What is Digg?32 Comments
- Peralton, on 10/12/2007, -1/+26What they don't mention is how you convert Lindens to real-world cash. You have to "sell" the Linden for cash on what is essentially a player-driven market. If all or even a few of those 116 moguls tried to convert their "fortunes" to cash, the conversion rates would plummet and most likely they would never find enough people to buy their Linden. I'd wager that the bulk of their fortunes are locked up in virtual money forever unless someone with more cash than brains buys them out on Ebay.
Kudos to those making money (and yes they exist, and yes, I'm sure some are making a living at it), but there are a lot of things left un-said in this and every other article about SecondLife that would diminish the PR being given.
It's a cool sandbox world and I don't begrudge them any success, but whoever does their marketing deserves a big raise for all the hype they have constructed in the corporate world. - sunimoto, on 10/12/2007, -4/+22ok, this is the geekiest stuff I've ever seen
- Azio, on 10/12/2007, -7/+19Can everyone please shut the ***** up about Second Life. It's Cybertown with furries.
- Nateon, on 10/12/2007, -1/+9Where's the huge cybersex enterprise?
- FutueTeIpsum, on 10/12/2007, -5/+12Wow... What a bunch of losers (Second Life people)...
These people need to get a first life. - bobjebus16, on 10/12/2007, -5/+11Only dugg because of the name of the person who wrote the article.
Still amazing at how much people make from this though. - ScionAltera, on 10/12/2007, -2/+6I know for a fact that at least the top two people on that list make their livings in real life (aside from just trusting the article to be properly researched) on their Second Life earnings, by doing exactly what you said: selling their Linden Dollars for US Dollars. I've never heard of any of the other folks on that list. I quit Second Life over a year ago, but I was making pretty decent real life money for awhile in college by playing the currency market.
- Junkyarddawg, on 10/12/2007, -3/+7I wish I could digg your post more times. Absolutely 100% spot on.
- bloodomen13, on 10/12/2007, -1/+4Only a few people will ever be rich in real life too. Must be a scam!
**1. Little to no information offered about the company unless an investor purchases the products and becomes a participant.**
Linden Labs makes their information available. Nothing hidden that I can see. It could be argued that the user does not know the extent of the work involved to possibly turn a profit in SL but, that is the user's own failings for not investigating and researching data that is readily available (or going into it with their head in the clouds).
**2. No product, or a product being sold at a price ridiculously in excess of its real market value. As with the company, the product is vaguely described.**
Are Lindens priced above market value? Can't say something has a market value that hasn't existed before. Is there no product? You are essentially purchasing a software license when you buy Lindens. The purchase gives you the right to use Lindens within SL. How is this any different than, say... World of Warcraft, where you pay a monthly subscription fee to have access to something that has little or no intrinsic value?
Instead of being forced to pay a monthly fee you make micropayments at YOUR OWN discretion. There are ways to earn money in SL without putting a single penny into it. No one is promising a payout by investing.
**3. An income stream that chiefly depends on the commissions earned by enrolling new members or the purchase by members of products for their own use rather than sales to customers who are not participants in the scheme.**
The income stream of individuals is NOT based on commissions of new referrals or sign ups. Accounts are FREE. The income stream of sellers is based on the products they produce. The currency earned by sellers does not have to go to anyone higher up the chain. It is theirs. The only payments to anyone else would be for rental of space/land or any extra services rendered to the seller... much like a real world situation.
**4. A tendency for only the early investors/joiners to make any real income.**
Anyone can generate income... Not just early investors. If you have a product or service that the public likes they'll frequent your services. If you want to flip land or sell items it's certainly possible to start doing that tomorrow. A big part of the problem is (and due in part to the glorifying of the media) is that there is actual work involved in finding a niche. The media makes it seem so easy yet they don't explain that there are risks.
Linden Labs makes most of their money from selling virtual land (many times to large corporations - which is then developed by contractors that said corporations hire seperately). If this is what you're referencing then it would be necessary for you to call out ALL web hosting companies in your claim as it is the same thing. You are leasing space on their servers. I ask you... how do any of the identifiers of a pyramid scheme apply here?
Keep in mind too, that the press release that started the whole media blitz (Anshe Chung's proclaimation) was not a press release from Linden Labs, but a release from Anshe.
The whole point of a pyramid scheme is to keep it running as long as possible so the that gains for the heads are greater. If this was the case, why is Linden Labs open sourcing the server technology? (http://blogs.zdnet.com/social/?p=142) They've already opened the client. I could see this if it were a last ditch attempt to do something in light of a failing scheme... but as you noted, when the population shrinks the economy shrinks, which would lead to the failing of the scam. Though the population continues to grow at an alarming rate... so, by your justification, that would mean the scheme is still successful and making this move now would defeat LL's entire purpose. - Junkyarddawg, on 10/12/2007, -3/+6Only a very few people will ever make money in Second Life, yet the get-rich-in-real-dollars angle is the main selling point of this... 3D chatroom? Sims-simulator? This article is a nice example of the kind of hype Linden Labs produces/encourages to draw in new customers - because the player base must expand, as long as the player base, and therefore the virtual economy, expands, all is fine.
