JENNIFER L | NET

If It’s Not Real, Does It Have Value?

07.13.07 - 08:00pm

In my youth I had a chance to get something I wanted. I went through a huge toy phase and decided on to get a Slinky because I was so fascinated with them. I would put it on top ledge of the stairs send it down the stairs and I was amused. It was all about the metal slinkies, not the cheapo plastic ones, though.

This week, I received a gift and it was a slinky. But it’s not the kind you can put on the top of the stairs and watch it go down. It only exists on the screen… within Facebook; someone had given me a virtual slinky as a gift.

Along with the slinky gift was a message, but the gift giver had sent it to me anonymously.

This was the second virtual gift (VGift) I received in Facebook. This whole idea of a virtual item doesn’t sound like it would be that appealing to a lot of people. I mean, who would actually want to buy such a thing and give it to someone else? Who would spend money on something that’s not tangible and pretty meaningless?

Or is it meaningless?

When I was offered a complimentary ticket to the first ever Virtual Goods Summit (normally $400) and couldn’t go due to a conflict, it wasn’t that big of a deal to me. It didn’t seem like a very interesting topic.

But as the time drew near, I had several conversations with others about this phenomenon and the more the topic intrigued me. Plus I had read Virtual Goods: the next big business model written by the advisor to the conference and she makes some very good points. (I still can’t believe that people are spending $10 to buy HotOrNot.com virtual flowers, though!)

A couple things that came of out my conversations:

• VGoods can be seen like online greeting cards. However, even though there’s a for-pay market, most people use the free ones.
• My friend’s cousin who’s 13 gives VGifts like crazy
• VGifts for the younger generation are more convenient. You don’t have to wrap it up, go to the post office, and send it to your friend/boyfriend/girlfriend.
• VGifts make people feel better. A friend of mine updated her Facebook status to indicate that she was feeling sad. The VGift someone gave her to cheer her up actually made her feel better. This is even more true if the person spent money on you (even if it’s $1 in Facebook).

People spending real money on very unreal things and this whole emergence of virtual economies has generated some very interesting conversations. Others thought so, too. I learned from the conference producer that 250 people had registered 24 hours beforehand. That morning, the conference was picked up by lots of press and another 100 people had showed up at the door, swiping their credit cards like crazy to get in. There were a lot of positive comments and many who had just attended the $2k Supernova Conference thought that the Virtual Goods Summit was better than Supernova.

My colleague had mentioned that they were talking about people paying for virtual real estate, cybersex, and even $25,000 virtual paintings. What’s interesting is that a real life bank has gotten into the business of granting a loan for real money to pay for a virtual painting (crazy!).

I really wish I could’ve gone. I was going to ask if the sessions were recorded, but thought if they were recorded and made available to the public, what would have been the point of paying the $400 for the conference?

Paying for the conference, as with many conferences, is for networking with others and having face to face conversations with them. I heard that people were stepping out into the hallway during the sessions to have related side conversations.

As it turns out, the sessions are available online. I’d recommend checking them out as what I’ve seen so far has been fascinating. It seems as though there’s already a significant virtual goods market in Asia.

Mainstream or Not?:
(In this session various people share their thoughts on whether or not virtual goods are mainstream and James Hong of HotOrNot talks about the virtual flowers.)

Why Virtual Goods Matter:

The Videos (5 of 6).

I think for most people, a virtual gift has more meaning given the extent of the follow factors:

1. The effort required to give the VGift (selection and the process on the site)
2. The cost of the VGift (free vs. $1 or more)
3. The message accompanying the VGift
4. The person sending you the VGift (known vs. anonymous)

For me, I would say #3 is the most important because it’s the most personal out of the four, requiring more thought and expression.

And to the person who gave me the slinky. Based on the message, I still couldn’t figure out who you are, but thanks for the gift.

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