Coinciding with the release of Second Life 1.8, we will be updating our inworld classifieds system to feature dynamic pricing, direct teleportation links embedded within ads, a lower starting price for listings, ability to sort by price paid, and a more intuitive user interface.
To place a classified ad, the process will remain similar to 1.7. You will right click your avatar, select 'Profile' from the pie menu, select the 'Classified' tab, and the 'New' button to create your ad.
Dynamic pricing will be a substancial improvement over the current system in that you will be able to set your own price for your ad. This will prevent spam as default listings will no longer be sorted alphabetically. Ads will be listed in the order of highest price paid. This price will be visible in the directory viewer. There will be no caps on the number of ads you can place nor a cap on the total number of ads in the directory. The minimum bid for ad placement will be $50L for a one week run. If two or more ads placed are purchased at the same price, the listing will sort with the most recently submitted ad at the bottom and advance as earlier ads expire, thereby giving everyone a chance to reach the top of the listings per price category. You will also be able to sort the listings by price paid from high to low and vice versa. This allows low-priced ads to be seen at the bottom of the list so no one is excluded as long as they can pay the nominal fixed minimum.
Our reasoning behind this design is in part:
1. The most valued ads by advertisers will be listed first, with newest items most visible for real-time value to shoppers. This will compel repeat viewings as listings change every hour with new products and services.
2. This pricing system tells shoppers how much the advertiser cares about the ad. It also lets other advertisers know what residents are willing to pay to be in that position.
3. Allowing residents to sort by bid price allows low-price bidders to feel they have some visibility because they're at the bottom of the list.
We believe that sorting by highest price paid for the ad listing will not create a monopoly situation since the top listing is available almost instantly to anyone who is willing to pay for it. In effect, this should create a self-balancing system. If someone has a lot of money and is willing to spend it, they can get a large amount of advertising placed. However, they are subsequently counting on the ads to be effective to sustain the high cost of ad placement for their business. In a free-market economy this should balance itself out.