Linden Lab displays skewed values. How unusual.

Is it me or is there something wrong with LL when it will continue to fund at least 4 adult regions which do nothing to promote Second Life or even adult activities yet allows such gems as The Lost Gardens of Apollo and many others (including the AM Radio region in a few months time) to vanish from the grid?

I don’t know what the reason is for this but given a choice, I know what I’d choose for Linden Lab to spend their resources on and it isn’t squandering them on 4 barely used regions with no artistic merit.

Linden Lab in another data security breach. Possibly payment details, definitely cardholder name and email address

Linden Lab has outsourced the processing of payment details to a company called Dragonfish, who claim to be  ”The Leading Provider of Online Gaming Solutions”.  How true this claim may be is for others to decide, one thing is certain, they appear to play fast and loose with their customer’s credit card data.

Apparently Dragonfish/Cassava Enterprises (the parent company) passes at least the card holder name and the email address to other gambling sites, this has been confirmed by people who have received spam email for gambling sites to email addresses that are only used for Second Life purposes*.  More worrying is that card holder names are also being passed, this claim was made by someone who received a spam email to the Second Life account used by the account holder yet addressed to the card holder name which was someone who had allowed them to use the card to make payment to Linden Lab*.

Added to this was the extremely poor method of verifying a card holder.  All reputable payment processing organisations use the card verification plugin provided by the credit card company (think “Verified by Visa” and the rest) but not Dragonfish, they send emails with the following text* before they even use the security provided by the card companies. This of course is unnecessary as the card company is best placed to verify the card, so the question arises as to why this effort is being spent on obtaining copies of the card.

(*to view links marked * you need a Second Life account and be logged into the forum.)

Operations Department – Second Life to me
show details 2:48 PM (2 hours ago)

Dear Resident,

I am Paramjit B. from the Operations Department at Cassava Enterprises (Gibraltar) Ltd. I am contacting you with regards to your Linden Lab account with username “(name redacted)“.

As part of our continued efforts to provide confidence and security for all of our members, we will always seek to verify the ownership of any credit cards used to make a deposit. As such your account may experience enhanced security steps at deposit stage, including processing through Verified By Visa or Mastercard Secure.

To process your deposits without this requirement and in order to become a fully verified customer, please send us the following documentation –

-  A photocopy of your credit card ending # 0479 (front & back)
-  A photocopy of your national identity document such as an ID card, Passport or Driver’s License

These documents can be sent to us by you uploading them through the link:

http://secondlife.com/my/account/billing-verification

Please copy and paste the above address directly to your web browser. You will then be prompted to enter your username and password. You will then be guided through a simple process to upload the requested documentation.

Please note that to ensure the security of your documents we have implemented powerful security policies, rules and technical measures to protect the financial security of our Residents. However, please make sure that you block the middle 8 numbers of any credit/debit card uploaded and also block the CVV (3 digit code) on the back of such cards.

If you have any further queries with regards to our requests please review first our Frequently Asked Questions, located on the “Contact Us” tab of the website. Here you will find all the information on why we routinely request documents, how it is possible to send these documents, and the type of documents that we will accept. All these questions and more are answered by typing in the relevant key words to the Frequently Asked Questions search option.

Many thanks for your continued patience and co-operation in this matter.

Regards
Paramjit B.
Payment Operations
Second Life

I did smile wryly at the claim they have “powerful security policies” but then ask you to remove some of the card details and in breach of best practice for financial services, they provide a link to the web page to upload the documents.

Neither Linden Lab nor Dragonfish have ever provided details of their customer data handling procedures.  If you ever send sensitive documents like this to Linden Lab you have no idea what becomes of them, for example;

  • who has access to the data? (apparently everyone by the look of it),
  • if the information is printed out, how is it disposed of?

This is a concern as Linden Lab has had data security breaches in the past which they never advise their customers of.  Those we do know about range from the wholesale breach of the database in 2006 which resulting in everyone being advised to change their password to last year when accounts were compromised but only those affected were notified when they tried to access their account and the doubts (now realised with this Dragonfish leak) about their commitment to protecting their customer data, giving Linden Lab your data is a risky business and on the balance of probabilities, sending them copies of your ID is foolhardy.

It’s been 8 months since full payment options were available to Second Life users.  Apparently Dragonfish are having problems delivering the solution.  If Linden Lab were any one else, the fact that their new supplier of services had effectively stopped some overseas customers paying them would have been a big deal.  Linden Lab appear to be fine with it and apart from reinstating PayPal payments last week after some pressure and bad publicity due to people losing their regions and accounts due to LL not providing a mechanism for their customers to pay them.  This project seems to continue to meander along with a possible release date of this month, yet as usual the Beta deployment isn’t even what would normally be considered Alpha, let alone deployed for customer use due to the sensitive nature of the transactions.

