Despite their growing relevance, virtual influencers (VIs) have received limited research attention regarding their design, development, and use. This grounded theory study presents a paradigm for establishing and managing VIs based on eight semi-structured interviews with VI developers. It examines the design process, from elements (user-related and brand-related factors) to strategies (emphasizing aesthetic appeal, cultural codes, and background stories), which ultimately lead to business outcomes such as engagement, brand collaborations, and follower retention. Drawing on self-congruency and anthropomorphism theories, the study demonstrates that human-like behaviors in VIs-such as natural speaking and reacting-enhance trustworthiness, expertise, and appeal. Furthermore, it extends the anthropomorphism framework beyond the three-factor theory to incorporate cultural norms and desires. The findings provide a blueprint for marketers and developers aiming to introduce VIs and achieve these business outcomes. The analysis concludes that VIs with strong visual appeal and well-crafted narratives significantly boost audience engagement and brand collaborations.