On Becoming Second Life Entrepreneur

In the simulated world of Second Life, in which 9.6 million "residents" or registered users create the world around them, standing out is paramount.

"I have 500 different skins," says Arikinui Adria, a virtual fashion designer who is referring to various looks that can be worn by her "avatar," a character that she and anyone who registers for Second Life can create. "Just like real people change their lipstick to match their outfits, I change my hair style, my hair color and my skins to match mine."

Armed with a graphic-design tool and image-editing software, Adria creates fashions for herself and for sale in her virtual store, Nuclear Boutique, from which she earns between $1,500 and $3,500 each month. Granted, the real life 39-year-old Cocoa, Fla., resident who asked that her real name not be used, says, "I'm not making the millions Ralph Lauren is making." But the fact that a population of avatars admires her design skills is rewarding, she says.

In Second Life, "you can do anything you want, create anything you want and be whoever you want to be," says Daniel Terdiman, author of "The Entrepreneur's Guide to Second Life," which is due out in November. Since the fantasy word's inception in 2003 people have gotten married, taken classes, thrown parties, watched movies, gone shopping, built homes — and now, they're testing their entrepreneurial mettle. What makes Second Life so unusual compared to many other interactive 3D games (such as those played on Microsoft's Xbox) is that the virtual society uses a currency and thus an economy has begun to take shape.

Second Life poses a big opportunity for entrepreneurs, says Terdiman. "It is a virtual world in which personal expression is important," he says. Since there is no limit to what people can create, he estimates that "several hundred thousand consumers" will likely want to spend money on the latest designs for anything from vehicles that fly to enhanced body parts.

Entering the "metaverse" — a term used to describe immersive 3D virtual spaces such as Second Life — may not make much business sense for every would-be digital entrepreneur as it takes the same amount of hard work and stamina as owning a real-world business. But for those with an eye for design and technological acumen to boot, taking a second look at virtual worlds might, in fact, be worth the effort.

A Primer on Second Life

In 2006, according to demographers from Linden Lab, the San Francisco-based creator of Second Life, more than $93 million worth of transactions took place in Second Life. Additionally, in the last 12 months 2,082 entrepreneurs selling anything from cars and fashion accessories to parcels of their own private island made $20,000 or more. And just last month, 1,615 resident-business owners earned $1,000 to $2,000 and another 1,058 earned between $2,000 and $5,000.

Getting a Second Life is free. However, a computer, Second Life software, and a high-speed Internet connection are generally necessary for optimal use. A premium membership in which users can buy land and receive a weekly stipend is also available for $9.95 a month. The currency, known as "Linden" dollars, may be purchased using a credit card and earned during the game. Lindens can then be converted into real dollars via online currency exchanges.

Virtual worlds including Second Life and "World of Warcraft," an online role-playing game, are receiving massive inflows of money. According to a recent report about technology trends in small businesses from Intuit, it's estimated that more than $200 million real-world dollars are funneled through virtual worlds each month.

And entrepreneurs like Elizabeth Foshion, are capitalizing on the trend. Four years ago, Foshion, or "Surreal Farber" as she's known in Second Life, and her business partner entered the virtual community as content creators. "We started making stuff for ourselves and people liked it," she says. From there, the two invested in their own island, which today might cost $1,675, plus a $295 monthly maintenance fee.
More at:http://secondlife.com/
Via-Uncommon Business Blog