Will I use local payments when it’s finally released?  No.  If I ever have to add new payment details and Dragonfish is the only choice then I won’t be doing it. There’s nothing I need in Second Life that would make me provide my details a site that cannot keep the financial data secure.

How will you know if your data has been compromised?

You can’t really, if you live outside the United States and in particular Europe and have recently used Linden Lab’s local payment option (new accounts apparently were forced to join the beta test for this, for the rest it was “voluntary”), it is very likely that you have had your credit card details compromised.   There will be a couple of indicators that arouse your suspicions.

  • You should have received spam emails from gambling sites.  Although, if you use a provider such as gmail, yahoo or hotmail you may not have received them as the spam filters
  • You may see unusual transactions on your card statements

What you can do

  • Check your spam folder to see if you’ve received any spam emails from gambling sites
  • You should check your card statements, and
  • Consider making a complaint to you local data protection commissioner.

Here is the link to the European Data Protection authorities: http://www.dataprotection.ie/ViewDoc.asp?fn=%2Fdocuments%2Feuropean%2F6f.htm&CatID=37&m=i

Here’s the UK one: http://www.ico.gov.uk/complaints/data_protection.aspx

How do I know if my problem is a data protection problem?

You might have a data protection problem if any of the following apply to you:

  • You have been denied any of your rights, including your right to see the personal information an organisation holds about you.
  • Personal information about you is used, held or disclosed:
    • unfairly
    • for a reason that is not the one it was collected for, or
    • without proper security.
  • Personal information about you is:
    • inadequate, irrelevant or excessive
    • inaccurate or out of date, or
    • kept for longer than is necessary.

I’ve highlighted the relevant reasons for the complaint.

Dragonfish has a UK office, you may like to also lodge a formal complaint with them.

Dragonfish UK

20 Thayer Street
London
UK
W1U 2DD

As always, carefully think about the information you provide to Linden Lab.  The risk of it being accessed by unauthorised people appears to be continuous and real.

Second Life, the Dash Deal and You. Welcome to the virtual Walmart

The cynic in me choked a little more when I finally read the details of the Dash Deal.  For those of you who are blissfully unaware of the term, it’s the latest marketing ploy from Linden Lab to try to make Second Life look popular and to use the social media version of recommendations to snare the unwitting.

The deal is classic marketing for all the wrong reasons.

For a start, it isn’t aimed at the user base in general.  The aim is to get current users to either like it on Facebook or to friend on Twitter – if you don’t want to do either then you miss out.  Bad luck for those who would prefer an email in your inbox or even to join an inworld group and get the group notice.  They do claim there’s a weekly email that will go out as well, but I’m betting it will happen well after the event, as usual only go to a subset of users and probably will say something like..  ”see what you missed??  Give yet more data to Facebook that we don’t even get to see and as a bonus to us, show the rest of the Facebook universe that the 100,000 odd likes we have on our page weren’t actually bought in the same way others buy backlinks for their web sites.”  OK. paraphrasing here but certainly having to like the Facebook page or friend them on twitter has absolutely nothing to do with binding users a little more strongly to the platform and everything to do with cheap marketing and demonstrating just how unsuitable Second Life is for people who like social media. It’s certainly not aimed at those who don’t use the marketplace because of course the deal isn’t available inworld.

The way it works for content creators is simple, in exchange for your item being publicised in this supposed email, on twitter and on Facebook (via a link only, not even a pic by the look of it) you must reduce your price by 50% for the 24hr period as well as write the copy for the ad and provide the pics (with Linden Lab then making any modifications they see fit without your subsequent approval) and on top of the 50% reduction you must give half of each sale price to Linden Lab. The benefit is brand awareness, (in theory) at least 4 times the number of sales you would otherwise have had on the item and possibly some repeat custom later on.  As the businesses who have used Groupon type sites have discovered lately, the last one is rare but they do have people who will continually take advantage of the loss leaders – which means that the marketing is not value for money.

and the really sad thing?  It amply demonstrates that when everything is said and done that Linden Lab’s values are shoddy as ever and they still haven’t learnt basic PR and customer communication.  I’m beyond tired of Linden Lab positioning Second Life as something even less worthy than being the Wal-Mart of virtual worlds. Always cheap, always seeking to exploit its content creators in particular and its userbase in general and always appearing to go out of its way to not deliver anything that we’d recognise as a benefit.  If it goes well? Well, that’s not happened in Second Life. If it’s gone badly? Well, blame the users as that’s what we asked for.  It’s funny that I don’t ever remember asking for each deliverable to be a shoddy piece of shit but there you go, some of us must have.

