How to invest US$5000?

Thank you! I think it can be done much more cheaply initially, though.

I think that, as in RL, if you are playing with a startup you have to go in for some sweat equity. So, I would plan to build it myself along with some help from a single builder. It's only one sim. If you go to current meeting spaces like NMC, Reuters, or Dr. Dobbs Life 2.0 space, they are simple builds. The only part that should actually cost any money would be renting media streams from internet servers. I've seen that for as cheap as 400L in SL for a single use.

As for advertising, you'd need very few customers initially, while working out the kinks. I'd do this through local newsletters and small newspapers with technical audiences. Again, nearly free. For example: entrepreneurs networking groups, regional technical newspapers, regional marketing organizations, alumni organizations, local language schools -- all very cheap to place a small advertisement or even a short article. A sim can only accomodate 40 people with any performance, you don't need a huge organization to require a meeting with 40 or fewer people.
.

Put it in a RL bank.
If you have to ask you obviously have no plan at all. Land market is in a dive it may not pull out of ever. And new product ventures don't require capital for materials in SL.

You can not invest in SL. You could spend your money to buy something you want in SL but in no way would this be an investment. You can make money in SL with a $0 investment. Anything you buy in SL is for your own amusement and if you find some way to turn your amusement into a money making endevour it is a bonus but is not related to what you have spent.

With no mechanism to truly control happens to anything you "purchase" in SL, remember you do not truly own it, LL can just close your account at anytime without refunding or reimbursing you for anything, nothing in SL can be considered an investment.

QFT

With the exception of land speculation (which is a highly volatile and speculative method of investment), there is little justification to invest that much real world currency in a Second Life venture unless you already have a coherent and comprehensive plan as to how and why you are going to invest it.

If you are a good salesperson yourself an additional way to market it might be by cold calling prospective customers. If you ever do this please consider hiring me to do some building/ad design/clothes making.

To begin with, and this is partly RL, partly SL - invest in the best computer and internet connection. Think of money you spend on in-world items, including land, not so much as a financial investment as a consumer purchase, to be enjoyed.

If I was looking for a return on a big investment, possibly a sim or two themed for hosting corporate events that can be hired by the day, week etc. Companies that might flinch at the idea of buying their own sim might be prepared to spend 10%-20% or more of the up-front cost on hiring a sim for a temporary event.

QFT.

The defintion of "invest" from Merriam-Webster.

---
Main Entry: 2invest
Function: verb
Etymology: Italian investire to clothe, invest money, from Latin, to clothe
Date: 1613
transitive verb
1 : to commit (money) in order to earn a financial return
2 : to make use of for future benefits or advantages <invested her time wisely>
---

I'm not trying to be obnoxious here; I just want to point out that when you say "invest" it sounds like you eventually want to make money out of it. We're telling you that you probably WILL NOT make a lot (or enough) USD to consider that the money you get out is worth more than the money and time you put in.

If by "invest" you mean "emotionally invest" in that you don't care about getting a monetary return, then heck by all means buy an island or two and play!

Buy rice, silver, guns, ammo, water purification devices, and batteries.

and Oil!!

I'd also stock up on pharmeceuticals. Oh, and scotch.

Just curious, why silver, and not gold?

booze, porn and cigarettes. When Al Quaeda takes over the country, they will be the underground currency of the people. I'm stockpiling all of those things now. I'll be a 21st century bootlegger. Plus, since I'm an American, I can stockpile guns now before the new leadership makes them illegal (points at the UK and laughs). Anyone messes with my liquor and porn and BLAMBLAMBLAM - a waterfall of hot lead headed their way. Take THAT Osama!

*hums Copperhead Road to himself*

In all seriousness, to the OP. We might be misinterpreting what you said. Oryx had a point.

Did you mean that you had $2000 to $5000 to spend in SL and you don't have any real expectation of a reasonable return? IOW, were you using the word "invest" to mean "spend"? Colloquially it's often used that way. I could say, I have $120 invested in Second Life. I'm emotionally invested, but really, i spent the money on airplanes, goofy avatars, tipping DJs and the like, nice clothes, some hair, etc. It's not an investment in the technical sense. My ROI is calculated in good times, not cash.

