How do metaverse platforms generate revenue?

This blog post has been written by the person who has mapped the metaverse market in a clean and beautiful presentation

Metaverse platforms generate revenue through five primary business models that collectively produced $31.6 billion in gaming revenues alone by 2025.

Understanding these monetization strategies is crucial for entrepreneurs and investors looking to enter this rapidly expanding market. The most successful platforms combine multiple revenue streams, from virtual real estate sales to enterprise subscriptions, creating diversified income portfolios that withstand market volatility.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

What are the core business models that metaverse platforms currently use to make money?

Metaverse platforms operate on five distinct revenue models that capture value from their immersive environments.

Virtual goods and digital asset sales form the foundation, where platforms sell NFTs, avatar skins, and limited-edition items that appreciate on secondary markets. These generate both initial sales revenue and ongoing royalty streams through smart contracts built into each transaction.

Virtual real estate monetization involves selling blockchain-based land parcels that users can develop, lease, or resell. Platforms like Decentraland and The Sandbox collect revenue through primary land auctions, capturing 100% of initial proceeds, plus 2-5% transaction fees on all future resales.

Advertising and brand partnerships leverage immersive environments for premium engagement. Major brands pay for virtual showrooms, sponsored events, and contextual billboard placements that command higher CPMs than traditional digital advertising.

Gaming-centric revenue streams include microtransactions for cosmetic items, battle passes granting time-limited rewards, and play-to-earn mechanics where users earn convertible tokens while platforms collect minting and withdrawal fees.

How do metaverse platforms monetize virtual real estate and land ownership?

Virtual real estate generates revenue through four primary mechanisms that create sustainable income streams for platforms.

Primary land sales occur through auction systems where platforms retain 100% of initial sale proceeds. These limited parcels create artificial scarcity that drives premium pricing, with some virtual lots selling for hundreds of thousands of dollars during peak demand periods.

Secondary market transaction fees provide ongoing revenue as landowners trade parcels. Platforms typically charge 2-5% commissions on peer-to-peer resales, creating passive income that scales with market activity and land appreciation.

Leasing and sponsorship commissions emerge when landowners rent virtual spaces to brands for seasonal pop-ups, concerts, or virtual offices. The platform collects a percentage of rental income, often 10-15%, while providing technical infrastructure and promotion support.

Infrastructure service fees apply when users deploy custom 3D builds, interactive scripts, or event support systems on their owned land. These technical services generate additional revenue while increasing user engagement and platform stickiness.

If you want to build on this market, you can download our latest market pitch deck here

What role do digital goods, skins, and NFTs play in generating revenue for these platforms?

Digital goods and NFTs create revenue through scarcity-driven economics and smart contract royalty mechanisms that generate both immediate and long-term income.

Limited-edition NFT drops capitalize on artificial scarcity to drive premium pricing and secondary market speculation. Platforms release exclusive avatar skins, virtual clothing, and collectible items in small quantities, often selling out within minutes and commanding high resale values.

Royalty mechanisms embedded in smart contracts enforce 5-10% fees on all future resales of digital items. This creates passive income streams that continue generating revenue long after the initial sale, providing platforms with recurring revenue tied to secondary market activity.

Utility-driven NFTs extend beyond cosmetic items to include functional assets like virtual tools, access passes, and membership tokens. These items often require recurring subscriptions or usage fees, creating ongoing revenue relationships with users rather than one-time transactions.

Cross-platform interoperability increases NFT value by allowing items to function across multiple metaverse environments. Platforms can charge protocol fees for enabling asset portability, creating new revenue streams from interconnected virtual economies.

How do advertising and brand partnerships contribute to income inside metaverse environments?

Advertising revenue in metaverse environments leverages immersive experiences to command premium rates that significantly exceed traditional digital advertising CPMs.

What are the most profitable use cases or verticals for monetization within the metaverse in 2025?

Gaming dominates metaverse monetization with $31.6 billion in global revenues, representing the highest-volume and most mature revenue vertical.

E-commerce and virtual goods capture 20% or more of total platform revenues through digital asset sales, NFT marketplaces, and virtual shopping experiences. This vertical benefits from high profit margins since digital goods have no physical production costs.

Enterprise services and workflow digitization generate 42.8% of total metaverse revenues through business-to-business applications. These include virtual training modules, digital twin simulations, and collaborative workspaces that command premium pricing due to their productivity benefits.

Advertising and brand activations project $2.2 billion worldwide in 2025, driven by brands seeking immersive engagement opportunities that traditional media cannot provide. The high engagement rates and social sharing potential justify premium advertising rates.