I despair when I see Linden Lab demonstrating such a lack of understanding of, or confidence in, their product that they can only position Second life as a more immersive You Tube, or dress up your Barbie doll and do lifestyle of the rich and famous in 10 minutes. Linden Lab certainly has become more sophisticated in exploiting its userbase.  It really does leave a sour taste in the mouth.

As a little ray of light though..  Here’s a screenshot of the comments so far.  Of the 33 Likes for the post, 12 of them are liking various comments pointing out how unseemly the Dash Deal is and only one out of the 9 comments is positive.

I bet Linden Lab will be glad when the likes of me finally gives up on Second Life completely.  It must be so irritating having people who remember when there were more usable features and still hold out hope that one day Linden Lab will actually see us as customers to be cherished rather than a resource to be disregarded, except when useful.

What do you want to see in Second Life in two years time?

Our new leader wants to know what we’d like to see in 2 years time

TMJ: We don’t want this to be entirely one-sided. What are we – as users and customers – not asking you about that you’d nevertheless like us to hear?

I will read the comments to this interview, what I would most like to know is this: In 2 years time what would you most like to be doing in Second Life, and how would you like to be doing it? The answers to that question would be very helpful indeed.

 

Here’s mine.

  • Stop using mainland as a test server – spend the money and the time creating a proper test environment
  • Make support actually do what they are supposed to – the frontline chat works adequately but the support tickets processing sucks. Processing tickets may not be sexxxy to your employees but it helps to keep around the people paying their wages.
  • Fix inworld search. Just admit GSA6 was a bad decision and move on.
  • Fix the marketplace. It’s borderline unusable for merchants and customers don’t fare much better. 
  • If you have a policy, actually implement it.  A tough one I know but pretty well every other organisation manages it. 
  • Fix the maturity ratings issues.  If someone only wants to search in one rating they should only see returns that are: 
  1. relevant
  2. on parcels with that rating

currently it does neither for listings or classifieds.

and the only bit of advice I’m going to give…

Understand the difference between social media and virtual worlds.  Second Life has always been cruelly deficient in social media tools – much to its detriment.  The current social media tools out there don’t cut it for what your current customer base want and need.  So, don’t be afraid to look at the current tools and take the best bits to create a version we will use inworld and revisit Avatars United in that light.

How I saved money in Second Life.

At the end of last year I spent some time away from Second Life – almost 4 glorious months in fact.  I did have to go in at least once a week to deal with the store but apart from that nothing.  I discovered that the longer I spent away from it the harder it was to force myself to log in, I was fine once I was in but eager to leave.  During that time I stopped caring about most sl things; search, the marketplace migration, the instability of the platform – even the closure of the business I used for my network vendors had a care factor of virtually zero.   It truly was a beautiful time.  I do enjoy being a virtual goods retailer but Second Life being what it is, everyone needs to come up for air and get some perspective sometimes.

Then just before Christmas I realised just how much I was neglecting it and I thought I should get back into it, so I went back to the workroom and started building.  Since then I’ve surveyed my *cough* empire and was shocked at the reality of how Linden Lab are implementing their objective of streamlining their world.

  • I’ve discovered that search inworld has been optimised once more, in fact they’ve optimised it so much that some of my smaller stores can never be returned in search.  So I’ve taken them out of search, cancelled the classifieds and am in the process of removing them and selling the land.
  • I’ve rediscovered that one of my larger parcels still doesn’t appear in search.  That classified is quite expensive but I’m almost at the stage of pulling the plug on both the parcel listing and the classified. The parcel listing drives traffic more than the classified.  LL won’t refund me for all the money wasted so far and I got tired of live chat telling me to tweak it/wait for the latest update/give it a few more days. 9 months is more than enough time to fix it and they haven’t so I can only assume they don’t want that business.
  • I’m on a version of the rc server code and I’m tired of people IMing me to say that they have an account stuck on the region/haven’t received their purchase from one of my vendors.  I’m also tired of the rolling restarts that seem to be endemic at the moment on that poxy rc.  Do you think I can find out how to get off it?  live help could only suggest I put a ticket in to ask, which of course Linden Lab have promptly ignored.
  • Inworld search is so poorly built that it isn’t even capable of keeping the returns filtered by maturity rating, add that to their inability to get some listings to actually show in search at all and to apply their relevance weightings in a manner that a reasonable person would consider logical. The only thing you can say is that it ticks the fail box.
  • Then there’s the marketplace.  The merchant back end is still at fag packet prototype level and the relevance function is once more embarrassingly bad.  I finally relisted all the items that were corrupted by the migration but now each time I make a change they lose their relevance position and of course don’t have the old xsl data which looks like it is used in the relevance calculation.  

Despite this I spent the last week considering expanding as I’ve run out of prims at the mainstore and need a new full prim region and a couple of homesteads. 

So I did some pros and cons – here’s the list:

Pros

  • I can keep releasing items. 
  • I can make the store more visually attractive and easier for shoppers to find what they are looking for.

