Tag Archives: Second Life

Second Life Founder’s New Start-up Mixes Virtual and Real Worlds

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Second Life founder and former CEO Philip Rosedale is bringing the virtual world into the real. The entrepreneur has launched Coffee & Power, a marketplace that lets users sell services and small tasks to each other. READ MORE »

TechCrunch’s Disrupt Battlefield: Entertain Us

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From Monday to Wednesday in San Francisco, TechCrunch’s latest Disrupt Start-up Battlefield competition will showcase entrepreneurs from 30 start-ups vying for a $50,000 prize by making six-minute-long pitches to a rotating panel of venture capitalists, tech influencers, angel investors and Silicon Valley players. Monday featured three sessions of Start-up Battlefield, titled Disrupting Traditional Markets, Moving the Web Forward and Entertain Us; here are the start-ups presented in session three: Entertain Us. READ MORE »

Google+ Bans Pseudonyms

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“By providing your common name, you will be assisting all people you know–friends, family members, classmates, co-workers, and other acquaintances–in finding and creating a connection with the the right person online.” This is how Katie Watson, a Google representative, explained the company’s decision to disallow Google+ users from registering accounts under anything other than their real names, though they’re welcome to add “other names.” So, for instance, the hacker Geohot would have to register under his real name George Holtz, though he’d be welcome to add his better-known handle as an extra. READ MORE »

Virtual Conferences: The Next Best Thing to Being There?

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A few weeks ago, 8,000 people attended a scrapbook-making convention. They exchanged tips, attended educational sessions and made new friends. They visited exhibit booths, met and chatted with exhibitors, and watched product demonstrations. It was a highly successful event, even though no one was actually there. Webcasts, webinars, and online meetings have become commonplace in the last few years. More recently, a new breed of events, designed to resemble real-world conferences and trade shows are bringing together chat, virtual reality, 3D graphics, and live video intended to give attendees sitting at their computers the feeling of really being there. Both show presenters and the public at large have been enthusiastically receptive. “In 2006, our first year offering virtual trade shows and conferences, we did about 30 of these events,” notes Malcolm Lotzof, CEO of InXpo, a virtual event provider. “In 2007, we did about 120. We’ll probably do about three times that in 2008.” A typical InXpo event includes a virtual trade show, where attendees can wander around a 3D area, visit exhibit booths, watch demos, and chat with vendors; an auditorium, where traditional webcasts are offered, and audience members can also chat among themselves; and a lounge, where attendees can meet for informal conversation, much like a traditional chat room. Though chat in the lounge is text-only for the moment, depending on users’ bandwidth limitations, exhibit booths can have voice chat and even video chat, he says. Why the huge interest in virtual conferences? Two real-world developments have combined to make them appealing, Lotzof says. On one hand, with broadening broadband and speedier Internet connections, video and 3D graphics are easier to use than ever before. On the other hand, actual travel has become more complex, costly and uncomfortable. “Those two things together are making virtual meetings take off,” he says. Is virtual better than the real thing No one is suggesting that virtual conferences can or should take the place of actual ones. But they do present some unmistakable advantages over in-person events. For one thing, they’re much cheaper. “You don’t have to pay for drayage, hotels, food or brochures,” notes Debbie McGrath, chief instigator and CEO at HR.com, a social network for human resource professionals. Because events are so much more affordable, it’s easy to have many of them, geared toward specific segments of a target market. HR.com first tried out the virtual meeting concept in late 2007 with its event The View, using InXpo, which drew 2,800 HR professionals. In 2008, McGrath says, the group plans to have lots more events — 42 of them — focusing on such sub-topics as benefits, hiring, and training. Affordability also means more people can come to virtual events, Lotzof notes. “A company will usually only send one or two people to a conference,” he says. “But if there are 50 people in the company who could benefit, all 50 can attend a virtual event.” No avatars need apply There are some companies using Second Life and other virtual reality environments for meetings and other events, but Lotzof believes the use of avatars for virtual meetings is counterproductive. “Second Life, as demonstrated by its name, is a place where people can assume another identity and travel around doing whatever they want. The whole purpose of a conference or trade show is to have real people meet each other,” he says. For this reason, InXpo meetings usually give attendees the choice of being represented by a simple, featureless avatar, or a photograph, which is what 90 percent of them select. (Though not always of themselves: McGrath reports that a woman named Betty attended The View using a photo of Ugly Betty from the ABC series.) Live video is another option that will become more common as more people start using webcams, Lotzof adds. Getting the most out of not being there How do you get the most out of a virtual event? Here are some tips if you’re thinking about creating a conference: 1. Let attendees help create content. “In a traditional event, the show’s producers would be very stringent about who presents the content,” McGrath says. “You wouldn’t have vendors bashing other vendors in a group chat, or sessions that were just giant discussions moderated by an expert presenter. But online, that’s acceptable.” 2. Use the opportunity to learn about your audience. During The View, HR.com was able to gather detailed information about attendees, not only their demographics and company affiliation, but also which sessions they attended, which booths they visited and for how long. “You couldn’t get this kind of information in a physical show,” McGrath notes. 3. Find a green screen. One way to add a sense of immediacy is to video one of your top executives saying words of welcome in front of a green screen, and then overlay the video on the graphics of the event. Lotzof says. “It makes the experience that much more real if you show the person walking around the event,” he says. “It makes it feel a little more like you’re there.” Using this kind of gee-whiz technology contributes an element of dazzle that helps create a successful virtual event, McGrath says. “You have to make the event fun for people. It can’t only be educational.”

