Transcript for the Piece Audio version of Virtual Goods Real People

Online retail isn't new. Amazon has been doing it since 1995. But a new online retail opportunity is emerging, and a small company in Cambridge Massachusetts is making it all possible.

BYTE ONE

That’s Brian Balfour, Founder of Viximo and yes, he did say "Virtual goods." According to their website, Viximo will help customers set up a virtual economy, complete with virtual currency, all to sell virtual goods…..to real people, for real money.

So, what the hell are virtual goods? Maybe, Brian should keep explaining.

BYTE TWO

So, a quick look at the Viximo website shows you the type of stuff you can buy for your avatar or send to your online girlfriend. An animated diamond ring in a box, for when you want to propose to her, a birthday cake with flickering candles to say happy birthday, or a Celtics basketball that shows the world you have Celtics pride.

It all begs the questions, who's buying these things and WHY?

BYTE 4
So instead of playing the game and earning points and levels or whatnot, you just skip the fun of actually playing, and just buy your magic +5 longsword. It’s a little counterintuitive but ok, I'm open minded.

But there can't be a huge market for this stuff…..can there?

BYTE 3

A billion dollars? Okay, so there are a lot of people out there sending virtual gifts to their friends, pimping their avatars and cheating at video games. Here's how it how it all works

BYTE 7

Okay, I've been to a casino, I've lost a ton of money in poker chips, I'm starting to understand this.

BYTE 8

Brilliant! Okay, I think I get it. Maybe it's just another type of e-commerce. Brian says the strategies are even the same.

BYTE 5

Clearly there's enough here to make a real business out of virtual products. With the popularity of social networking sites like Facebook exploding, there's a huge base of customers who want to buy virtual gifts to express themselves and show their "flare".

According to Viximo, Facebook users bought $60 milllion dollars worth of virtual product last year.

Brian thinks it's vital for the long-term success of sites like Facebook.

BYTE 6

So with social networks exploding, maybe there is a very real place in the world for very fake goods.

BYTE 9

BYTES (In essence)
1) We provide all of the tools to let them run a virtual goods business model.
2) Its basically all digital items sold within social sites or games
3) Billion dollar market over the last two years
4) Why people are doing it.
5) Similar e-commerce techniques: Black Friday and holiday promotions
6) It is becoming the way to monitize the social web
7) Virtual currency (its basically a stored value….takes care of microtransaction fees)
8) What happens is people spend it a lot faster