Dynamic Web Solutions

TechCrunch is reporting that online teen virtual world Habbo mad $74 million in revenue last year by selling virtual goods, and through advertising revenues. Most of their revenue, reportedly, is generated by selling virtual goods.

Virtual products, if people actually want to buy them, have the great advantage of being a total margin product. No production cost, no fulfillment costs (other than payment processing) make selling virtual goods an attractive revenue stream for any social network or similar service. Advertising alone, has proven to be a challenging source of revenue for most internet businesses (although the game is changing), but an increasing number of virtual goods based businesses are reporting positive numbers. Making money on the internet is all about providing unique and valuable content and these virtual goods might just be one way to differentiate your business.