Virtual events and education represent high-margin, scalable opportunities through digital ticketing, subscription learning platforms, and certification programs. These verticals benefit from global reach without physical venue limitations.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

How do metaverse platforms generate revenue from gaming-related activities and in-game economies?

Gaming revenue in metaverse platforms centers on microtransactions that generate consistent average revenue per user (ARPU) of $83.5 across gaming-focused virtual worlds.

Microtransaction systems sell cosmetic items, power-ups, and premium content that enhance gameplay without affecting core mechanics. These small, frequent purchases create steady revenue streams while maintaining free-to-play accessibility that drives user acquisition.

Play-to-earn mechanics allow users to earn platform tokens convertible to fiat currency or other cryptocurrencies. Platforms generate revenue through token minting fees, withdrawal charges, and transaction costs while incentivizing increased user engagement and retention.

Battle passes and season passes offer time-limited subscription models that grant exclusive cosmetic NFTs, experience point boosts, and early access to new content. These create urgency-driven purchases and recurring revenue cycles that align with content release schedules.

In-game marketplace commissions generate passive income as players trade items, characters, and virtual assets. Platforms typically charge 5-10% fees on peer-to-peer transactions while providing secure escrow services and fraud protection.

If you want actionable data about this market, you can download our latest market pitch deck here

Which metaverse platforms or startups have been financially successful, and what are they doing differently?

Four platforms demonstrate distinct approaches to successful metaverse monetization through unique value propositions and community-focused strategies.

Roblox generates revenue through avatar marketplace transaction fees and Developer Exchange royalties, leveraging its massive user-generated content ecosystem. With 70 million daily active users, the platform succeeds by empowering creators to build and monetize their own experiences while collecting platform fees on all transactions.

Decentraland operates as a fully decentralized virtual world that monetizes through land auctions, MANA token transaction fees, and event sponsorship revenues. Their key differentiator lies in community-driven governance that gives users ownership stakes in platform decisions and revenue distribution.

Fortnite combines cosmetic skin sales with branded in-game events and licensing partnerships with major entertainment properties. Their success stems from integrated intellectual property collaborations with Marvel, Star Wars, and other franchises that create exclusive, time-limited content experiences.

The Sandbox differentiates through low-barrier maker tools and educational scholarships that democratize content creation. They generate revenue from land sales, NFT creator royalties, and game development competitions while building a community of empowered creators who drive organic platform growth.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

How do subscription models, freemium features, or premium access work in metaverse ecosystems?

Subscription models in metaverse platforms operate on tiered access systems that balance free user acquisition with premium revenue generation.

Freemium structures provide basic platform access at no cost while gating premium features behind paid upgrades. Users can explore virtual worlds, participate in basic social activities, and access standard avatar customization, but advanced features like exclusive zones, enhanced avatar options, and priority customer support require subscription payments.

Monthly subscription tiers typically range from $9.99 for basic premium access to $49.99 for VIP memberships. These subscriptions unlock benefits including reduced transaction fees, priority event access, exclusive virtual real estate areas, and advanced creation tools that appeal to power users and content creators.

Enterprise licensing operates on Software-as-a-Service models with annual fees ranging from $10,000 to $500,000 depending on user count and feature requirements. These B2B subscriptions provide custom virtual workspaces, training module integration, advanced analytics dashboards, and dedicated technical support.

Hybrid models combine subscription benefits with transaction-based revenue. Premium subscribers might receive reduced marketplace fees, exclusive NFT drops, or early access to virtual real estate auctions, creating multiple value propositions that justify ongoing subscription costs.

What kinds of services (like consulting, events, or training) are being monetized within metaverse platforms?

Service-based monetization encompasses three primary categories that generate high-margin recurring revenue for metaverse platforms.

Virtual event production services generate end-to-end revenue through conference staging, live moderation, and technical support. Platforms charge $25,000 to $200,000 per event depending on scale and complexity, including setup, real-time technical support, and post-event analytics reporting.

Consulting and strategy services command hourly rates of $200-500 for metaverse strategy development, creative direction guidance, and tokenomics design. These services target enterprises entering virtual worlds and require specialized expertise in virtual engagement, community building, and digital asset economics.

Educational and training modules operate on subscription models ranging from $49-299 monthly for access to immersive curricula. These include safety training simulations for industrial applications, soft skills development for remote teams, and professional certification programs that leverage VR technology for enhanced learning outcomes.

