Due to its unique range of creative, experimental and commercial possibilities, the online persistent virtual world Second Life is attracting significant interest from business and service industry sectors throughout the world. Big name brands such as IBM, Dell, ING, Philips Electronics, Telstra, and the Australian Broadcasting Corporation have entered this immersive environment.

Though return-on-investment is not readily measured, canny early adopters are realising the potential in understanding how virtual worlds work, particularly in regard to social networks and peer-to-peer exchange. For this reason, active engagement with residents, one which goes beyond merely establishing a shop front, is advocated.

Second Life is emerging as test bed for new ideas, where real world prototypes can be released at low cost, with direct feedback from users significantly enriching the design process and leading to innovative or unexpected results. The process is enhanced by the nature of its residents who, typically, are techno-savvy, playful and demonstrate a high receptivity to new ideas.

While virtual businesses can be profitable, few are significantly so, as they deal in Linden currency which amounts to mere micro-payments (L$275 = approx US$1). However in-world service providers deserve close attention as their methods shed light on ways in which social networks and peer-to-peer exchange drives trade. This points the way ahead for real world businesses seeking to monetise services in today’s ‘pull-driven’ consumer environment.

Virtual-to-virtual business methods may well lead the thinking in devising business models for future 3D web-based services, particularly as add-ons to the ‘mirror worlds’ of Google Earth and Microsoft’s Virtual Earth emerge.

Download Business in Second Life: An Introduction

PDF format, 274KB, 28Pages.

Version: General Distribution
Date of Publication: May 2007
Author: Mandy Salomon, Senior Researcher, Faculty of Life and Social Sciences,
Swinburne University of Technology

© Smart Internet Technology CRC Pty Ltd 2007.
Established and supported under the Australian Government’s Cooperative Research Centres Programme

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Author Biography

Mandy Salomon

Senior Researcher in the User Environments program of the Smart Internet Cooperative Research Centre.

Mandy is an established media practitioner, having worked as a journalist and commentator in radio, television, newspapers, theatre and documentary film. She has consulted widely with business, via the production company Red House Media. She holds a BA (majors in Drama and Visual Arts) and a Masters degree in Media and Communications. Based at Swinburne University, Mandy researches the social impact of new interfaces, innovative web practices, and user-led innovation.

She joined the Smart Internet Cooperative Research Centre in 2006. Her current projects are in the area of emerging immersive environments, and in particular, Second Life. In-world she is Caliope Voss.

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