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breeze Herrey

Ads on Second Life Homepage

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Just wondering the stability of Linden Labs Finances since they are now selling spots on their Home Page of secondlife to the outside bussinesses. 

 

Any thoughts?  :smileysurprised:

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I mean they lost alot when sims started to get abandonned. I wish they would atleast sell the top ad space to merchants.

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Somehow I don't think you are really concerned about Linden Lab's financial "stability" but more concerned about whether or not Second Life is going to eventually cost you more to remain.  Linden Lab provides SL completely free of charge for anyone.  It's quite remarkable in today's age for any company to provide a complex virtual world that someone can use and enjoy without putting one single penny (USD) toward maintaining the service and majority of the users do just that......use and enjoy SL without putting a thing back into the company that provides it.  In fact a very large percentage of users make enough $L to cash out so that they break even........it costs them nothing because the $L they make equal what they put into SL in the way of tier or rent, or upload fees.  Some even make a profit.......some (a very small percentage) make a substanial profit (enough to pay them a real life income capable of a decent life style).  And you are "concerned" about LL's financial stability?

Most people don't like ads.........myself included.  I also don't like commercials on TV.  Ads and commercials pay the bills for the company who provides the space at a cost to the advertiser......it keep's things free (or nearly free).  I've noticed the ads.  But instead of getting upset (either for concern about LL's financial health or that LL is making money selling ad space to outside interests) I actually thought "It's about time.  Make more money so that SL can remain free (or nearly free).  I keep saying "nearly free" because I'm a premium member and pay $90 per year on my quarterly payment plan and that $90 per year has not increased a single penny (USD) in the over 7 years since I became premium..........I don't want it to increase either.

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well said Peggy. Way too many freeloaders in SL who then go out and complain when there's ads.

Same crowd that complains about sim owners asking for donations, then complain when in lue of donations those sim owners put up some shops, and THEN complain when those sim owners have the guts to close their sims when that too doesn't bring income because the visitors never buy anything from those shops.

Sadly the "gimme, gimme, I AM ENTITLED" generation is here and it seems they're here to stay.

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Peggy Paperdoll wrote:

In fact a very large percentage of users make enough $L to cash out so that they break even........it costs them nothing because the $L they make equal what they put into SL in the way of tier or rent, or upload fees.  Some even make a profit.......some (a very small percentage) make a substanial profit (enough to pay them a real life income capable of a decent life style).  And you are "concerned" about LL's financial stability?

 

When a creator pays upload, tiers and MP fees, that money goes to LL.  When a creator cashes out, the money comes from other residents buying the $L's the creator is selling not LL.  LL takes a cut from both buyer and seller then charges another fee to the seller to send the money to PayPal or their bank.  So that process is income to LL not an expense.  The creator cashing out may be breaking even or even making a profit, but LL is making money on the cash out process too. 

I can guarantee that even though I am not a premium member that I have paid LL more for 6+ years in fees and tiers than a large percentage of premium members ever will.  I hardly consider that using SL for "free".

I don't begrudge LL advertising revenue on their web site, nor will I complain.  However, they should allow SL merchants to take ads out for the same rates.  They should have the opportunity too.

@ the OP.  If you don't want to see the ads, install an ad blocker on your browser. 

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Peggy Paperdoll wrote:

Most people don't like ads.........myself included.

I like ads :) - of the type that LL has on the site. I've made loads of money from them in the past - 6 figures real money. And I still make money on them now, but a lot less than before.

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Amethyst Jetaime wrote:

I don't begrudge LL advertising revenue on their web site, nor will I complain.  However, they should allow SL merchants to take ads out for the same rates.  They should have the opportunity too. 

Would merchants be willing to pay for them though? The current ads are from a broker, and not from each individual advertiser. The advertiser pays the broker a certain amount of money every time someone either clicks on the ad or buys/ registers/sells having clicked on the ad, and the broker pays LL some of it. LL doesn't know what the advertiser pays to the broker. They only know what they'll get paid per click or sale. The amount the advertiser pays is entirely up to the advertiser - and it's all in real money.

5 cents per click is a very low amount in these systems, but not uncommon. A merchant would have to sell 250L worth of items for for every 20 clickthroughs to break even. Would merchants be willing to pay that? But 5 cents a very low amount to pay. Some of those affiliate ads pay many US$ per click (I've seen it go up to between 10 and 20 USD per clickthrough), but most are low cost. On the other side, the siteowner (LL) gets to choose which ads to take and it's typical to chose ads that would have a wide appeal and that pay more than the lowest amount. The fact that an ad for selling gold is displayed so often, shows that LL has chosen higher paying ads and wouldn't be interested in ones as low as 5c per click.

