gift.
To date, Zoosk is one of the biggest virtual goods success stories. Zoosk Coins are a virtual currency used to purchase a range of features on the site. According to the site's FAQ, Coins can be used to "purchase Gifts, arrange for a Special Delivery, receive a Delivery Confirmation for your email messages, and Boost your profile." Gifts are cute graphics, like flowers and pets, that can be sent to other members. Special Delivery alerts a message recipient with a pop-up when they have received a message from a user who has purchased the feature. Delivery Confirmation notifies the buyer when their messages have been read, and Boost is a feature that puts the purchaser at the top of someone's search results or in a special place on the homepage of other interested users.
Virtual goods seem poised to become more popular than ever on dating and social networking sites. It looks like your holiday shopping list just got a little bit longer.
For more on this story you can read TechCrunch. For information on the dating sites mentioned in this article you can read our POF.com review and our Zoosk.com review.