It was hinted at when World of Warcraft spawned a raft of so-called 'gold farmers' who played the game solely so they could earn gold to sell to other players. Then a whole WoW gold economy sprouted. Blizzard, the makers of WoW, took steps to kill this and the trading of other in-game goods like weapons, but the implications were very clear. Real people will spend real money on virtual goods. Some players were selling whole accounts for over $500 on eBay, until Blizzard squashed the practice. They were content with making $14.95/month per player. This was a very stupid move, IMO, but I digress.
Next came virtual worlds like Maple Story where the game and the play were free, but the goods cost money. Want to move ahead faster? Buy some credits. Want to finish this quest faster? Buy the xyz spell for 10 credits. As far as I know they are rolling in read dough.
Second Life is another virtual world with a real economy. SL will sell you a nice spot in their new development, or even on a new planet or space station. SL also lets players resell goods and real estate. Now we're talking! This has spawned a serious economy, but it's less compelling than in the gaming communities which have 10 times the revenue potential.
Well, Facebook got into the real virtual economy game with digital gifts a little while back. Now it seems they are selling at a $35 million dollar run rate. I kid you not.
The bottom line, literally, is that online viritual economies are a growing business. And they are not limited only to virtual worlds, or even social networks, they apply to all online communities.
"Time is money" as Ben Franklin said. If you can spend a few bucks instead of a few hours, there will always be some people who value their time highly enough to reach for their wallets.
See these posts for more.
Lightspeed Venture Partners Blog - Facebook Virtual Economy
CNET Weighs In
Is the virtual economy is the future of our real economy? Let us know your thoughts in the comments below.