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Wholesalers of the world unite and take over

I'm mightily impressed with the support I received from Linden Lab this week regarding some microparcels with banlines next to my mall. They were owned by the notorious Governor Linden, so after a nod and a wink I found myself in possession of said parcels for an absolute bargain price. I won't name names, but thank you!

There's an interesting article by Mitch Wagner over at Information Week about where Second Life might be heading.

All the usual issues are raised, performance, concurrency, questionable figures, nobody quite knowing what the platform is for. It's an interesting read, which is generally what I expect from a Mitch Wagner article. However it still leaves an empty feeling of a platform that is a jack of all trades and master of none.

There are some issues that just won't go away and one of them is simply group limits. Whatever has to be done to sort out group limits needs to be prioritised. I pay for extra groups, I use Hippo for that purpose. If Hippo can come up with a solution then Linden Lab should be able to come up with a solution. I mean no disrespect to Hippo there, they're innovative, subscribe-o-matic has been here for quite some time too and shouldn't be forgotten.

Whether Linden Lab completely revamp the group system, introduce paid extra groups, have message only groups, provide more roles, they simply need to improve this feature, it's a key tool.

Then there are issues such as broadcasting, broadcasting should be massive in Second Life and yet we're tied so closely to quicktime but Linden Lab should be actively engaging the news corps because if there's one thing this platform is good at it's discussions. There are lots of discussions going on, from the banal to the fascinating. Bring on the meaty debates and issues.

Yet everything isn't in the hands of Linden Lab, the users have responsibility too and two areas that need embracing are employment and distribution.

Forget the direct slurl, that's not really going to grab a noob, however an employment opportunity will. Where are the jobs? Outside of dancing, jobs are few and far between and yet despite the android like expectations, people can't stay awake 24/7, especially not us thirtysomethings. We need to develop a more professional approach to business practices and let go of the strict reigns we hold around the necks of our business. We need to trust other people to carry out tasks and empower them to look after themselves without having to resort to camping and money trees.

Creators need to create, innovators need to innovate, strippers need to strip....hmm how did that one sneak in there? Where was I? Oh yes distribution. I've been observing a wholesale business this weekend, and the results are rather impressive. Wholesale in Second Life is often seen as a dirty word. There's a snobbish attitude amongst some that only creators should sell but distribution channels can reward a creator and empower others.

One designer in particular has caught my eye with a limited edition model of full perms clothing. They're sold for over L$3,000 per individual item, with only five ever being sold. I must have seen at least six of these items sold over the last couple of days, that's a sales figure of over L$90,000. Not bad for a couple of days. Then others go away to try and recoup their fees and make more money in a trickle down effect. Some of them will want to rent land from me landlords, and we might go and buy buildings from someone else and this creates a cash flow throughout the economy.

Why are people so reluctant to engage in the wholesale distribution model? Why are people hanging onto control of their products when RL has examples of business models galore that rely on distribution, creators of the world you're good at creating, let the marketeers move in and help with marketing. There are creators out there who never really see the light of day because they don't want to grasp the concepts of marketing and yet, with a little help, they could be smiling and enjoying a very happy Second Life.

Second Life is a big space, in some ways too big and in space nobody hears you scream, but with some subtle shifting and a slight change of culture we can see concurrency regularly go above 70K with engaged users rather than a lot of people popping their heads in and thinking "WTF".

That kind of business model

That kind of business model will only really work in SL when if/when we get to set 'second-user permissions'. I mean that the creator of an object should be able to set two sets of perm's - one, as now, should apply to the next owner (these could be set to copy/trans to allow resell) but there should be another set of perm's set for all subsequent users, those could be set to copy/no-trans for clothing for example.

I know it sounds like another layer of difficulty for SL but it would allow creators to distribute their animations, scripts, sculpts and clothing knowing that they would be much less likely to get ripped off and dumped into a BIAB. It would therefore make original content more viable stimulating that area and would, over time, raise the quality of work across SL - because we'd all be able to get the best content to include in our builds.

It might sound an unlikely new feature too, but Linden already asked about this as part of their user survey some time ago and it might just happen...altho' maybe they'll limit it (with some other similar business-friendly features) to Premium accounts only.

Interesting

This would give the creator more feeling of control over how their objects are going to be used in the future, I would imagine it would be complicated but it would help enforce how a creator wants their item to be distributed.

One acronym

BIAB.

If you sell something full perm, even with the best of intention, its going to end up in a BIAB getting sold for peanuts everywhere. That business model may work for some, but not when you get to something more complex, for example scripted objects. Would you want to spend time and effort supporting something you may never have received any money from?

There are two alternatives though. First bulk sales where people buy multiple no-copy/transfer copies of your items at a discount and sell them on. If course you have problems there when something is not delivered or fails to rez and no one wants to shell out for a bunch of items they may not sell (thats a general sweeping statement I know, there are probably people out there making a profit doing just that).

The most popular solution are affiliate vendors, in fact if you visit my store almost every single vendor in there is an affiliate vendor. Theres no upfront fee for each item being sold (though some people charge for the vendors) and the seller gets a percentage of any sale they make (I pay 15% for my firing ranges). That way the seller isn't out of pocket if they don't make any sales and the creator isn't risking their items becoming BIAB fodder any more than they are by selling them anyway.

Horses for courses

Agreed Talwyn that BIAB is an issue if you do this sort of thing full time, but limited item wise it works. The creator gets their expected returns early on.

More complicated objects it is an issue because providing support for scripted items requires an extra degree of skill.

Affiliate vendors are a low risk solution but generally they have a main store and given the choice between vendors and a main store, people will head for the main store, some people have vendor phobia but that does seem the safest solution if a creator wants to create a general distribution channel.

While I agree that a

While I agree that a percentage of customers will head to a main store (if one exists) that depends on the buyer (1) knowing that the item/brand exists in the first place and (2) being able to find the store. The very existence of stores like mine shows that people are willing to buy somewhere other than a brands main store.

Stores like mine allow people to discover brands that they may not know exist otherwise, they can ask for independent assistance, they can compare products from multiple brands without having to teleport all over the grid and they don't have to search out new brands as I've already done that for them.

As for the vendor-phobic (I assume you mean multi-vendors like hippovend, and not single prim scripted vendors), well, theres not much you can do about them.

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