Q&A: IMVU's Cary Rosenzweig On "Building From The Avatar Up"
Along with announcing that its avatar and 3D virtual spaces platform had reached over 20 million registered users, IMVU officially made its public debut earlier this week after spending four years in stealth mode.
IMVU reportedly generates $1 million in revenue per month through its micro-payments economy and catalog of purchasable virtual goods, and the company plans to expand on that through a partnership with prepaid card provider InComm. Soon, prepaid cards for IMVU credits will be available in Target, 7-11, Blockbuster, and Speedway stores throughout the U.S.
IMVU CEO and president Cary Rosenzweig took some time to talk with Worlds in Motion about the now public platform, including its growing virtual goods catalog and plans for attracting new users.
Why make your public debut now?
Rosenzweig: It has to do with celebrating these milestones. The 20 million registered users was a real milestone for us. We've also had the world's largest catalog for some time now. We recently crossed the 2 millionth item we've ever created, too.
It's time that we start telling the story. I think we have a better handle on what exactly IMVU is. For a long time, there were many different elements to it that we've been identifying. It's about people, and it's about our members meeting others from around the world.
All of this came together, and we decided that it's time.
What are your plans for attracting new users?
Rosenzweig: We're trying to talk to as many influencers and experts in a variety of areas that are related to us, whether that's gaming, business, or technology. We're also going to reach out to websites and blogs related to the interest areas that many of our users care about, whether that's anime, goth, vampire fights, all kinds of things. Our objective is to focus initially on those interest areas and share with them that they have an interest in this topic.
We will do advertising, but we haven't done that yet. wW believe that's something we can do at any point in time. We're trying to create something that's durable and sustainable for a long period of time. In order to do that, we believe that being dependent on advertising is not the proper thing to do.
Can you describe IMVU's animated 3D scenes?
Rosenzweig: [They're] fairly unique. Let me set up a contrast - our founders came from There.com, which is also a virtual world. The emphasis there is on the world. The geographic space is a critical aspect. When they left there and built IMVU, they turned that philosophy on its head.
IMVU is avatar centric, not land centric. How that manifests itself is a tremendous amount of attention to the avatar itself. Our avatars are the most beautiful and expressive in the world.
Rosenzweig: They exist in virtual rooms, though "room" is a poor word to describe them. The concept is virtual space, which is a limited space that's can look like a room, or it can look like it has unlimited space. One can be in a coffee house, or flying on a carpet, or sitting in an airplane. Basically, whatever our developers - which we call "content creators" - can imagine, they can create.
How much of your catalog has been created by IMVU's own employees?
Rosenzweig: We have over 1.7 million items in the catalog, of which 500,000 are 2D stickers. 1.2 million are fully 3D virtual items. 2,000 were originally created by IMVU employees. Everything else is created by the [users].
Over 100,000 of the 20 million users are registered as content creators. Tens of thousands are actively creating items. Dozens have quit their dayjobs by developing items for sale in the IMVU catalog, as we have a very sophisticated internal economy that supports all this.
Can you describe more about that economy?
Rosenzweig: Somebody takes the credits they get from IMVU, and it goes to the item's creator. At the point where the item is sold, IMVU takes some of these credits back. We call it a sink to pull credits out of the economy to prevent inflation.Numerically, the vast majority of people who sell those items take the credit and go back into the catalog themselves to buy more stuff.
Within IMVU, there's status with being a creator. Some of them are very successful, as they've created amazing things, and lots of people buy their creations. We allow them to take those credits and trade them for cash from IMVU members, so they're in a competition with us.
We have an internal system that creates tremendous incentive, not only social, but creative and now financial, to attract the best creators. Many, many more said that it brings in a little money a month. We're proud of that.
What sort of membership levels are available?
Rosenzweig: There are others with this business model; we're not unique. The vast majority of members use IMVU for free. When they initially get started, we give them some free items and credits to get them started. Most people then purchase more credits so that they can enjoy the benefits of customizing themselves better.
