Do away with marketplace
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Tantrica Banana
The marketplace on Second Life (marketplace.secondlife.com) offers a convenient, fast, and user-friendly shopping experience. However, it has had significant negative impacts on in-world malls, much like the effect that online platforms like Amazon have had on brick-and-mortar stores in real life. Over the years, this shift has led to consequences within the Second Life community, particularly for roleplay regions.
Previously, roleplay areas sustained their costs through in-world malls, renting out booths to merchants. Now, most malls are either empty or filled with affiliate vendors, meaning region owners only receive a share of sales, without the steady income from rented spaces. As a result, many roleplay areas have shut down.
What remains are numerous "Look Pretty" regions—visually appealing places designed as backdrops for virtual selfies, but offering little else in terms of engagement. Interest in funding these regions tends to fade, leading to more closures and a decline in the number of active regions.
Creators I know and who sell on the marketplace report that over 50% of their sales come from this platform, despite the added costs due to markups set by Linden Lab. While the marketplace offers unparalleled convenience, it diminishes in-world interaction, accelerating the disappearance of roleplay regions and leaving behind aesthetically pleasing but inactive spaces. Although the marketplace reflects trends in real life, this may not necessarily be a positive development for Second Life.
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Wendy Nitely
Maybe somebody could consider this from the shopper's point of view. My entertainment in SL isn't time spent in an exercise of futility searching in-world for hours or days for an item that can be found in the MP in minutes. Now... having said that I generally still want to
see
the object inworld, to be certain it's the quality I'm looking for. I use the MP "See item in SL" to do that.I'm thinking as a resident and also as a creator... I have a MP store, 80% of my sales are from the MP store. However I also have an inworld store, and unlike many inworld stores, mine isn't just populated with Caspervend boards, the full products are on display in a realistic setting. I have the in-world store so that residence can see, in world, what they are interested in buying. (and it takes a 2048x2048 parcel to have enough prims to do that). They can buy it at the in-world store or return to the MP and purchase it there.
Each store compliments the other. I doubt even 5% of my in-world sales are a result of walk-in traffic. I suspect around 15-20% are made by MP shoppers that came to see and purchased and purchased while there. These suppositions are based on Caspervend metrics.
By the way, I think it was an incorrect statement that LL purchased Caspervend, as far as I know LL is supporting the Caspervent servers. And that is a great thing for the SL residents.
Cooter Coorara
Wendy Nitely I agree with all of the above except Linden Lab did buy CasperTech two years ago. LL is only interested in generating revenue, as they should be, and buying CasperTech will allow them to profit from inworld sales as well as the MP. My main point in my OP is that LL is making money off their MP regardless of whether the seller is still inworld or not. A sale is a sale. They're being short-sighted, in my opinion, because it hurts the creators currently that make SL what it is. It is corporate profit versus the greater good.
Cooter Coorara
This is an interesting view idea. My first reaction when I saw the title "Do away with marketplace" was yeah ok never gonna happen. But after reading ParkerFinley's reasoning, he makes a lot of sense.
To add to conversation, what would become of the MP and all of the revenue from it that LL receives? It has to be one of their primary revenue sources.
As many of you know, LL recently bought Casper Tech, who sold the most common vendors used by stores everywhere. I use CasperVend to sell houses, although most are bought on the MP by far.
What if the MP changed to allow vendors to have stores and list products but not sell them? Instead of every product having a link to an SL location there would be one TP link to an inworld store. If the store moves, the link moves with it. Purchases would be made there, and LL would take their 10% cut from the vendors.
As we RL retailers know fully well, a trip to a store often results in many impulse purchases. Both the seller and LL would see increased revenue.
The obvious problem goes back to the issue I posted to LL a week or so ago about long gone vendors. Those stores would have to be removed from the MP. To those who bemoan the fact that they still want to purchase that merchandise, I can only point to RL stores that go out of business and the void that creates. It creates an opening for a new business..
