When an earthquake struck Haiti in January 2010, many organizations rallied around the cause and started to raise money for relief efforts. Viximo did its part by helping partner social networking sites develop fundraising campaigns for Haiti using themed virtual goods. For complete details on the programs we implemented, download our whitepaper, Virtual Goods: Raising Money for Charity Through Virtual Goods and 4 Keys to Success.

A social-cause related virtual goods program works in the following way:

(1) design a unique virtual good inspired by a humanitarian cause (in this case, the earthquake in Haiti);

(2) leverage the social and in-game dynamics surrounding virtual goods, and position gifting or buying the special virtual item as a sign of support for the cause;

(3) donate all or part of the proceeds from the sale of the goods to charity.

The model has been adopted across the industry. Several other MMO and social gaming studios, such as Zynga, Sony Online Entertainment and myYearBook, ran similar campaigns that raised millions of dollars for Haiti aid through virtual goods sales.

With the February 2010 earthquake in Chile, another opportunity has arisen for publishers to implement a cause-related virtual goods strategy. The opportunity to activate an online community around philanthropic causes while raising real money is clear, but this type of program offers additional benefits to publishers.

• Opportunity to Increase Goodwill

Users are likely to gravitate towards a network, or brand, that enables them to be “better people” and where their money is directed with purpose. This is turn can lead to users being more engaged with the site, investing more in currency-generating activities and inviting others to join. If a social network implements an ongoing connection to social causes, such as launching virtual goods programs for both Haiti and Chile earthquake relief, the brand would benefit from enduring positive associations with philanthropy.

• Opportunity to Convert Non-Users to Customers

As discussed in Viximo’s Valentine’s Day whitepaper, non-users are more likely to send their first virtual good at a special time, such as a holiday. But social causes that hit close to home are also special occasions because they create a similar sense of time-based urgency. Cause-related virtual goods give publishers a chance to cast a wider audience net because even non-users may want to get involved with virtual goods if their actions will help them donate to a good cause. In fact, one Viximo partner reported that 80% of Haiti-themed virtual good purchases were made by users who had never purchased any virtual currency before.

• Opportunity to Increase Overall Revenues

On the first day of the Haiti virtual goods promotion, a Viximo partner saw a 1000%+ increase in the number of page views for its Gifts. Within 10 days, this had stabilized to an over 800% increase – a significant swell in engagement (for detailed statistics, click here). Introducing a timely virtual good that tied in with a relevant social cause clearly resonated with online users. During times of major disaster, such as the earthquake in Haiti, it is most common for publishers to donate 100% of the fundraising proceeds to charity. Other times, when a portion of the proceeds is donated, a valuable revenue opportunity for publishers is presented.

• Opportunity to Increase Customer Lifetime Value

First-time buyers of virtual goods typically purchase $6-7 packages of currency, which is far greater than the amount they need to spend on the charity virtual good, priced at $1-3. This means that new users, after making their charity good purchase, will have the ability to send more gifts (of which the publisher will receive 100% of the revenue) and could become long-term customers of virtual goods who continue to generate revenue over the course of their lifetime.

So, how can publishers maximize this revenue opportunity and implement successful charity virtual goods campaigns? For detailed data, step-by-step best practices, and insights on developing a content, integration and promotion strategy for charity virtual goods, click here to download our whitepaper.