In just 5 minutes, you can personalize the experience, and no one would look like you. We do offer what we call VIP subscriptions - those are for people who, in addition to buying credits, get a slug of credits each month, plus free items. They also get to join VIP groups and forums. It's another way to participate.
Comments
As a member of IMVU and a CC I have to wonder if their image is so bad they have to print exaggerated facts.
"We will do advertising, but we haven't done that yet." um there are adverts all over the web!
"Basically, whatever our developers - which we call "content creators" - can imagine, they can create." To bad they disrespect all but one CC! Customer service and Creator service is in limbo, lets say there is none.
"Dozens have quit their dayjobs by developing items for sale in the IMVU catalog, as we have a very sophisticated internal economy that supports all this." Not any more! With Peer review there isn't loads of new items entering the catalog. The only thing thats on fire in the catalog is the "illegal" music.
"We allow them to take those credits and trade them for cash from IMVU members, so they're in a competition with us." They have to go through a portal with imvu which they charge resellers a lot! What they call as a "tax"
If they really appreciated us CC's as they boast then why are there so many angry CC'S?
Posted by: Rachel | June 28, 2008 8:40 PM
While there are problems in the IMVU community, I think it only fair to point out a lot of content creators do make a profit in the IMVU economy and the most vocal portion of the community doesn't necessarily make up the majority.If IMVU was as bad as some people make it out to be, it would not have become as successful as it is today.
All companies boast, and they certainly do exaggerate numbers. People dissatisfied with their level of success, with unwelcome but necessary changes, and with the growing pains associated with a company trying to adjust to rapid increase in staffing and community size also exaggerate facts. It's called rhetoric.
IMVU is an exciting business opportunity with a unique economic model. It is more attractive to a casual style of use than its competitors. It offers talented and motivated artists a different way to make money online with very little overhead, virtually none.
IMVU is part of a growing trend where communities are empowered to create their own experience. IMVU takes this ability to a level that rivals many of the more well known alternatives. Anyone can participate in the creative process. The "content creators" have the ability to add new content to the catalog, but IMVU makes it possible for all members to recombine content in creative ways.
IMVU does make money through a system of "taxes", but the content creators have a high level of freedom to control their pricing models. Creators generally don't make a large amount of profit per sale, the power of economies like IMVU is in the ability to make money by volumes of sales, world wide, day-to-day, with no additional overhead to the creator. IMVU allows creators to sell the virtual money they receive in competition with IMVU. The "taxes" in place ensure the supply and demand for virtual currency is healthy, which benefits both IMVU and the developers looking to sell credits.
Despite the changes mentioned, sales continue. I won't go so far as to say that claims of dissatisfaction are unwarranted. I get frustrated from time to time myself, but why should business in a virtual economy be all that different than business in the "real world" economy? Change is rough, IMVU a very new kind of business opportunity and as a result it is rapidly changing. IMVU is a promising innovative opportunity, and well worth the bumpy ride.
Posted by: Troy | June 29, 2008 12:11 AM
At least Mr. Rosenzweig didn't make the claim that one of the IMVU developers has earned over a million dollars in this interview.
Posted by: Sikk | June 29, 2008 12:51 AM
Troy"If IMVU was as bad as some people make it out to be, it would not have become as successful as it is today."
Its easy to blow smoke,you should take the time to read the IMVU forums to see it isn't just me with an issue.
Troy"The "taxes" in place ensure the supply and demand for virtual currency is healthy, which benefits both IMVU and the developers looking to sell credits."
All fine and dandy, but when IMVU pumps the system full of these credit with bundles then whose at fault for having a poor economy. Oh, did I mention about Promo credits. These virtual little babies are given out like hot cakes on a Sunday morning church run. Any new member gets around 3500 of these not to mention all the free things stolen from CC's without any knowledge. (I just did a plug for IMVU)
Here is the breakdown on Promo Credits. Lets say you purchase a outfit for 1,000 credits. You pay with promo credits, the CC gets 1 dev token. 1 dev token = 10 thats right 10 real credits.