This idea has merit and needs to be discussed more and details worked out, but I think ParkerFinley has an interesting proposition. LL needs to consider this new business model. As a decades long manufacturer and retailer in RL, I have some experience here.
As a prefab builder and myself as an example, I know that there are 35,000 homes on the MP. At an average of 20 active homes per builder (large builders might have 50, the little guys have a handful), that would equal 1,750 prefab builders in SL. In reality, there are perhaps 100 at the most who are actually active, have places to showcase their homes, and offer service and support to their customers.
To those who point out that they can't afford to pay tier or rent, well, that is just the cost of doing business. Use your freebie parcel to showcase your product. When that sells, buy a 2048, then a 4096, and so on. If your products don't sell, find a new product that does.
Thank you ParkerFinley for thinking outside of the box. That is what makes a successful entrepreneur.
Tantrica Banana
Cooter Coorara
"what would become of the MP and all of the revenue from it that LL receives? It has to be one of their primary revenue sources."
Yes. But I also bet that this is a short lived gain. Because most regions in SL these days are either residential or really just better backdrops for people taking selfies for Flickr.
That, i do not see sustainable for LL
Dana Enyo
Let me start with: not gonna happen. MP is as essential to SL as Amazon (who all hate to love) now is to RL. It has the same benefits (it's incredibly convenient even though the search is awful), has an absolutely massive selection all in one place, and it's so easy to refer a friend to exactly what you just found by sending them the URL.
MP also has the same destructive impact on inworld shopping as Amazon does to our RL downtowns and malls. Why wander from store to store, sim to sim, when it's all right there in your browser?
BUT the sim owners make this worse by the weekly rents they charge. I MIGHT be able to afford a small shop somewhere, but I really doubt I would sell enough in that shop to cover the cost. They need to make some money, but fixed weekly rent locks out many (I think nearly all) small creators.
And yet I have a Mainstore and 8 small shops inworld. I do that by paying COMMISSION, not fixed rent. If I do well, the sim does well. If there's a music venue, the hosts announce that part of every purchase from the ¡En YO! Shop is given right back to support the venue. The street is more interesting, there's a reason to explore, and you see fewer depressing empty storefronts.
(By the way, this is really different from the Affiliate stores that fill up some spaces. The Sim Owner has a direct relationship with the Seller--it's a team effort and the Seller has a genuine vested interest in the success of the Sim, becoming a part of the community.)
So that's my answer: more Sim Owners should be willing (and even encouraging) commission-based rentals, and Sellers should be offering to rent their shop space that way. Casper and other shop vendors allow for a percentage of each sale to go to someone else, so there is no additional work on the Seller's part. You make sales and not go broke doing it, the Sim Owner gets more traffic and a much better-looking environment, and Shoppers enjoy streets with shops that are OPEN! Seems like a win-win-win to me.
Tantrica Banana
Dana Enyo
"Let me start with: not gonna happen."
i know that!
take this post/suggestion rather as a nudge towards LL that something must happen. Unless we want SL to turn into a "3D" Flickr. Empty regions that are pretty but have no content. Much like most pictures on Flickr: pretty too but boring.
Dana Enyo
Tantrica Banana I agree. But I don't think this is LL's job to fix, I think it's ours. WE build that world the way we want it, and if that means finding new ways to draw shoppers away from our "SL Amazon" and back into the streets, it's up to us to experiment with new ways to do it.
There's a song about SL "We didn’t make the world" (next line "We made it better") that's all about the creative craziness (or crazy creativity) that builds this place. I think this is a good time for some new ideas.
Tantrica Banana
Dana Enyo
the one thing that made me stay in SL when i learned about it was, that it is a world shaped by the residents. In so far i can see your way of thinking.
however, we, the residents, can only shape within a set frame. set conditions. this world is not developing in an open vaccuum but is embedded in given conditions. Which i would like to see adjusted. Because as it stands, no creator has any reason to rent in a mall. A mainstore and a marketplace store suffice.
and that cuts off the financial flow for RP areas.
Cooter Coorara
Dana Enyo "Sim Owners should be willing (and even encouraging) commission-based rentals".
