Five Reasons Why People Send Virtual Gifts

VIRTUAL GOODS INSIDER -- June 23 -- Last year, Viximo, released its first product in partnership with BigDates Solutions, makers of the Birthday Calendar, one of small number of Verified Applications on Facebook. Viximo’s first product is a drop-in virtual gifting system that allows developers of social networks, apps, and other community based websites to add a virtual gifting based revenue stream to their businesses. When Facebook launched its Gifts program in Feb '07, many predicted that the program would be a dismal failure. During its first year, Facebook Gifts generated an estimated $15m revenue. People are willing to pay for virtual gifts. Women are responsible for 80% of virtual giftings while men are responsible for 20% of virtual giftings. Why are people giving virtual gifts?

- Virtual Gifts as Greeting Cards

- Virtual Gifts as Signals

- Virtual Gifts as Accolades - Virtual gifts can be used in the place of ratings as the basis for a reputation system.

- Virtual Gifts as Social Play

- Virtual Gifts as Reciprocation - People give gifts, in part, because they want to elicit a positive response from the recipient, and recipients tend to feel indebted to the giver until they have reciprocated in kind.
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This post also appears on SocialNetworkingWatch.