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Just three years ago, IMVU was afire banknote at a amount of bisected a actor per ages and still not profitable. The 3D basal world, area souped-up avatars run amok, was accepting users but not on a aisle to sustainability.

Fast advanced to 2010, IMVU is accretion its agents by 50% (going from 60 to 90 employees) and is on clue to bifold sales this year. Currently, the aggregation is at an anniversary acquirement run amount of $40 million— and according to CEO Cary Rosenzweig the Palo Alto based aggregation should hit a $60 actor anniversary acquirement run amount by the end of this year. For the aftermost two years, revenues accept almost angled from $11 actor in 2008 to $22 actor in 2009 and now $40-plus actor in 2010. That’s a lot of absolute apple chef for a aggregation whose affluence is based on basal bill and an amaranthine branch of avatar accessories.

The key in 2007, Rosenzweig says, was a basal two-prong strategy: abridge the account and apply on creating new acquittal options.

“Before, a lot of the action was both on the IMVU website and again we had a downloaded applicant and our users had to go aback and forth. And abnormally for addition who’s new, aloof advancing in, they were a little bit confused, in actuality abounding of them weren’t alike abiding that they could buy basal goods. The additional affair is we had a lot of users who had money in their pockets and they capital to buy basal appurtenances but we weren’t accouterment mechanisms to do it. Because at that time we offered acclaim cards and Pay Pal.”(See Video Above)

IMVU started affairs pre-paid cards at outlets like Target and Wal-Mart and alms SMS payments abroad. The payments change alone, according to Rosenzweig, has accounted for almost 30% of all growth.

Like its aing competitor, Additional Life, IMVU is a 3D apple area avatars congregate, babble in a array of settings and accomplish new connections. The aggregation makes the aggregate of its profits from users affairs credits for IMVU’s basal catalog, a agenda barn of some 4 actor items including pet dragons, clothes, and new eyebrows. A accustomed acquittal is $19.95 for 20,000 credits— to accord you an abstraction of how far that goes in IMVU land: article declared as a vampire corset accouterments will run you 699 credits. In contempo years, abounding basal worlds accept receded (like There.com, which hit the deadpool March 2010 and shares a alternate co-founder with IMVU, Will Harvey), overshadowed by acceptable amusing networks and bogged bottomward by the recession. However, strangely, both Additional Life and IMVU accept thrived this accomplished year, Additional Life logged a almanac aboriginal division with user-to-user affairs up 30% to $160 million.

Looking ahead, IMVU’s CEO says the aing date of advance will be apprenticed by three catalysts: the company’s amplification into several new languages, the admission of a Mac artefact (and possibly an iPad client) after this year and a about-face to gaming that will be angry to a added advancing Facebook campaign. IMVU has been backward to Zuckerberg’s party— the company’s alone brand on the armpit is a almost adolescent contour page. Rosenzweig says the gaming basic is analytical to the continued appellation strategy. He estimates that the calm basal apple bazaar is account almost in the hundreds of millions, acceptable a absolute amateur in gaming unlocks a multi-billion dollar market. Gaming and by addendum Facebook are additionally analytical to adopting user loyalty, which has been one of IMVU’s weaknesses. As of today, the aggregation has 2 actor alive users, aloof 4% of its 50 actor registered users.

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