Virtual goods. Real revenue.

My newest startup adventure has seriously cut in to my blogging time lately… which means the 14 MILLION(!!!!!) people who faithfully hang on The Genius’ every word have been left cold, alone, and without even a teeny tiny Genius Snack upon which to nibble. [sigh]

Spanking for you, @viximo!

No, wait—scratch that. There will be no spankings for Viximo. They’d like that too much.

Instead, I will intentionally NOT talk them up to my legions of followers.

I wont mention the fact that they embody the Next Big Business Model or that they’re building the most kick-ass community of Rock Star design talent in the history of the world.

I wont glorify the notion that Viximo’s platform will enable online communities, gaming sites, virtual worlds, and others to generate hundreds of millions of dollars in revenue in the next 12 months alone.

I absolutely will NOT point out that Viximo is enabling major brands and ad agencies to connect with young consumers in an experiential, immersive way that builds brand loyalty, cranks the word-of-mouth engine, and *bonus!* even opens a new revenue stream.

And dammit I will NOT describe the opportunity that Viximo presents to online publishers, retailers, ad agencies, and interactive designers alike as a chance to drink from the udder of The Virtual Goods Cash Cow.

No f**king way.

For those of you scratching your heads, wondering what the f**k a virtual good is, well… I’m sorry, but I refuse to help. It’s not my place to explain that technically, virtual goods are nothing more than a series of 1s and 0s on your computer screen… or that those 1s and 0s collectively represent a $1.5 Billion market—that’s expected to exceed $7 Billion in less than 18 months.

I wont explain that virtual goods provide functional, expressive, and social value—or that they increase social interactions, and hence user engagement and time spent online.

I definitely wont point you to this article which projects that Facebook is expected to rake in $100 Million over the next 12 months—entirely through the sale of virtual gifts and myriad other virtual items (including my personal fav, food and gifts for my Fluff friend, Mar-Mar). Or this one, which celebrates Gaia and IMVU’s success generating $1M/month through the sale of virtual goods “ranging from puppy dogs to lightning bolts”.

I wouldn’t even consider bringing your attention to Second Life’s success with virtual goods ($80M annually), let alone that of our Asian friends like Nexon, which sells more Mini Coopers (virtual ones, of course) than BMW; or Habbo Hotel, which sells more furniture (virtual!) than IKEA.

Last but not least, I won’t bother regaling the efforts of retailers like Kohls, JCPenney, K-Swiss, and Sears, all of whom have celebrated notable success selling branded virtual goods on sites like Zwinky.com, Stardoll.com and others. I mean, really, who would be impressed by numbers like these:

•    2.2 million visits
•    1.8 million items sold
•    97,000 click-throughs to Kohls.com
•    ALL WITHIN THE FIRST 16 days!!!!

Clearly someone’s been drinking the Kool Aide.

But I digress… the reality is, I’m simply waaaaay too busy to spend precious time discussing any of this, and the fact is, it’s Viximo’s fault.

I’m sure they’ll regret this unfortunate [and awfully selfish] little faux pas. But in the meantime, I’m standing by my punishment.

Yes, rather than divulge even a hint of how HUGE Viximo is poised to become, I’ll say only this—they HAVE done ONE thing right: They were smart enough to hire a Bonafide Marketing Genius.

Even if they have been a little bit grabby during these first seven days.

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3 Responses

  1. Congrats — our f**king mutual friend, Michelle H, suggested I follow your blog. I’ll send her a virtual drink, but sense she’d prefer an actual one.

  2. I don’t about that, Perry. The virtual ones are calorie-free 😉

  3. Haha! Nice post Marta.

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