Are Real Profits to Be Made in Virtual Worlds?

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Upscale furniture maker Herman Miller opened its virtual doors for business in the online world Second Life, which has a population of millions of virtual residents, in October. The company’s storefront was put up by Rivers Run Red, a global consulting firm that helps companies establish a presence and launch products in virtual worlds.  “We’ve had a terrific response,” says Mark Schurman, communications director for Herman Miller, which is based in Zeeland, Mich. “Especially with our ‘Get Real’ campaign, which lets you replace your Herman Miller knock-offs bought in Second Life with genuine Herman Miller furniture — the real thing.” Herman Miller offers nearly 15 pieces to date on Second Life. Customers can purchase these furniture items, such as a coffee table, using “Linden dollars” – the currency of Second Life. The furniture, which then shows up in the customer’s digital inventory, can later be placed in the customer’s Second Life home. It’s an increasingly common scenario for businesses on Second Life, the incredibly popular online hangout. Created by San Francisco start-up Linden Labs, Second Life is a persistent world, meaning all the events that take place here in cyberspace carries on whether you’re logged in or not. It’s free to join, which first requires you to create a unique-looking “avatar” – a visual representation of yourself or perhaps your alter ego – but building a permanent home to hang your (virtual) hat will cost you roughly US $10 a month. But does this cyber world offer opportunities for small-to-mid-sized businesses? Good for branding but not yet for profits Virtual worlds definitely carry business potential, says Daniel Terdiman, author of The Entrepreneur’s Guide to Second Life: Making Money in the Metaverse (Sybex, 2007), but you need to do your homework. “Second Life is a great for brand building and advertising real-world products, but you’re not necessarily going to make a lot of money — at least not right now,” advises Terdiman. “It’s worth the minimal cost for a presence in Second Life but you have to think clearly about what you’re trying to achieve and how you go about it — the community is extremely sensitive to companies that come in and try to exploit them.” Many companies have set up a storefront in Second Life, which residents can visit and purchase products inside using Linden dollars. Companies, however, must pay for real estate (for as low as $20) and a monthly maintenance fee (between $5 to $15 a month). You also need to “staff” the store, such as when a query from a potential customer is then e-mailed to someone in your real world organization. On how to attract people to your store, Terdiman, whose book has an entire chapter on this topic, says it’s not as easy as you think: “In order to attract interest you need to advertize in Second Life classifieds, post to forums, talk to people, offer an incentive to come there and do research on where you want your store located,” Terdiman adds. Testing out products Another benefit to a virtual presence in this world is great for testing out products or ideas. “This is a good environment to test out what products will look like, such as toys, by letting people see or use them, before you make the investment in real life” explains Terdiman. Some computer game makers use Second Life residents to test out game concepts and provide feedback on how the experience can be improved. Terdiman says he likes what businesses such as Herman Miller have done by designing and selling items that Second Life residents can purchase and place in their virtual home or office. Schurman says “thousands” of pieces of the company’s furniture have been sold to date, but the company isn’t making a lot of money at this point. “For us, it’s not about revenue off the sale of these virtual designs — its more about extension and recognition of our brand, and extending relationships with consumers in the virtual world.” Schurman says that — just as in real life — they also have its furniture available for hotels in Second Life, such as the Crown Plaza. “This technology is also very interesting for communications, training and collaboration,” adds Schurman. “I believe Second Life can one day serve as a useful business tool for people to be able to meet virtually and have conversations or shared learning.”

