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Corporations leaving...good thing or bad?

Winter Phoenix
Voyager of Experiences
Join date: 15 Nov 2004
Posts: 683
07-17-2007 18:54
From: Aleister Montgomery
Winter, you posted under the headline "who the hell is American Apparel?". That made me realize that I didn't know the company name before I read about them in articles about SL. How could American Apparel possibly consider their SL presence a flop? SL users all around the world know their name by now, people who never heard of them before.

I'd call that a success; getting known is what advertizing is all about. Doesn't matter that they became famous by articles about their SL customers being shot by griefers. Every publicity is good publicity. If they ever expand to Europe or Japan, there will be people who remember their brand name.

As far as advertising costs are concerned, SL can be considered cheap advertising. If they have alerted you and I to this corporate brand, then there is some success there. However, I still havent bought anything from those guys, have no intent to, and dont plan on telling all my friends about em either. Hopefully the Japenese who have encountered the American Apparel brand will promote it better than me. ;)
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Gordon Wendt
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Join date: 10 May 2006
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07-17-2007 19:03
From: John Horner
Agreed.

Both Sara Nerd and Anshe Chung started out as players and by dint of hard work created a worthwhile first life income from a Second Life platform, although I don't think Sara's business really competes with Anshe in terms of size.


Well that and one of them is a good ethical person and the other one...<EDITED OUT>, I won't say which one since that would be a violation of forum rules though I think I've made it quite clear in the past.
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Chip Midnight
ate my baby!
Join date: 1 May 2003
Posts: 10,231
07-17-2007 19:47
From: FD Spark
I am basing this on someone who isn't corperation but wanted to started business in SL and what he paid for developing the sim, yet he didn't seem to have clue what he was doing. The developer attitude was I am here to make as much money as I can, nothing more, nothing else.


It isn't really the developer's responsibility to teach someone how to create a successful SL business. That would be expecting a bit much. If someone is going to lay down that kind of money to have a sim developed they should have already done thorough research and have a good business plan., and they should already have a successful and growing in world business that's ready to expand.

Coprorations come here for exposure and to connect with the SL demographic, not really to have a thriving in world business, so it's a different ballgame really. Unless people have a lot of money and don't expect more than to get some good press (which they won't unless they're already a known real world brand) I wouldn't really recommend anyone try to buy their way into SL success. SL businesses are something that really should be started small and built up as they become successful so it's not a big loss if it doesn't take off. And there's no way to predict if it will or not. SL is faddish, and a lot of it comes down to plain luck. It seems to me that people who look at SL as an investment opportunity and set out to make profit as their goal almost always fail. If you look at who the big money makers are in SL (including the development companies), they pretty much all started out just like anyone else, made some cool content, got known, built up a reputation, and slowly became big. You can't buy that.
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Showdog Tiger
Registered User
Join date: 30 Nov 2005
Posts: 404
My Two Cents
07-17-2007 20:03
Dearly Darlings,

I think Chip and Michael have some valid points. From my end being a "Good Corporate Wife" I'd be mighty teed off if I discovered Maneo's company was here in SL. I can't get them to contribute to my RL charities (not all of them are about pets) so finding them here would be to me at least, a mighty insult. I hate the fact that ***** or **** or any other company is here...except the educational ones. I did not come here for comercials. I came here to express my self and learn a few things. Thanks to citizens...NOT companies... I know what an alpha chanel is, how to make a PDF file, how to clear histories, and much to my surprise what the latest fashion trends are. The best thing of all I now have some lovely new friends!

I hope you all have a lovely evening!

Ever Yours,

Mrs. Showdog Tiger
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Usagi Musashi
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Join date: 24 Oct 2004
Posts: 6,083
07-17-2007 20:10
From: Chip Midnight
It isn't really the developer's responsibility to teach someone how to create a successful SL business.


Chip wasnt that the Instructor/ and or the mentor group(s) were for? To help induce those that did not understand how to either build or create content?
Tami Amat
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Join date: 7 Mar 2007
Posts: 114
07-17-2007 20:24
From: Zaphod Kotobide
Only one company comes to mind which actually had a tangible business objective coming into Second Life and developing a presence, and that's Starwood Hotels. The Aloft Hotel project was a perfect match for the Second Life platform, as it enabled them to build something Residents could touch, feel, move around in and interact with. At the conclusion of the project, Starwood walked away with suggestions that they could, and ostensibly will, incorporate into the real world design of the property. I only wonder if they're bailing too soon.