That would be fine if the sim owner's tier was based on income. It is not. Sim owners have fixed tier levels, along with premium memberships to pay for. A full sim costs $166 USD a month in tier (rent). I pay $30 USD a month for Premium Plus (I'm a prefab builder and upload lots) but for the sake of argument let's just say I'm just a Plus member for $6. That's $172 a month plus (for my 7%) sales tax is $184 USD monthly. That's a lot of dough. To "crack the nut" how much $L do I need to generate? $41,700L. If my commission was 50% of sales, revenue would have to be about $84000L. That is just to break even. That's a lot of dresses and necklaces. If my commission was 50% of sales, revenue would have to be about $84000L. That's a poor business model. I'd be better off renting the land for homes rather than taking part of a merchant's art sales.
Somehow, dead vendors need to be removed or at least flagged as inactive in SL since such and such a date. Including the date a product was listed on the MP (or last updated) would help determine what quality a product is. In my view, doing so is the only way new creators in SL can survive.
Dana Enyo
Cooter Coorara That's all true. What I'm looking at are urban sims full of streets with empty storefronts, which means there's no reason for anyone to explore, which means there's no reason for a seller to rent them. I'm just trying for a way to break the vicious circle.
If you've got the option of renting homes instead, great! But an urban space with storefronts on the ground level and apartments above would be a really nice environment.
xaka Chayoo
Just this week I was thinking about this, MP is a cash cow although LL still needs to sell regions too to make money. Malls and clubs and the like, started going south a few years ago when someone started selling a system that purportedly detected alts, bots, copybotters and whatever, the system had a 40% accuracy nonetheless all the little adolfs started installing it, most of the business that did install it went belly up, even alts had to buy shoes, hair and whatever. So, what to do? From the LL side, a message system, like the one that lets you know who changed their name, across the grid with no subscription, that would allow (LL controlled obvious), messages such as, mall "such and such", 30% off for the next 2 hours or today and tomorrow and a SLURL, from the merchants side, a note in Capital letters on the MP page "this product sells with 4 extra colours inworld", and also cheaper inworld and other marketing incentives, real hard to keep up, can't just sit back and wait for the L$ to flow, takes real work, also make navigating a mall easier, I had a system that worked similar to area search (given free) and covered the whole region, was fast, and accurate, limited results to 15 and offered TP direct to the products. Many big name merchants in SL basically sell in store (hair, clothing, etc) using their groups, giving out loads of free stuff and killing it, people prefer to buy at their stores rather than MP. Instead of every mall with a group, unite, make one group for malls, forget your little adolf, press LL to have a diffusion msg system for malls, like the name change msg's. make customers a priority, help and communicate with them, make prices affordable for stores and try and get a big name merchant (make it free) to put a vendor at your place for a week, make it so every week a different big name merchant comes there. Think outside the box.
Arduenn Schwartzman
> However, it has had significant negative impacts on in-world malls
Can I have access to the source database and extensive marketing survey that provided you with this assertion?
Also, even if it was true: it seems that web-based stores then seem to be preferential to customers over in-world malls. This begs the question: why would you want to go against the preference of the consumer?
Tantrica Banana
Arduenn Schwartzman
"Can I have access to the source database and extensive marketing survey?" yes of course. Teleport to any roleplay area inworld. check the malls. no need for "source databases". the amount of empty booths stands for itself.
"why would you want to go against the preference of the consumer?"
because also that individual consumer will at some point stand on a deserted sim/region, when all of SL goes belly up as this is simply not sustainable. Why on earth would a roleplay-region-owner want to fund their place out of their pocket?
Arduenn Schwartzman
Tantrica Banana I'm absolutely not surprised that those malls at the entrance of any RP region suffer economically, but I personally think it's not because 'MP is taking away their customers', but rather from the fact that people who visit RP sims visit these because they want to roleplay, not shop. So, again, show me the data that suggest that these two phenomenon are causally related.
