How to make reselling work for you. This is the second part of a four part series on making money in virtual worlds such as Second Life.
What Can You Resell?
What can you resell – almost anything that isn’t non-transfer. This includes land, creations, scripts and even personal services (which we will get onto later).
There are two main types of affiliates. Firstly, ones that take a big cut and secondly ones that you pay for up front for but take a smaller cut. Avoid those that do both! Re-seller packages vary in cost greatly. I’d advise anyone looking to resell as an affiliate to first scout out a promising area. Next get a re-seller package from a good brand for as low a price as possible (usually means one where the designer / merchant takes a significant cut). Then give it a go to test out the location. If you offer plenty of quality freebies too, people passing will pick these up, so it’s a good measure of the kind of traffic your shop is getting.
If you start to do well, switch your brands for ones that take a smaller cut from your takings. Always keep your shop fresh and filled with new stock. If you don’t, your store will start to look tired and fewer people will visit, or return.
It’s usually the old model of buy in bulk, sell as individual items. If you rent a large area of land, break it down into smaller areas and rent them on, you can make a little bit of money. The real truth is, if you don’t rent out all your plots, you barely cover tier. This is made even harder by Linden Lab because of their Atlas program, which means that land barons with over 20 sims have an advantage over you – they pay less for their tier to Linden Lab. This means they can always undercut you.
Another issue here is that you NEVER EVER ‘own’ land in Second Life. All land is server hosting and Linden Lab owns the servers. Their business model is that they rent server space as virtual land and you pay them a fee for renting that space. In real terms, land reselling is strictly subletting server space.
Another form of reselling is pimping. No I don’t mean putting your ‘ho’ on the street corner. I mean that a lot of people are looking for touts and will pay them to drop note cards and other things on the unsuspecting public. This isn’t a practice I approve of because it’s pretty intrusive. Because it is often the only way to get a new place or business noticed, people will do this, so it’s one way to make a few bucks.