I agree with your point of view about Starwood. At the time I took a visit there, I was working with a young SL hotel as Corp. Marketing Manger and scouting out our competitors. It blew our hotel right out of the water! But my point is, I also wonder if they didn't pull out too early. In fact, I was disappointed to hear they were planning on leaving.

Remembering back in my mind, it was as if I had a real visit to a hotel it was so nicely put together.

I don't think we will be hurt with businesses leaving SL. I do agree with the early poster that they may just come back once we mature.

An issue taking point for me would be the lack of advertisement. It won't "just happen" that their bottom line will be positively affected just because they showed up. I do agree that may be a misconception on their part. But any good business man or woman should have a plan laid out and be responsible for their investments. Even if to them it may seem little to no risk investment. It all counts because time is spent and time is important.

I dunno...SL needs to bump up on customer service, and bug fixes. Maybe even introduce something to these RL companies regarding intermediate skill training or something. Instead of them coming in and just flipping land around until it looks right and waiting for the bucks. Just doesn't work like that.
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Tami Amat
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Cocoanut Koala
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Join date: 7 Feb 2005
Posts: 7,903
07-17-2007 20:32
I think for the most part, these development companies sold the corporations a pig in a poke.

But hey, it's their money.

coco
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Tami Amat
*winks*
Join date: 7 Mar 2007
Posts: 114
07-17-2007 20:32
From: Chip Midnight
It isn't really the developer's responsibility to teach someone how to create a successful SL business. That would be expecting a bit much. If someone is going to lay down that kind of money to have a sime developed they should have already done thorough research and have a good business plan., and they should already have a successful and growing in world business that's ready to expand.

Coprorations come here for exposure and to connect with the SL demographic, not really to have a thriving in world business, so it's a different ballgame really. Unless people have a lot of money and don't expect more than to get some good press (which they won't unless they're already a knows real world brand) I wouldn't really recommend anyone try to buy their way into SL success. SL businesses are something that really should be started small and built up as they become successful so it's not a big loss if it doesn't take off. And there's no way to predict if it will or not. SL is faddish, and a lot of it comes down to plain luck. It seems to me that people who look at SL as an investment opportunity and set out to make profit as their goal almost always fail. If you look at who the big money makers are in SL (including the development companies), they pretty much all started out just like anyone else, made some cool content, got known, built up a reputation, and slowly became big. You can't buy that.


Very strong points and something I've just recently learned myself. Nice to see this in writing for confirmation sake from someone who knows what he's talking about. ;)
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Tami Amat
In-World Budget Builders
Joy Iddinja
Registered User
Join date: 15 Sep 2006
Posts: 344
07-17-2007 21:06
Personally, I think the corporations in question never tried to use SL. They got an island, but they never actually tried to reach residents. They just assumed 'Hey, I'm the Big Macha Corportation. They'll give up their local-yokel made car in order to buy mine, with the big a** ad on the side!"

In short, they haven't learned that you can't treat SL marketing like RL marketing. You have a different population and different needs and desires. They didn't understand that the SL market is still pretty much still 'early adopters'. Those folks are looking for quality, not fad potential. SL is growing in popularity, but it's still a ways away from making the scene, and more importantly, many companies are still adapting to the web. I mean, look at the music industry. They've only recently been able to figure out how to market music online, instead of hunting down 13 year old downloaders, and the web nearly 20-something years old.

Old dogs don't want to learn new tricks, until they can't avoid it; if LL makes it past its growing pains, with LL still profitable, these corps will be back.


From: Raymond Figtree
Wonder if Torley will write a blog responding these articles as well?

http://www.techcrunch.com/2007/07/14/will-the-last-corporation-leaving-second-life-please-turn-off-the-light/

EXCERPT: The LA Times has an interesting article up on the failure of real life businesses in Second Life. The crux of the piece is that despite the hype, real life businesses are closing down their Second Life outposts due to little to no interest in them.