The Push to “Pull” in Online Marketing

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Consumers are being bombarded with so much advertising today, from TV commercials to e-mails to logos on coffee cups and pizza boxes. People are kind of overwhelmed. So when they want information, they go out and get it themselves — “pulling” it. “I don’t think push marketing is going away,” says Gary Chen, an analyst for the Yankee Group, of Boston, who specializes in the small and mid-sized business market, “but you’re going to see a lot more pull.” Rather than accepting what’s being pitched to them, consumers are going out and finding information themselves. They’ll go out and look for comparative information on other products and services. A recent report, the second installment of the Intuit Future of Small Business Report, sponsored by Intuit and authored by the Institute for the Future, argues that technology will transform the small business sector. Key for customer acquisition will be the online presence. Here’s what you need to know to make your company’s presence online work for you: Join the conversation Accountants have done this for years, says Brad Smith, senior vice president and general manger of Intuit’s Small Business Division, taking their expertise on the road, offering advice with the goal of people being so impressed that they hire them. Take a page from their book and go to the (virtual) communities where these conversations are happening. Show up and give advice for free. Say someone has a question about a particular topic that’s in your field, go on there, and say, “I have a small business that does that. Here is what you need to know…” If all goes well, the group will consider you an expert in your field. And, of course that impression will extend past the particular group, thanks to search engines and connectedness of the Internet. Forrester Research has deemed this such an important form of marketing for businesses that they produced a report aptly titled, “Marketing’s New Key Metric: Engagement.” Author and analyst Brian Haven writes, “Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding.” Enter a virtual world Virtual world sites, like There.com and Second Life are great places for small business owners. “It’s a good place to find out what’s resonating,” Smith says. You can get on there and, through trial and error, determine the right pricing for items and test new products. People in the virtual worlds, also have lives in the physical world where they may remember your business and spend real money. You’ve got a reputation to protect Just like in high school, reputation is everything. “It’s the number one way that people select a small business,” says Smith. People are talking around you whether you know it not. Better to know what they’re thinking. Go to chat rooms and find out what customers are saying and figure out what it is that you have to improve. In short, as the “Intuit Future of Small Business Report,” succinctly puts it: “It’s all about providing customers and prospects with the right information in the right context at the right time.”

How an Extranet Can Help Your Business

Extending the corporate network through an extranet enhances interactions with clients, suppliers, partners and other businesses, but the challenge is determining how to balance the cost with the security needed. Creating a secure network to communicate with your partners and customers facilitates communications by providing around-the-clock access to business data such as order processing information, inventory availability, and pricing. However, while extranets originally were limited to expensive virtual private networks, new industry standard security protocols and software services have greatly reduced the cost of maintaining an extranet. Sharing program and marketing information through en extranet can increase sales while reducing customer service requests, according to Elay Cohen, senior director of product management at Salesforce.com. Extranets can be easily updated to always provide current information, and the user interface can be customized to appeal to each customer and to restrict access to only the relevant areas of the corporate database. Storing communications with partners within an extranet instead of sending information through email also reduces the likelihood that the data would be forwarded outside of the organization or accessed via an unsecured laptop. Drive customer satisfaction Allowing customers to check order status and product availability through an extranet increases satisfaction while eliminating unnecessary phone calls. Cohen says giving resellers or sales representatives access to customer data can increase sales as some of his client’s top partners have seen business double only six months after developing an extranet. Extranet technology varies by level of security offered, according to Tim Bajarin, the principle analyst at Creative Strategies. The simplest implementation is an area of a public website that is secured by a password. For example, Second Life, a virtual world where companies interact with customers through secured chat and email, fits the expanded definition of an extranet, Bajarin says. Extranets are now offered as “software as a service” by companies such as Salesforce.com and usually do not require additional hardware. These off-the-shelf applications extend the corporate sales, inventory and lead generation data to partners and include some customization features. Extranets hosted remotely by third-party companies are a good match for businesses with less than 50 employees that may not have an IT department, and the per-seat pricing can be more affordable than an internally hosted extranet, according to Bajarin. Securing business data Corporate data such as customer lists and wholesale pricing require greater security than is provided by a public website because of the potential for being compromised and exploited. Extranets that are extensions of virtual private networks, which protect data through stronger encryption such as the secure sockets layer (SSL) and feature more robust user authentication than typical Internet password schemes. Small businesses that need to limit the risk of exposing sensitive personal data, such as in the financial, medical, and insurance industries, should consider maintaining their extranets internally. Extranets configured by information technology professionals can provide the greatest control over data and flexibility in tailoring the interface to meet customer needs, but they are the most expensive to implement and maintain as they may require additional hardware and integration with existing applications. While customers and partners will appreciate being able to access all of their necessary data, small businesses should be careful not to eliminate talking to clients directly. “You should never automate the relationship side of business,” says Salesforce.com’s Cohen. Customers occasionally need human contact, so be careful to incorporate some personal communications into the business process.