Yesterday, Brian Balfour, founder of Viximo, posted a great article pointing to lessons that the virtual goods industry can learn from Starbucks. In many ways, coffee from Starbucks is like a virtual good whose value is determined by intangible factors such as branding, premium positioning, and affordable luxury. As a result, Starbucks is a great model for how to sell virtual goods. Brian digs into how Starbucks maximizes revenue during the holidays through holiday-focused product, strong social context, and savvy management of pricing and promotions — all strategies that are directly applicable to selling virtual goods.
Virtual Goods Insider covers the burgeoning economy of in-game items, avatar customization, virtual gifts, digital media, and other goods that exist purely in digital form. It is written and published by Ravi Mehta, a veteran of the online gaming and consumer media industries.