The reasons for the failures are open to debate; from firms not engaging Second Life citizens, through to simply a lack of actual people using Second Life (the LA Times says it peaks at 40,000 users at any one given time).

http://www.latimes.com/business/la-fi-secondlife14jul14,1,3135510.story?ctrack=1&cset=true

Looking at how many avatars you can fit on a sim, no company should ever have thought SL would be a revenue stream. The only thing a Second Life presence ever had going for it was chance for companies to get a press release picked up by mainstream media. Now that the press releases don't get picked up, the businesses are picking up and leaving.

IMO, the Germany scandal is when SL jumped the shark. That taint has had a much bigger impact than it seemed it would at the time.

Another factor: Performance issues. I advised our advertising agency's clients against coming to SL because there was no way to make sure any event would not be a laggy crashy disaster.

When Edwards' campaign area got trashed it pointed to more vulnerabilities.
Usagi Musashi
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Join date: 24 Oct 2004
Posts: 6,083
07-17-2007 21:09
From: Joy Iddinja
Personally, I think the corporations in question never tried to use SL. They got an island, but they never actually tried to reach residents. side!



Its all "PAID" advertizement your refering too ? Hum...........Nice thinking.
Chip Midnight
ate my baby!
Join date: 1 May 2003
Posts: 10,231
07-17-2007 21:23
From: Usagi Musashi
Chip wasnt that the Instructor/ and or the mentor group(s) were for? To help induce those that did not understand how to either build or create content?


hehe, no. Those were more about "um, I can't figure out how to change my hair. Help!" not "teach me to make the Next Big Thing (tm)"
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Tybalt Brando
Catalyst
Join date: 25 Dec 2006
Posts: 347
07-17-2007 22:04
It could also have to do with a majority of user's interest in Sex. Throw a rock, hit a strip club. Look left or right, see somebody selling something to help you get e-laid, or to make your e-scrogging experience more enjoyable.
Bree Giffen
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Join date: 22 Jun 2006
Posts: 2,715
07-17-2007 22:58
If a corporation hired me to give them an inworld presence I would buy a hundred thousand 16x16 sqm plots and put spinning ads of their product all over the mainland. So how about it American Eagle Outfitters?
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Usagi Musashi
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07-18-2007 00:42
From: Chip Midnight
hehe, no. Those were more about "um, I can't figure out how to change my hair. Help!" not "teach me to make the Next Big Thing (tm)"


Well instuctors WERE ment to help stimulate creative and people wanting to do business within Sl. That was the purpose of the creating of the instuctors group. Mentors well they gave Instuctures then mentor status after for some odd reason thats what i included mentor.

Usagi
Butch Adzebills
Bold, yet beautiful
Join date: 21 Oct 2006
Posts: 269
07-18-2007 01:04
From my point of view, living in Australia...

Who are Starwood Hotels, American Apparel, etc? Would too many non-US/Canadian folk miss their presence? Would too many non-US/Canadian folk know who they exist?

Many corporations think they're more impressive than they really are.
Warda Kawabata
Amityville Horror
Join date: 4 Nov 2005
Posts: 1,300
07-18-2007 03:39
From: Butch Adzebills
From my point of view, living in Australia...

Who are Starwood Hotels, American Apparel, etc? Would too many non-US/Canadian folk miss their presence? Would too many non-US/Canadian folk know who they exist?

Many corporations think they're more impressive than they really are.


Amen to that. For me, American Apparel and Starwood are still just remote companies that have/had a SL presence, but whom, even if I were interested, I wouldn't be able to spend money on, simply because they don't exist in my rl area.
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Brenda Connolly
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Join date: 10 Jan 2007
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07-18-2007 03:51
From: Butch Adzebills
From my point of view, living in Australia...

Who are Starwood Hotels, American Apparel, etc? Would too many non-US/Canadian folk miss their presence? Would too many non-US/Canadian folk know who they exist?

Many corporations think they're more impressive than they really are.


Most of them aren't that impressive to us here in the States either. You aren't missing much.
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Join date: 17 Jul 2007
Posts: 22
07-18-2007 03:55
I don't think a couple of corporations leaving Second Life is really going to change anything. Linden Labs is basically a powerhouse when it comes to money - with residents who spend as much we do, I don't see that changing any time soon either, you know, unless something less buggy and much better comes out soon :P
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