Have you gotten a second life? If not, you should seriously consider it.

Second Life, an Internet-based virtual world that came to international attention via mainstream news media in late 2006 and early 2007, is more than just a fad.

Developed by Linden Lab, Second Life is a downloadable client program that enables its users, called "Residents," to interact with one another through motional avatars, which are digital representations of how they'd like to look. Residents can even customize their virtual worlds using open-source code.

Second Life provides an advanced social-network service combined with general aspects of a metaverse, or a fully immersive 3D virtual space. Residents can explore, meet other Residents, socialize, participate in individual and group activities, and create and trade items—such as virtual property and services—among one another.

While Second Life is sometimes referred to as a game, this description is disputed. It does not have points, scores, winners or losers, levels, an end strategy or most of the other characteristics of games, though it can be thought of as a game on a more basic level. Like the virtual-life game The Sims, there are no stated objectives. Basically, it is a semi-structured virtual environment in which characters undertake activities for the purpose of enjoyment.

In all, more than 9 million accounts have been registered—some Residents have multiple accounts—although many are inactive. No reliable figures for actual long-term consistent usage exist.

Exchange rate
Second Life even has its own economy and a currency referred to as Linden dollars (L$). In general, every Resident gets a weekly stipend of a few hundred Linden dollars. Members can exchange their Linden money online for real-world currency. Though the exchange rate fluctuates, it is reasonably stable at around L$270 to US$1. While these exchanges are made in open markets, Linden Lab will sometimes "sink" or sell Linden dollars to try to keep the exchange rate relatively stable.

Residents can also earn their own money by working for other members or starting their own business. They can create new goods and offer services, and sell them to virtual-life customers. A small percentage of Residents derives real-world net incomes, ranging from a few hundred to several thousand U.S. dollars per month, while a larger percentage derives a gross income large enough to offset most of its expenditures in Linden dollars. There has been concern in economic circles about possible taxation on the currency, with the Joint Economic Committee of Congress studying whether Residents should have to pay real-world U.S. dollars on their Linden dollars profit.

Second Life users spend an average of L$50 to L$100 a week. They buy property (an island costs US$1,675 for about 16 virtual acres, plus US$295 a month for maintenance fees) and other merchandise, playing games for money and doing whatever any programmer can dream up.

Business uses
Major businesses have grasped Second Life's concepts and learned how to use the virtual world to their advantage. They also might make some sales, mostly by linking Second Life visitors to their real-world Web sites.

Most participating companies use the online world—a relatively inexpensive marketing avenue—to advertise, test products and market ideas. Major manufacturers use Second Life to test their products on virtual customers. Just a few big companies have tried to bring in any revenue directly from Second Life, however. Clothing designers and automakers sell virtual pairs of jeans and virtual cars for US$1 or $2 each.

People on Second Life are also influencers. If visitors are tech-savvy enough to be in Second Life, odds are they are blogging and podcasting like crazy, so they could help businesses market products or services via word-of-mouth marketing.

Additionally, the virtual world is getting more real all the time. One company has even developed a formula to measure how often someone views ads in Second Life and will market a person's or company's product for a fixed rate per 1,000 impressions, just like in the real world. Companies even find that using Second Life for a meeting can, at times, be easier than setting up a normal videoconference.

With the opportunity provided through Second Life, companies can go from just thinking about products to making them a reality. T

Living the life Is your company interested in doing business on Second Life? Here are a few tactics you can try. > Create your avatar. An avatar is an Internet user's persona or alter ego in the virtual world. Begin your virtual corporate-world experience by creating an avatar that perfectly fits the customer profile for your brand. > Buy land. Avatars don't need to own land, but for a monthly tier fee you can build an office or store on an island or in the heart of a city. Be aware of your virtual surroundings. At any time, the empty lot next to yours could become an ivory tower one day and an ugly box the next. > Shop around for a developer. In Linden Lab's Solution Provider Directory, you can find the right company to build your virtual office. Other companies can hire celebrities to perform at your launch event and generate buzz by inviting the media and customers or prospects. > Define a brand experience. Translate real-world products into virtual ones or invent new products and gadgets to try out on Second Life customers. Some companies even sell their goods for U.S. dollars. > Understand the local culture. Take this as seriously as taking your company to a new country or continent. Consider what styles and types of products would appeal to customers in Second Life. > Define your virtual strategy. Launch your presence with a high-profile event, and consider cross-promoting with other companies. Also, consider using incentives. > Measure real-world results at regular intervals. Think of using Second Life as a complement to a standard Web site or real-world presence. Check out the number of virtual customers who visited your store or the number of gadgets sold in a day. > Keep an eye on other Web worlds. While Second Life is getting popular, it could be even more innovative to explore alternative marketing platforms. Active Worlds, for example, offers stand-alone immersive corporate worlds. Other Web worlds include There, Habbo and Cyworld, a growing Korean site that marries elements of MySpace and Second Life. Each of these is similar to The Sims and offers business-oriented and entertainment features. —L.C.

Lisa Campbell is a freelance marketing and technology writer in New York.

Teradata Magazine-December 2007