Custom development services for branded experiences generate project-based revenue from $50,000 to $2 million depending on scope and interactivity requirements. These include virtual showroom construction, interactive product demonstrations, and gamified brand experiences that integrate with existing marketing campaigns.

If you need to-the-point data on this market, you can download our latest market pitch deck here

Which monetization models are expected to grow the most in 2026 and beyond, and why?

Four emerging monetization models show the highest growth potential beyond 2025, driven by technological advancement and market maturation.

Tokenized governance models through Decentralized Autonomous Organizations (DAOs) will sell governance tokens that provide voting rights and revenue share distributions. These models appeal to users seeking ownership stakes in platform development and create new revenue streams through token sales and staking mechanisms.

Metaverse-as-a-Service (MaaS) represents the fastest-growing B2B opportunity, offering white-label platform licensing for retail, healthcare, and industrial training environments. Enterprise demand for custom virtual solutions drives recurring revenue growth with multi-year contracts ranging from $100,000 to $5 million annually.

Cross-platform interoperability services will generate protocol fees as virtual assets become portable across multiple metaverse environments. This creates network effect revenue where platforms earn fees for enabling seamless asset transfers and maintaining compatibility standards.

AI-driven personalization services, including premium avatar AI companions and concierge services, will operate on usage-based billing models. These advanced features leverage machine learning to provide personalized experiences, commanding premium rates of $19.99-99.99 monthly for enhanced virtual assistance and social interaction capabilities.

Curious about how money is made in this sector? Explore the most profitable business models in our sleek decks.

How do transaction fees, tokenomics, and internal currencies affect platform profitability?

Transaction fees form the backbone of metaverse platform profitability through multiple fee structures that scale with user activity and economic velocity.

Minting fees apply one-time charges of 0.5-2% of sale price when users create NFTs or tokens on the platform. These fees generate immediate revenue from content creation while encouraging quality submissions that maintain marketplace standards.

Marketplace transaction fees range from 1-5% on all peer-to-peer trades within platform infrastructures. High-volume trading platforms like OpenSea-integrated metaverses can generate millions in daily transaction fees during peak NFT trading periods.

Token economics create additional revenue through burn mechanisms and staking rewards that reduce circulating supply while generating platform yield. Platforms earn returns on staked tokens while users receive governance rights and revenue sharing benefits that encourage long-term platform engagement.

Internal currency systems allow platforms to capture foreign exchange-style spreads when users convert between fiat, cryptocurrency, and platform-specific tokens. These conversion fees typically range from 1-3% per transaction while providing liquidity and price stability for virtual economies.

What are the main challenges or risks that could impact revenue generation in the metaverse space?

Five critical challenges threaten metaverse revenue generation, requiring strategic planning and risk mitigation for sustainable growth.

Regulatory uncertainty poses the most significant threat as evolving securities, tax, and consumer protection laws may restrict token sales or impose costly compliance requirements. Platforms must prepare for potential classification of virtual assets as securities and implement robust KYC/AML procedures to maintain operating licenses.

Market speculation and volatility in NFT and token prices can undermine user confidence and reduce transaction volumes. Sudden price crashes destroy perceived value in virtual assets while regulatory crackdowns on cryptocurrency trading impact platform token valuations and user participation.

Interoperability gaps between competing platforms limit network effects and user adoption. Fragmented virtual worlds prevent seamless asset transfers and reduce the utility value of virtual goods, constraining revenue growth potential across the broader metaverse ecosystem.

Scalability and user experience barriers include hardware costs, network latency, and complex onboarding processes that limit mainstream adoption. These technical hurdles restrict user base growth and reduce revenue per user as friction increases abandonment rates during critical conversion points.

Data privacy and security vulnerabilities in decentralized systems create legal liability and user trust issues. Blockchain-based platforms face unique challenges protecting user identities and transaction data while maintaining decentralization principles that users expect from Web3 environments.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

Sources

1. Metaverse Canvas - Revenue Streams
2. P4PE - Metaverse Marketplace Revenue
3. Latterly - Metaverse Business Model
4. University of Hawaii - Metaverse Research
5. Flexe - Metaverse Advertising Revenue
6. Digital CXO - Metaverse Revenues
7. Globe Newswire - Gaming Market Growth
8. Statista - Metaverse Gaming Outlook
9. Metaverse Canvas - Business Models
10. Wipro - Monetization Models
11. Statista - US Metaverse Advertising
12. Statista - Metaverse Revenue Chart
13. Statista - Global Revenue Forecast
14. Statista - Worldwide Advertising Outlook
15. Creative Strategies - Meta Q1 2025