Who would pay for a non-existent item? Quite a few of us, actually; in fact, U.S. virtual goods revenue on Facebook alone is expected to grow 32% to $1.65 billion in 2012, says a report from Inside Network, and shared on GamesBeat.

What are virtual goods? If you’re not the gaming type, a virtual good is simply a non-physical object purchased and used within an online game or online community. Zynga’s FarmVille, which is one of the most well-known purveyors of virtual goods, allows players to buy virtual tractors or animals for use in their farming simulation game.  Consumers use these goods within a game or community to share, socialize, decorate, and give as gifts. However, in one of the most befuddling transactions, a man paid $330,000 in real money for a virtual space station on Entropia Universe.

Here are a few more examples of platforms that use virtual goods:

• KidsWB Scooby-Doo, which uses Zoinks Points that can be earned by purchasing Scooby Doo products or engaging on the website.
• Smurfs’ Village, in which users can buy Smurfberries or a wheelbarrow of Smurfs. (Check out this story about little kids playing this game and buying its virtual goods without their parents’ knowledge. It’s amusing, as long as you weren’t the parent who got the bill!)
• Bravo’s Real Housewives of Atlanta, where players can style their own virtual housewife and compete in Virtual Housewife Throwdown.  Users can also buy items or earn points by participating in activities, like reading a blog or watching a full episode from the series.

Businesses use virtual goods to monetize and increase a consumer’s lifetime value. But they don’t just benefit businesses. Earlier this year, Sony Online Entertainment created virtual items, like cherry blossoms, which players could purchase to support the victims of the Japanese earthquake and tsunami.

How can you make virtual goods work within your gamification strategy? Amy Kim, CEO of game designer ShuffleBrain, recommends these 5 steps in Virtual Goods: Why & How They Work:

1. Create a meaningful context.
2. Prime the pump with free goods or currency.
3. Create demand for premium content.
4. Offer fresh content at a range of price points.
5. Make it easy to purchase currency.

Be sure to check out Amy’s full Slideshare presentation for all the details.

If gamification is going to be in your game plan, do your homework. Get started with these blog entries from ILD: 5 Things to Do Before You Try Business Gamification and What is Gamification for Business? A Beginner’s Guide.

To learn more about using LEC (phone) billing to allow consumers to safely and conveniently buy virtual goods within your online game or community, contact ILD Teleservices.

Every ecommerce customer counts. It doesn’t matter whether you sell gaming services or mobile ringtones, you know how much time, money, and people power your company invests in attracting and capturing the target market. But if you’re going to deploy the tactics that complete the sale, it helps to know about these four types of digital consumers:

The Credit Card Free – Nearly 30% of consumers do not have a credit card. Some are unable to obtain one, while others simply don’t want one. But what really matters to you is that these are customers who simply cannot shop online unless they purchase a pre-loaded debit card, use an alternative payment method that taps into their bank account, or ask a friend/family member to make the purchase.

The Cost Conscious – Other consumers in your target market have credit cards, but prefer not to use them. Perhaps they’re hesitant to pay interest fees to the banks. Maybe they don’t like to run the risk of high late fees.

The Security Conscious – Each year, consumers and ecommerce businesses lose billions to online fraud. But what’s more interesting is that ecommerce merchants lose 6x more revenue to the fear of fraud than actual fraud, according to the Federal Trade Commission.

The Unbanked – About 9 million U.S. households are unbanked, which means these consumers cannot (or, in some cases, will not) access traditional banking services, like checking accounts or credit cards. Instead they pay for transactions in cash or by using money orders.

Ecommerce merchants who want to capture these customers need to consider adding alternative payment methods (APMs) to their shopping cart options. APMs, like ILD Teleservices’ Bill to Phone, allow consumers to charge their purchase to their phone bill—and that allows digital merchants to attract consumers who aren’t willing or able to shop with credit cards online.

To learn more about the hassle-free, convenient APM that will lift your bottom line, contact the alternative payment experts at ILD.