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It accommodates younger users (who don’t have credit cards) with the sale of prepaid cards in 24,000 outlets, and it also lets users buy credits by filling out surveys or special offers from Offerpal.

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.

Since 2004, IMVU’s own users have created more than 3 million items, giving IMVU the biggest catalog of virtual goods in the world.

Users can create their own avatars for free, but IMVU got a big boost this summer after it launched a new user interface.

Rosenzweig says he admires companies such as China’s Changyou and hopes to duplicate their success.

He’s speaking up about the success now because IMVU hopes to land partners that can drive more traffic to the site.

In virtual worlds/virtual chat, its rivals include Meez and Gaia Online. About 69 percent are female, largely because of the fashion-oriented nature of the site. That includes expansion into non-English speaking geographies.

That means that IMVU doesn’t have to buy or lease a lot of new servers or hire a lot of artists as it adds more users or catalog items.

“I think it’s important that potential partners know which companies in this space are going to be around tomorrow,” Rosenzweig said.

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.

Most recently it raised million in January from Best Buy Capital, Menlo Ventures, Allegis Capital, and Bridgescale Partners.

Rivals include Facebook and My Space on the social networking level. Rosenzweig said there are plenty of avenues for expansion in the future.




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