Would merchants be willing to pay a higher amount per clickthrough? Say 50 cents?

What I'm getting at is that SL merchants on the whole would not be willing or able to pay what RL advertisers pay. I know that there have been odd ones in the past that have paid ridiculous monthly amounts for advertising in search, but they have been extremely rare, and they only did it because it was an RL business expense, and they expected to make a big loss in SL.

So it wouldn't work for LL if merchants could occupy the advertising space that RL advertisers currently occupy.

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It’s amazing how someone can reply to post forum and assume the reaction of the author for a particular discussion. 

“Somehow I don't think you are really concerned about Linden Lab's financial "stability" but more concerned about whether or not Second Life is going to eventually cost you more to remain”

Did I post in the wrong section of the forum (psychiatrist?)

You quoted “Linden Lab provides SL completely free of charge for anyone”.  Although this may be true, there are limitations on what you can do while being on free mode avi.  Such as apps on iTunes and android there are free apps to get you started but you have to pay eventually for extra features.  (ie) taking a picture will cost you 10L to upload into your inventory. 

I just needed to add that comment before we continue to be off the topic..

The point is ..Whether or not you like the ads posted on the LL homepage,  what are the thoughts of residents on LL stability since now they are posting ads.   And by the way, I’m an estate owner since 2005 who rents out sims and or lands to residents

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Amethyst Jetaime is completely correct about how Linden Lab makes money from all accounts, even the free ones. The only people that don't contribute to LL's bottom line in some way are those that do not spend a single linden or receive paid gifts. How many do we know like that?

No one really knows the financial condition of Linden Lab but linking the appearance of ads with the 12% decline in private sim revenue last year and another 2% already this year is easy to do (according to gridsurvey.com, 12% equals just over $6 million in lost revenue compared with 2011). Like most US companies though, the "stress" is less likely about covering bills and more about paying what their investors expect in returns. I seriously doubt those who receive LL's profits even play in Second Life or care about the user's experience. As long as returns are good and growth is promised, they are happy on their real-life yachts boinking real life strippers while their real life wives are out spending real life money on real life Armani! :)

Personally speaking, the ads bother me because I feel like it signals Linden Lab is cashing out Second Life more than usual. Perhaps they are taking notes from Zynga too; they started interrupting actual play with advertisements that are literally labeled "Sponsors of free game play." If that is the case, it won't be long before free SL accounts are paused for 16 seconds during their in-world pixel boinking to watch an advertisement for Britta. :)

 

 

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Nuhai Ling wrote:

Personally speaking, the ads bother me because I feel like it signals Linden Lab is cashing out Second Life more than usual. 

I'm not suggesting that you're feeling is misplaced but anyone who has a well-used website could be considered to be foolish not to take advantage of the free money that is available for affiliate ads - and there really is a lot of free money to be made.

In the past, ads on websites were usually individually arranged; i.e. advertisers made private deals with the website owners. Then Google came up with AdWords (advertising on the Google search results pages), closely followed by AdSense (affiliate ads on other websites), and AdSense ads were all over the web, to the extent that all other major search engines copied Google's model because it was such a huge money-spinner and, up to then, no search engine had found a way to make money. Google became the biggest advertising agency in the world. For a long time, it's been extremely normal for websites to have affiliate ads on them, and it's never been an indication of the website falling on financially harder times. It's only indicative of website owners choosing to avail themselves of some free money.

As I said, I'm not suggesting that your feeling is misplaced, but the ads on the SL website don't generate even a spark of the same feeling in me. They only generate a feeling of LL doing a very sensible thing.

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"...

I can guarantee that even though I am not a premium member that I have paid LL more for 6+ years in fees and tiers than a large percentage of premium members ever will.  I hardly consider that using SL for "free".

..."

------------------------------------------

And I believe I said that the "majority" of the users have a free account.  I am also well aware that a "free account" (basic) can (and many do........perhaps you are one of those who do) own private estates...............to the tune of just under $300 (USD) per month.  I know you are smart enough to know I was not referring to those "free" accounts.  I'm speaking about the thousands of basic (free) accounts who do not put anywhere near as much into SL as they take out of second life.  I know several people (one is actually a pretty good friend of mine) who have only purchased a few USD worth of $L over the years yet have cashed out well over a couple thousand USD........those people are not that numerous either.  The point is that since you can (and many do) use and enjoy SL for 100% free and you can even "make" money without spending anything or, like my friend, very little.  There ain't many platforms anywhere in the world that one can do that.  And then complain about a few ads?  Perhaps the complainer would like the "free" part to go away so they don't have to deal with the ads?

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