Doing Business In Second Life

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Doing Business in Second Life

— or—

Second Life? What About My First Life!

Jason [email protected]

(434)409-8451


Automating the Science To Enable the ArtAutomating the Science To Enable the Art


What Is Second Life?

Virtual World

• 3 dimensional representation of Internet-based human-to-human interaction

Computer-based representation of physical realities

• Not meant to replace true physics engines, but…

• Can replicate interactions with real world objects


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Who’s In Second Life?

4


Population of Second Life Residents

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep-0

5

Nov-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep-0

6

Nov-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-0

7

Nov-07

Jan-

08


Who’s In Second Life?

5


Visits to Second Life

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep-0

5

Nov-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep-0

6

Nov-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-0

7

Nov-07

Jan-

08



Is There Critical Mass In Second Life?

ParisPopulation Density: 9,560/mi2

Richmond, VAPopulation Density: 537/mi2

Second LifePopulation Density: 482/mi2

6



Who Will You Meet In Second Life?

“Normal” People

7




“Altered” People

8




Furries

9




Words Don’t Describe It

10




Newt Gingrich

11


Why Is Second Life Important?


Individual

Connected

Inside

Lev

el o

f In

tera

ctio

n

Time Source: Peter Finn, IBM


The Economy of Second LifeCurrency is Lindens—bought from Linden Labs

Held in a wallet—can set limits to what you spend

ATMS removed earlier in 2008


US$ Exchanged

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Jan-07 Feb-07

Mar-07

Apr-07 May-07

Jun-07 Jul-07 Aug-07

Sep-07

Oct-07 Nov-07 Dec-07

Jan-08


The Economy of Second LifePeople shop often in Second Life…


Shopping Habits in Second Life

18%

13%

27%

13% 13%

9%6%

0%

5%

10%

15%

20%

25%

30%

Severaltimes a day

Once a day Severaltimes aweek

Once aweek

2-3 times amonth

Less often Never


The Economy of Second LifeBut they don’t spend much…


Resident Monthly Spending Habits

146,269

60,822

46,863

32,589

54,790

11,8678,066

678 415

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1 - 500 L$ 501 - 2,000 L$ 2,001 - 5,000 L$ 5,001 - 10,000 L$ 10,001 - 50,000 L$ 50,001 - 100,000

L$

100,001 - 500,000

L$

500,001 -

1,000,000 L$

> 1,000,000 L$

*$1 = ~270L$


The Economy of Second Life…which means few businesses make significant profits


-

10,000

20,000

30,000

40,000

50,000

60,000

Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 J an-08

Businesses With USD Equivalent Positive Monthly Linden Flow as of March 1, 2008

> $5,000 USD

$2,000 - $5,000 USD

$1,000 - $2,000 USD

$500 - $1,000 USD

$200 - $500 USD

$100 - $200 USD

$50 - $100 USD

$10 - $50 USD

< $10 USD

*$1 = ~270L$


What ARE the Business Opportunities in Second Life?3-D Modeling


Stanford University Graduate Student’s Hypercube Model


What ARE the Business Opportunities in Second Life?Telemetric Printing


Jeans designed in Second Life Jeans printed and worn in real world


What ARE the Business Opportunities in Second Life?Architecture and Real Estate


$3.1 Million Home Offered By Coldwell Banker


What ARE the Business Opportunities in Second Life?Brand testing and awareness


Coke Machine in Second Life


What ARE the Business Opportunities in Second Life?Product rollouts


Bathroom of a Starwood aloft Hotel in Second Life


What ARE the Business Opportunities in Second Life?Meetings and Conference Space


IBM Meeting Held in Real Life and Second Life


What ARE the Business Opportunities in Second Life? Education


Harvard Law School Class Attended From Second Life


What Will It Take to Get Started?

Capital

Time

Commitment

Personnel


“Do not expect to undertake profitable commercial activities inside most virtual worlds in the next three years.”

Steve Prentice, VP, Gartner


What To Do Once Inside Second Life?

Tie your Second Life experience to a real world experience

Keep your events to a manageable crowd

Take a leadership role

Spend time in Second Life before spending money


“The new market is DIALOGUE, the new currency is INTERACTION and the exchange rate is variable, based on

ENGAGEMENT.” Grace McDunnough


Challenges in Second Life

Few companies are profitable

Expect the unexpected

It takes time to get used to the Second Life construct

The technology is still young


“Virtual objects aren’t really objects - they are graphical metaphors for packaging up behaviors that people are already

engaging in.” Susan Wu, Principal, Charles River Ventures


Alternatives to Second Life


Source: Peter Finn, IBM


Conclusions

The move to virtual worlds is almost inevitable

Don’t expect to get immediate ROI

Define what you want to get out before you go in

Look for the long term and learn the lessons now

The “killer app” has yet to be developed; 80% of the lessons you learn now will apply when it is


“The REAL power is in human beings inhabiting worlds where they are not who they are, and who they are is not who they become, and what they do may -- just may be -- who they really are. Within those nuances of play and

passion and aggression is where we connect.” Jeneane Sessum


Doing Business in Second Life

— or—

Second Life? What About My First Life!

Part II: The Second Life Tour WithAC Capehart andBetsy McMullin

Jason [email protected]

(434)409-8451

Doing Business In Second Life

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