The fun starts when the player base no longer expands, or starts to shrink, as it inevitably will: that's when the fact that nothing in Second Life has any intrinsic value _at all_ comes in to play. - GeneralKickass, on 10/12/2007, -0/+2I believe they forgot Microsoft, Microsoft and Microsoft.
- ahpro, on 10/12/2007, -3/+5And yet nowhere does it mention entropia universe which is another virtual universe where in 2004 a guy bought a virtual asteroid for $100,000 and made that money back in just 8 months and is now in a whole lot of profit.
- solidad, on 10/12/2007, -2/+4To anyone bashing someone who is in second life...um why the hell do you care? Sounds more like jealousy than anything else. Why bother even saying anything? Then again why do I care about the people bashing the people that play second life....Hmm the cycle never ends.....
- GeneralKickass, on 10/12/2007, -0/+1I would give this a shot if I had nothing better to do. Sounds vaguely remotely interesting.
- Aharoni, on 10/12/2007, -2/+3"He's signed big names such as Microsoft, General Motors, Toyota, Sun, Intel, Microsoft,..."
don't forget Microsoft! - bloodomen13, on 10/12/2007, -2/+2@ Nateon : Actually, Stroker is the representative you're inquiring about.
@ Junkyarddawg: Please explain just exactly how SL is a pyramid scheme. Yes, I've read the erroneous and un-researched article Valley Wag posted months ago claiming (falsely) that it was a ponzi scheme. But do tell us how it's a pyramid since you seem to be so certain it is. - bloodomen13, on 10/12/2007, -4/+3Yep, my wife, daughter, employer and friends obviously can see that I have no "first life". /sarcasm
It's all about moderation. If you choose to spend your entire existance in a virtual world you have deeper problems to worry about. Same could be said for anyone who becomes obsessed with anything (work, games, etc.)
Singling out SL is just easier since it contains "Life" in the name. - FutueTeIpsum, on 10/12/2007, -2/+1Ahh.. Here's another nice one:
"5.3 All data on Linden Lab's servers are subject to deletion, alteration or transfer.
.....MAY BE DELETED, ALTERED, MOVED OR TRANSFERRED AT ANY TIME FOR ANY REASON IN LINDEN LAB'S SOLE DISCRETION. " - FutueTeIpsum, on 10/12/2007, -2/+1From the terms of service:
"1.4 Second Life "currency" is a limited license right available for purchase or free distribution at Linden Lab's discretion, and is not redeemable for monetary value from Linden Lab.
You acknowledge that the Service presently includes a component of in-world fictional currency ("Currency" or "Linden Dollars" or "L$"), which constitutes a limited license right to use a feature of our product when, as, and if allowed by Linden Lab. Linden Lab may charge fees for the right to use Linden Dollars, or may distribute Linden Dollars without charge, in its sole discretion.
Regardless of terminology used, Linden Dollars represent a limited license right governed solely under the terms of this Agreement, and are not redeemable for any sum of money or monetary value from Linden Lab at any time.
You agree that Linden Lab has the absolute right to manage, regulate, control, modify and/or eliminate such Currency as it sees fit in its sole discretion, in any general or specific case, and that Linden Lab will have no liability to you based on its exercise of such right. "
So, essentially, if their service or servers ***** the bed and the company folds, people who have spend thousands of real dollars for Linden dollars, will get nothing, and will have lost EVERYTHING... - Junkyarddawg, on 10/12/2007, -5/+3Second Life: Dress-up + pyramid scheme.
- FutueTeIpsum, on 10/12/2007, -5/+3exactly..
Wow.... 116 of 1,683,013 users..
That's like 6.8924007122939632670692383243623e-5 Percent...
If I had a spare $100,000 in the bank, I could become a Second Life success as well. - iamanalog, on 10/12/2007, -4/+2ah damnit, i wish i didnt have a life.
- mahsah, on 10/12/2007, -3/+0In this story, we digg astroturf.
- Kalibr, on 10/12/2007, -4/+1I think these people should concentrate on First Life.
- Phssthpok, on 10/12/2007, -8/+2I'm always laggy in Second Life. The world around you resolves as fast as your connection. As I walk around the world it slowly materializes. That makes me tire of this experiment much faster than WoW.
- Junkyarddawg, on 10/12/2007, -8/+1It's not newsworthy. Stories like how some of the biggest money are made by a porn industry where, for instance, "furries" can go to whorehouses and pay to bang supposedly underage "baby furries" could tarnish the reputation of Second Life, so they're not carried by mainstream press.
Although why mainstream press is so worried about the reputation of the big pyramid scheme known as Second Life is not known to me. Maybe it's just fashionable to like Second Life. Maybe they own property there. I don't know. - Nat3r, on 10/12/2007, -11/+3...its Douglas Adams...and Tricia Macmillan, im digging you down because you dont know your books...
- TroubleInMind, on 10/12/2007, -10/+2And there's AIDS in the pool. Pool's Closed! Viva Longcat!
- skyhighrockets, on 10/12/2007, -13/+4I think you forgot to add to words on the end of that
It should be:
"Second Life Sucks" - inactive, on 10/12/2007, -14/+4im so getting dugg down
Second - inactive, on 10/12/2007, -15/+3Cool) +1
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