Second Life Product Market Value

Perm url with updates: http://xahlee.org/sl/sl_market.html

Second Life Product Market Values

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Xah Lee, 2010-04-24

Look at this item: xstreetsl modern house. (be sure to check out all the screenshots)

It sells for about $100 USD, and people are buying it. I estimate that it takes about single person 3 weeks to make. If you compare it to software, the ratio of market value over effort is way higher. For example, if you are a game programer, you can code for 3 months, and resulting a product that you can sell maybe $20. And, to be a game programer actually takes a whole lot more training and knowledge than building and scripting in Second Life. Perhaps 5 times as much skill and expertise.

My Particle Maker sells for ~$14 USD, and i sell close to 2 per week since i made it in 2009-04. It took me about 3 weeks full time to create. I have not even spend time on marketing for the past 7 months.

I think the reason for this is because Second Life is a new market. For example, computer games market have been around for 20 or 30 years, Second Life only few years and not yet main stream.


2010-01-03
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A bit of rare juicy info on sl business. Here's a quote from Wikipedia Second life:

According to figures published by Linden Lab, about 64,000 users made a profit in Second Life in February 2009, of whom 38524 made less than US$10, while 233 made more than US$5000 [21]. Profits are derived from selling virtual goods, renting land, and a broad range of services. In March 2009, it has become known that there exist a few Second Life entrepreneurs, whose profits exceed 1 million US$ per year[22].

Some companies generate US dollar earnings from services provided in Second Life. Examples are Languagelife.com,[23] Rivers Run Red[24], BNT Holdings, and Beta Technologies.[25] This opportunity is extending to normal residents and non-Second Life users via affiliate programs.[26] The total value of these transactions has not been calculated but in 2008 consultancy firms Rivers Run Red and Electric Sheep have reported annual revenues of $6 million.

The reference 21 about who made what amount, is from sl official site: http://secondlife.com/statistics/economy-data.php. That page is raw data, you'll need to do some computation to get a readible summary.

The reference about those making millions, is from a blog: Top Second Life Entrepeneur Cashing Out US$1.7 Million Yearly; Furnishings, Events Management Among Top Earners (2009-03-24) by Wagner James Au. At Source

The source of this millions claim is from Robin Harper's blog, at http://couldtherebewhales.blogspot.com/2009/03/correction.html. Apparantly, Robin was a VP of Marketing and Community Developmen at Linden Labs, and left in 2009-02.

Robin being a VP is readily verified on web. Here's a article: http://www.massively.com/2009/02/02/robin-harper-to-leave-linden-lab/, and here: http://nwn.blogs.com/nwn/2009/02/robin-linden-leaves.html. Here's Robin's linkedin url: http://www.linkedin.com/in/rharper.

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