Tantrica Banana
Arduenn Schwartzman
i do not need to "show you evidence". i am not obliged to do so. this is my opinion and instead of trying to be condescent you can just open your eyes and see that most roleplay areas that once were striving are now gone.
and of the remaining ones 90% are dead in the water. You need evidence? go there and look for yourself.
Arduenn Schwartzman
Tantrica Banana Well, I'll wager you one Linden Dollar that Linden Lab is never going to cancel Marketplace over opinion, baseless conjecture or playing the blame game.
Tantrica Banana
Arduenn Schwartzman
I am well aware that the chance of this being considered by LL are slim. However, LL has an advantage that we do not have:
they can actually see the sales, in detail, from the day xstreet became marketplace. They can see that sales shifted from inworld to Marketplace. They can also see that generally the shift from sales inworld to MP went in the biggest part on the expense of "satellite stores". Those satellites were what once the malls in RP areas were.
I, like anyone else, can not back you up with statistics, and you can not back me up with stats supporting your point of view either.
But what you see on every day base is, that roleplay locations are dying. On a large scale. And that has mainly one reason:
When malls were a thing still, the succesful regions had well asorted malls with a broad spectrum of vendors. And traffic to make the creators happy, their rent being a worthwhile investment. So, if i, as roleplayer and customer wanted to have some fun? i went by traffic numbers and then when i arrived by the mall. was traffic good and the mall full, likely the RP area was worth a stay.
You may see that differently and are well within your rights to do so, but you cant back it up with stats yourself and so, the answer to this, at the end of the day, only knows LL.
Arduenn Schwartzman
Tantrica Banana It's probably not something rp sim owners want to hear, and it may be difficult to accept for some, but I would say that the main reason for things dying is not SL Marketplace, but that people get tired of the same old boring shit.
C
Cynite00 Resident
Removing marketplace for individuals would force them to have an inworld store to 'participate' or 'compete', and therefore most taken out of the entire economy.
Many inworld stores don't offer much more than pictures on boxes, to save on Li and such, and do not offer anything over the MP - and at the added cost of time walking around looking at, downloading texture sets for, and all the bandwidth to load the world that perhaps the user does not care about.
Nothing beats the convenience of the MP, as the same model reflected in RL as people want to find what they need and get it ASAP with the least hassle as possible.
Efforts could be focused instead, on providing more affordable lands so more users can try it out, higher Li allowances as the platform optimizes, and encouraging creators to actually have a reason to visit their parcels, other than for shopping.
I do understand your concern and agree with it somewhat, but we can't force people to do things, but perhaps we can lure them with good content.
Tantrica Banana
Cynite00 Resident
I agree that many mainstores are just that: panels with pictures on them. But the point was not to draw traffic into mainstores. I would rather love to see traffic drawn into roleplay regions.
Because as it is now, even a running and buzzling RP area has only very limited options to get some revenue - for covering costs. these are the options:
- donation panels (regularly fail to cover costs and force the owners to send out begging group notes "we have to cover tier, please donate)
- affiliate vendors (very unreliable source of income)
- renting out parts of the region (which takes away from play-space)
Malls, on the other hand, grouped around the arrival spot of the roleplay area, were in succesful places a means to cover the costs reliably, even sometimes allowing for some profit. There were times where malls had waitlists for people wanting to rent there. These times are long gone
Lowering the region prices is not adressing this issue neither. Lets say, all regoins were free. no costs. We assume LL would still manage. What then? Everyone and their dog would open "the best RP area of all" - in their mind. and in fact it is just another boring, faceless place. and to cover up for missing traffic, they arrange bots and dont declare them as such or set up a region game where you have to be around for gaining game-benefits. So, also not really real roleplay-traffic. And since costs would not be a factor, nothing would kill these wastes of space.
Malls in roleplay regions took care of that, as welcome side-effect. THat particular RP region sucked? Mall is empty. Bills will not be covered, Region closes down.
This RP region is a hit? Mall is full, bills covered. everyone is happy.
I have no idea how to replace this instrument of steering/channelling good/bad for regions, that benefits the region owner.