Why you should second-guess Second Life

There is a lot of buzz about Second Life in the social media marketing circle. What is Second Life? Depends who you ask, but we see companies perceiving it as a virtual mall serving the computer-savvy.

SF-based creators Linden Research, Inc (or Linden Labs) debuted the metaverse four years ago, but it is only really in the past year that it has gone mainstream. Or as mainstream as a non-game universe can be. The site proclaims 8,536,403 users, or "residents" as of this posting.

Linden Labs funds the business via several channels:

• While free to get started, they charge residents $10/mo for the ability to own land where the resident can live and entertain, as well as chat support. A resident can also open additional accounts for the same amount.
• Sell companies/individuals land to build virtual stores, conferences, whatever. In June 2007 an estimated 50 companies had a presence in the world.
• A virtual economy. You can buy/acquire Linden dollars to buy things (content) at a rate of 258 Lindens to $1.

But the problem is that the places where companies are advertising are empty. Residents are socializing around land developed by other residents.

During a recent in-world visit, Best Buy Co.'s Geek Squad Island was devoid of visitors and the virtual staff that was supposed to be online. The schedule of events on Sun Microsystems Inc.'s site was blank, and the green landscape of Dell Island was deserted. Signs posted on the window of the empty American Apparel store said it had closed up shop.

Worse, active avatars are down by about 2.5% between May and June 2007, as well as US money exchanged. So if you aren't getting too much brand awareness, why spend the time and resources on keeping your second shop on Second Life??

The problem we see is that people are taking the same approach with Second Life as they did the web as a whole -- build it and they will come. Build this amazing website, and you will see people come in droves! But questions, basic questions about any marketing endeavor, are often forgotten.

• Who will come? When will they come?<
• What will they be seeking? Why are they visiting?
• How will we service them better?

So, we can't give you a reason to set up your corporate presence in Second Life or any of the others. But if you do, some advice:

• Look at the users more closely -- they are cutting edge and early adopters. Early adopters are great for getting feedback on new product and services, and often start viral campaigns.
• Understand the users better -- they are seeking risque activities such as casinos, brothels, and strip clubs (which confirms Avenue Q's belief that the Internet is for porn). Like companies should be here.
• Serve your users better -- your customers can see through your blatant advertising. Instead of stating why you are so great and tech-advance, you should be starting a dialogue with them. Don't sell. Talk.