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Despite its large growth, the company has been able to keep its costs low. Companies such as Linden Lab, which runs virtual world Second Life, have enormous server costs because they have to maintain a physically interconnected virtual world 24 hours a day.But IMVU’s virtual spaces are limited to rooms or scenes (like the beach or an estate), and its content is user-generated.IMVU grew its revenue primarily by increasing the sale of virtual currency to its members, who use that currency to purchase virtual goods ranging from clothing for their avatars to furniture for their rooms.Since 2004, IMVU’s own users have created more than 3 million items, giving IMVU the biggest catalog of virtual goods in the world.They keep the vast majority of the credits proceeds from sales of their virtual goods.If developers want to cash out, they can do so through a free market economy that allows them to sell credits directly to third-party registered credit brokers, who buy and sell credits on third-party websites.With all of these changes, revenue has grown from roughly .5 million in the first quarter of 2008 to an expected million-plus in the third quarter of 2009.

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For the past three months, the company has been profitable, Rosenzweig said.After they sell credits, these brokers transfer the credits to the buyer on IMVU, where IMVU takes a small processing fee in the form of credits.

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