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I am currently running an experiment that I might decide in future to develop into a full scale system that other content creators in SL can benefit from. About half a year ago I started selling my virtual products on credit. At 1st I was setting credits manually in database for each customer upon their initial pre-payment of 30% and it was lots of unneccesary work. But recently I programmed what I call a credit vendor and now when customers pay 30% of full price of the product the remaining 70% is set as debt automatically. These remaining 70% then they pay off with 50% of their earnings from all of my systems when they withdraw them. From the 1st look it might seem that this is a bad idea and that it doesn't make sense and that as a content creator I am loosing money. But it is really not a bad idea and I ❤ the concept. And here is why: Drop rate of new signups in Second Life or Residents who stay in SL for only a month or few months is very high (like for any other free social platform - people try it out some stay lots drop out). If as a content creator I can sell my products for at least 10 - 30% of full price through credit vendor (as in case of many SL drop outs who will never pay off their debt because they stop using SL) I am still getting sales that otherwise would not happen. *The virtual goods I sell are no transfer so they can not transfer to another avatar and abandon their obligation to pay. Unlike with RL physical goods there is no material production cost and with virtual goods we can sell unlimited copies of it. Because above reasons to me selling virtual goods on credit makes a perfect sense. Another amazing reason worth pointing out is that i n this way I can get my product and brands in the hands of many more people and that makes for great marketing effect. If your product is not worn or used by anyone and for others to see it and talk about it then that is almost the same as if it doesn't even exist. (There is a scifi book author Cory Doctorow who issues his books with public copyright permissions, so books can be copied basically for free and his argument is that this way more people find out for his work and he also gets more sales). I learned great deal from reading about his rationale from a preface of one of his book. Selling something on credit is known concept already from ancient times. While for the selling of virtual goods on credit I kind of hope I am the 1st one or one of the 1st ones doing it in history. \O.. O/ Now 1 main disadvantage or risk is that a customer doesn't fulfill their obligation to pay off their debt (but at least they paid pre-payment). So if I ever build full scale credit system for other content creators to use the customers will have a credit rating / credit score that will be based on their past repayment of debts. Customers with bad or low credit rating won't be able to make any aditional credit purchases and content creators using credit vendors will be able to set minimum credit rating needed to buy on credit. I have been very happy with my credit sales little experiment. Since I've started offering my products on credit there is now a total for about 15 000 usd of customer/players debt on my books (database) for which its questionable of what % of it will be ever repaid but what is not repaid will be mainly because the SL users are no longer in SL. It has not hurt my product sales purchased paying full price. I think its actually boosting it. I've established trust with hundreds of customers. By giving them my trust first that they will respect their obligation. My goal is for the debt to grow to 21 000 000 L$ by the end of 2021 for a better proof on concept and if its recepted well by content creators community I might expand the credit system for others to be able to sell on credit through it too. We'll see \O.. O/ Some general advantages and disadvantages of selling on credit from the web: Advantages: An increase in sales may happen when you start selling on credit. Your customers are likely to buy from you as their cash flow is not disrupted and it is not necessary to pay upfront to competitors. Better customer loyalty. Offering credit to customers demonstrates trust. Disadvantages: It can lead to bad debts.There is no guarantee that the customers will pay back. Loss of income/capital. Bad debt is a loss of income as well as loss of capital you have invested in buying the goods. (Does not apply for virtual / digital goods of which there can be unlimited copies and copying has 0 cost). Strained relationship.