The moral of the financial story with IMVU's special micro economy is they shot themselves in the foot. Keep pumping out credits and promo credits like hot cakes.
If IMVU really wants to be this company they boast they are. Here are a few ideas Customer service, CC service. Respect all the CC's equally. Because, really without these CC's would there be an IMVU.
Posted by: Rachel | June 29, 2008 8:41 AM
I personally loved his article and am thrilled that they have begun promoting IMVU. Posting to bash here is immature and only hurts the rest of us. This is not the time or place.
IMVU is a wonderful place where people from all over the world can meet, mingle and have fun! Being able to make content for IMVU is an added bonus.
Posted by: DA5 | June 29, 2008 8:56 AM
Yes I like IMVU, I come across hard and fast. I love you DA5 your a dear friend, sorry to offend you. It should not be this way, but your time and place is the IMVU forums. I know a lot of noobs who love IMVU it could be a greater place if there was a different business model. It is very apparent that the IMVU forums are ignored.
The high quality items pushed out by the CC shows how important they are. I have been around since 2004 when it all began. It still has great potential to be top dog.
Yes it is a great place everyone should join, the benefit far exceeds any learning curve of the competition. IMVU, they have the best CC around treat them that way. Thats all I am saying.
I wish anyone who reads this to join IMVU today. You get free credits and awesome free items to start. Don't forget to show the CC's your appreciation and thank them for your items in your inventory.
Posted by: Rachel | June 29, 2008 9:35 AM
Rachel:
It should not be this way, but your time and place is the IMVU forums. I know a lot of noobs who love IMVU it could be a greater place if there was a different business model. It is very apparent that the IMVU forums are ignored.
AMEN to that!
Posted by: babeegurl1 | July 3, 2008 7:13 PM
Rachel:
It should not be this way, but your time and place is the IMVU forums. I know a lot of noobs who love IMVU it could be a greater place if there was a different business model. It is very apparent that the IMVU forums are ignored.
AMEN to that!
Posted by: babeegurl1 | July 3, 2008 7:15 PM
hey,
i need free credits iv tried spinfree and that 50 one per day but is there any more ? i cant get enough to save up for summat i want if u can find another tell me plz .
thnx
Posted by: fizzy999 | July 31, 2008 6:23 AM
IMVU is a very bad website. i spent 6 minutes on the chat thing and 2 people asked me to have "cyber sex"?
Posted by: bob | August 21, 2008 1:06 AM
Yes bob alot of people on "Chat now" are like that but IMVU is much more than just that "Chat now button" IMVU is a great mixture of all the most popular computer chat programs gameing exetra out there...it bring together things much like Myspace,AIM,Yahoo,MSN, and just a high end video game and so much more they give you many diffrent way to interact by groups public rooms of searching people in your area...very amazing how they chould bring all this together...and also have the catalog filled with many people showing there talents and so much more its rele just one of the most amazing things....
but i do personaly have a question if anyone chould answer....i heard from someone that possibly you chould change your creds into cash. im not rele sure how to go about that or what may be the rules or terms for this.
Posted by: Amanda | November 12, 2008 8:15 AM
Bob - you are complaining about "cyber sex" from IMVU, as if it's the only place that gets that kind of filth? HAH, that's been happening on AIM and other chat networks for years, since as far back as I can remember. You act as if it's a first. You can't blame IMVU because of online experiences. IMVU users are not IMVU staff or IMVU at all, they are people just like you - except younger and more "immature" compared to you I guess. But seriously, why would you bash on IMVU because of your 2 chats? That right THERE is immature. That is all.
Posted by: IMVUCE | June 19, 2009 3:34 AM