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	<title>Board of Innovation &#187; virtual goods</title>
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		<title>Taatu and Virtua Gym on Pitcharena.com</title>
		<link>http://www.boardofinnovation.com/2009/06/05/taatu-and-virtua-gym-on-pitcharenacom/</link>
		<comments>http://www.boardofinnovation.com/2009/06/05/taatu-and-virtua-gym-on-pitcharenacom/#comments</comments>
		<pubDate>Fri, 05 Jun 2009 15:43:37 +0000</pubDate>
		<dc:creator>Nick</dc:creator>
				<category><![CDATA[Entertainment & tourism]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[attention]]></category>
		<category><![CDATA[community]]></category>
		<category><![CDATA[free]]></category>
		<category><![CDATA[micro-payment]]></category>
		<category><![CDATA[virtual goods]]></category>

		<guid isPermaLink="false">http://www.boardofinnovation.com/?p=898</guid>
		<description><![CDATA[Following our previous post on wantz.it and tweetag, two other social applications that presented during Pitch Arena were Taatu and Virtua Gym. For these two ventures we also briefly described their business model. We didn&#8217;t go in depth, but mapping out the four social applications gaves us the possibility to quickly compare them with each [...]]]></description>
			<content:encoded><![CDATA[<p>Following our <a href="http://www.boardofinnovation.com/2009/05/26/pitcharenacom-how-to-make-money-online-via-social-apps-24/">previous post on wantz.it and tweetag</a>, two other social applications that presented during <a href="http://www.pitcharena.com">Pitch Arena</a> were Taatu and Virtua Gym. For these two ventures we also briefly described their business model. We didn&#8217;t go in depth, but mapping out the four social applications gaves us the possibility to quickly compare them with each other. Taatu is already active for several years and relies on a more complex business model than Virtua Gym.</p>
<h3>Taatu</h3>
<p><img class="new" src="http://www.boardofinnovation.com/wp-content/uploads/2009/05/taatu.jpg" alt="" /><br />
<a href="http://www.taatu.com/">Taatu</a> relies on two big revenue loops in their <strong>business system</strong>. First of all they offer a 3D chat experience to their user base, an active crowd of youngsters. The attention of this group is sold to advertisers who can create branded content and events inside the 3D world of Taatu. Another stream of revenue comes from many small micro-payments inside their virtual world. Users can buy virtual items that will extend their community experience. Also, the users of taatu can create goods that others can buy, which leads to a virtual economy. Different to other virtual economies, the virtual currency can&#8217;t be exchanged to dollars. Money can therefore only be transferred from the users to Taatu company.</p>
<h3>Virtua Gym</h3>
<p><img class="new" src="http://www.boardofinnovation.com/wp-content/uploads/2009/05/virtua_gym.jpg" alt="" /><br />
During their 8 minute pitch shown below, the two brothers behind <a href="http://www.virtuagym.com/">Virtua Gym</a> describe the different business models that they are using. Since they are still in a very early stage, it difficult to determine which part of their business concept will become their most important revenue stream. Once they have built up their service towards gym users, they will have an interesting user base to sell to niche advertisers.</p>
<p>This leads to a typical <strong>free advertising based business model</strong> where the basic service is offered for free in exchange for advertising. Many online services try to rely on this business concept but only a few of them manage to become sustainable. A large user base, even in a niche topic is vital to attract large advertisers. Therefor Virtua Gym is working to add an experience on top of their service where users can have an off-line but real-time sport competition against other people.</p>
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