If you meant it that way, then stand back and prepare to be dazzled. $5,000 will get you a LONG way in SL if you are looking for fun. Buy an island or two, trick it out, have your friends over, maybe rent some out to offset the ongoing cost, whatever.

If you meant "invest" in the technical term, like you would invest in a mutual fund, then you have all the advice you need. Don't do it. In strictly financial terms, SL is a bad investment.

New answer from me as well.

If you meant invest monetarily, then my earlier post still counts.

However, if you meant it emotionally, as recently brought up, buy a few sims if you want to, and hire builders/etc to build your own personal paradise, be it shopping, beauty, a humongo Home, a school, anything you want. This is SL, you can have it

I'd be willing to help you achieve your 'paradise' if that's what you wished to do.

Few pointers on investment in SL

1 Dont trust anyone but yourself with your money period!
2 Don't blame anyone but yourself in the event you lose any of it.
3 Dont do what everyone esle is doing, Find your own thing and make your own trends
4 Spend a fraction of what your talking about, no need to go all out with a unsure business model
5 Golden rule, if it looks too good to be true, it probably is

'

Lower cost per ounce, and easier to use for smaller transactions. A bit of gold for large transactions might be smart, but day to day silver will be easier to deal with. Say gold shoots to $1500 an ounce and silver to $100 an ounce. You make a deal with the neighbor for 3 of his rabbits for $200, easier to hand over a couple of silver ingots, than be cutting and weighing gold. Unless of course he needs TP, then greenbacks will work.

Investing money with a company (Linden Labs) that is unreliable and denies any responsibility whatsoever for anything that happens to your money due to its actions?

There are much better investment opportunities for your money.

Don't put any money in Second Life that you wouldn't be willing to just throw in a lit fireplace.

I have never agreed with you more.

Gotcha, that's what I figured you were thinking. For that matter, might as well stock up on pure copper. Since it's getting more expensive, might be hard to find when you need to rewrap your genny coil.

I think pretty soon the hottest commodity will be potable water. Not that it's good for small transactions but who ever can control the supply will be the people who will be alright.

Unless they're human, in which case, they'll be knocking on my door with big barrels of water looking for smokes, booze or porn.

Attention: The President/ceo

Dear Sir And Or Ma'am,

Confidential Business Proposal

Having Consulted With My Colleagues And Based On The Information Gathered From The Second Life Chambers Of Commerce And Industry, I Have The Privilege To Request For Your Assistance To Transfer The Sum Of $47,500,000.00 (forty Seven Million, Five Hundred Thousand United States Dollars) Into Your Accounts. The Above Sum Resulted From An Over-invoiced Contract, Executed Commissioned And Paid For About Five Years (5) Ago By A Foreign Contractor. This Action Was However Intentional And Since Then The Fund Has Been In A Suspense Account At The Central Bank Of Teeny.

We Are Now Ready To Transfer The Fund Overseas And That Is Where You Come In. It Is Important To Inform You That As Civil Servants, We Are Forbidden To Operate A Foreign Account; That Is Why We Require Your Assistance. The Total Sum Will Be Shared As Follows: 70% For Us, 25% For You And 5% For Local And International Expenses Incident To The Transfer.

The Transfer Is Risk Free On Both Sides. I Am An Accountant With The Second Life National Petroleum Corporation (slnpc). If You Find This Proposal Acceptable, We Shall Require The Following Documents:

(a) Your Banker's Name, Telephone, Account And Fax Numbers.

(b) Your Private Telephone And Fax Numbers -- For Confidentiality And Easy Communication.

(c) Your Letter-headed Paper Stamped And Signed.

Alternatively We Will Furnish You With The Text Of What To Type Into Your Letter-headed Paper, Along With A Breakdown Explaining, Comprehensively What We Require Of You. The Business Will Take Us Thirty (30) Working Days To Accomplish.

Please Reply Urgently.

Best Regards

Right. I should have added "and those who have what such people want."

So, so true. The best month my sim had maybe netted me $150. If you factor in how many hours I spent working on the sim and servicing tenants that month, I made about $2 an hour.

Good advice as always, Des.