Second Life – Can the virtual universe provide real business benefits?

Second Life has been grabbing an awful lot of column inches in the last 6 months across the world’s media.  For those not in the know, it’s an online virtual world that has already built up over 6 million users and attracted interest from some of the world’s biggest brands.

So what exactly is it all about?  Well, the internet based social network is made up of users that form a virtual world of ‘Residents’.  These Residents can explore, socialise and participate in activities.  Users can also interact with brands, buy their virtual selves drinks, new clothes and even real estate.  Second Life has its own virtual currency – ‘Linden Dollars’ that can be exchanged for real currency in the market place. 

It all sounds a bit geeky doesn’t it?  You can almost picture the game addicts sitting in their bedrooms in front of their computer screens.

Earn real money

But this image could not be further from the truth. Some individuals are creating a living out of the clothing, products and services they sell in Second Life and then change their Linden Dollars back in to hard cash. Furthermore some of the biggest brands out there are active on Second Life – the likes of Sony, Reuters and Dell all have virtual presences on the internet game.  So what are they getting out of it? 

As far as we can see, whilst Second Life is not a real viable revenue driver at the moment, we can visualise how valuable a presence in this virtual world could potentially be. As we’ve mentioned, the revolution of social networking has changed the way we look at the online world and Second Life in many ways seems like a natural progression. Whatever happens, there’s no doubt that it’s the companies most adaptable to change and willing to take a few risks that will most likely prosper in this virtual world.

Real World brand and PR benefits

So what does this mean for you and your business?  We’re not expecting everyone to rush out and buy land in Second Life, because it’s not a short term marketing solution for anybody to boost sales.   However, all of the companies actively involved with Second Life are not only advertising themselves to the network of over 6 million Residents, but also re-affirming their brand position and backing it up with a PR campaign in the real world.  It’s not everyday you can report that your company bought an island!

Whatever your product or service, maybe you should be thinking how could this be sold and marketed in the virtual world?  Imagine the brand awareness and PR you could generate in the real world from being the best selling T-Shirt supplier in Second Life, or the most popular chain of coffee bars across the virtual world.

Big business embracing virtual worlds

Dell has got it spot on in converting the virtual world into visible currency.  Visitors to ‘Dell Island’ can custom build their own PC before following a secure link to complete the purchase online.  Whilst the British branding firm Rivers Run Red, is working with real-world fashion firms and media companies inside Second Life, where they're creating designs that can be viewed in all their 3D glory by colleagues anywhere in the world.

A consortium of corporate training folks from Wal-Mart Stores, American Express, Intel, and more than 200 other companies are experimenting inside Second Life with ways for companies to foster more collaborative learning methods.

But the real heavyweight company on Second Life is IBM who has invested serious time and money into Second Life.  It’s thought that over 260 employees are actively involved.  Not only are IBM using their presence to support the brand, they’re also using their premises on Second World to let worldwide employees meet up and share research and development ideas.

So it seems a lot of other real-world businesses are paying attention.  They are looking from a different angle at how virtual worlds could transform the way they operate by providing a new template for getting work done, from training and collaboration to product design and marketing.

Try it yourself

If you’re keen to take a closer look, Second Life is free to join under a basic account.  However, if you want to start dabbling with your own land, you’ll need to start shedding some pennies.  Have fun!