Second Life Adds Business Model: Land Sales, Currency Exchange, Now Micro Transactions Virtual Goods – Linden Lab Aquisition of Xstreet SL and OnRez
What is better then one business model in a virtual world? Why three of course. Linden Lab started off Second Life mainly profiting from the sale of virtual land.
They quickly expanded to a Currency Exchange with the Lindex. Now Linden Lab is expanding into the virtual goods micro transaction business.
In an interesting move Linden Lab the creators of Second Life have purchased OnRez and Xstreet SL. This may be a move to boost profits with virtual good sales continuing to increase. These are two of the largest Second Life virtual goods web sites and I have used XStreet SL (previously known as SL Exchange) before. These sites take only a five percent commission on items sold by programmers and designers.
It looks like the Xstreet SL platform will be integrated directly into Second Life (prompting you to buy during search and other inworld activities?). OnRez will close on February 11, 2009 and everyone will be transitioned to Xstreet SL. The Xstreet dollar exchange (which I prefer to use) will continue to run for now although I expect eventual replacement with the LindeX. I love the way Xstreet Linden Dollar exchange immediately pays out to paypal so hopefully the LindeX can learn something from them. The LindeX can cause a delay in receiving your funds at times. Xstreet accounts and Second Life accounts will be merged.
Merchants in Xstreet SL are initially reacting negatively questioning what this will mean for the adult items and other questionable products sold (such as those possibly infringing on patents or copyrights) as well as concerns about slower support turnaround. Read some of the comments.
what is the “second life” anyway
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