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.