There’s no argument that social networking is not just a fad, but a tool that is changing the way people communicate, interact and do business. Currently, MySpace remains the number one social networking site over Facebook in the U.S. but will there be a new player soon?
IMVU is a company out of Palo Alto that created a virtual environment for people to meet, chat, and share pictures and music, similar to Facebook and MySpace, but there are two features that set it apart. First, IMVU is 3-D, and second its income is based from users purchasing virtual goods as opposed to selling advertising. BusinessWeek reported on January 22nd IMVU announced they received $10 million from investor Best Buy Capital.
Although the number of social network users continues to rise, there are concerns that websites like Facebook and MySpace won’t last or continue to be profitable because advertising dollars are being cut, which is their main source of income. IMVU’s business model relies on consumers for income where as the majority of social networking sites relies on corporations. Which do you think is more promising? On a budget, social network spending would be one of the first things I cut as a consumer.