Cons

  • I’ll be paying an extra $545 per month on top of the purchase price and there’s no guarantee I’ll see a commensurate increase in sales.  
  • I can’t divide the regions into parcels as smaller regions are penalised in search, so it makes it pointless to try to cleanly target different markets
  • There’s no guarantee Linden Lab won’t stop tinkering with inworld search or the marketplace.  Last year I found out how much of my sales depend on visibility in search and in the marketplace.  I was pretty shocked at the percentage.  The risk of a recurrence of search failing to deliver relevant results is high and the amount of effort required to keep on top of their latest changes via reverse engineering (because God forbid they ever tell us what they’ve done) and then adapt to the change before they change it again is too time consuming for no real return.
  • Concurrency and demand for Lindens is reducing.  Less money and less people means less opportunity for sales.
  • I can’t even be assured that I’ll appear in search.

Now, I really do want to expand, despite the list.  So I went to the land page and there was a button that offered me a human to chat to about it.  

Want Help?

Land specialists can answer
your questions.*

*(Available Wed-Friday 8am-6pm Pacific Time)

As you can see, they’re only available a few days a week but my luck was in as I was looking at the page as these humans were supposedly there.  So I clicked the link, thinking that just maybe the human would say something that might give me the confidence to go ahead and buy – a discount would have been nice but I’ve in SL so long that I know better than that – but I wanted to try – even if they would offer something like actual attention to my tickets and resolution to the search issues I may encounter would have been enough.

Anyway, I clicked on the link and it came back “page not found”.

Sums it up really

So, here’s what I’ve done.

  • I’ve cancelled the parcel listings and the classifieds for the smaller plots that are no longer returned in search. 
  • I’m going to close them and sell the land. I toyed with buying a 1/4 sim on mainland as a sop but the fact they’re all RC is enough to put me off that.
  • I’m not going to expand – Once I can no longer remove prims to make way for the new releases that will be it.

Which means..

  • LL have lost at least $6540 usd plus sinks per year (I was planning on converting the new homesteads to full prims later in the year as part of the growth plan, which would have uppped the overall take – assuming they could do something as simple as upgrading them)
  • I’ve gained many hours in my day as I don’t have to spend all that time setting up the new regions
  • and soon I won’t have to worry about creating anything as there’ll be no room to put it

Pretty well any other B2C outfit would have been all over me at the thought of generating that kind of income, then there’s Linden Lab.  I suppose Linden Lab think they’re creating the new paradigm for self-confessed successful online businesses that in reality are struggling –  Don’t provide service, look amateur, deliver  a shoddy product, pretend the customer doesn’t exist when they ask for help via the support they supposedly pay for and better still, ignore the key drivers for your business and make it as hard as possible for your users to use your service.

Why do they do this?  Are they really so ignorant of the underlying drivers for their world?

Second Life ecommerce leaps to the 21st century. Is it the end of inworld retail as we know it?

From around 2001 when internet shopping was first moving into the mainstream until around 2006, there was a steady drip of press articles talking down internet shopping.  From the (real) fear of fraud to the belief that people always had a desire to see the item before buying, the mainstream media kept shaking their heads as web shopping became more and more popular.   The impact of the emergence of internet shopping is still being felt as some traditional bricks and mortar traders find that their business has effectively moved to the internet and their high street stores have become an overhead that makes them uncompetitive enough to put them out of business.

What has this got to do with virtual worlds and virtual goods shopping?  Rather a lot.

The open endedness of Second Life has meant that people have built what they know.  This is particularly true for retail.  Those who have flourished in Second Life have done so because they’ve taken the basic retail behaviours and adapted to the limitations of the platform.  The key driver (excluding word of mouth) of Second Life retail activity has always been inworld search and when that, combined with the ever present lag, proved to be a poor tool for retail, consumers moved to the blogs and the shopping sites for information.  12 months ago a survey of Xstreet users by Linden Lab showed 75% of people used Xstreet to find items before going inworld to view and or purchase.  A staggering indictment of how unsuitable the inworld search tools were for the preferred shopping behaviours of their customers.

Three months ago Second Life was a mirror of the retail world circa 2001, if you wanted to find something you’d either slog around the grid using search (think of driving around town with the yellow pages) or would use the internet to find a shop then go there to see the range.  

2010 was the year of content creators according to Linden Lab in February.  After they’d released the new viewer, their next step was to concentrate on retail.  It was due to deliver in Q3 2010 and it did.   

With the release of the new shopping portal and the constant issues around inworld search since March, we’ve jumped forward in time to 2010.  Without any current figures, my guess is that the proportion of marketplace browsers to marketplace purchasers has decreased.  From a shoppers perspective this is good and is long overdue and it brings consumer shopping behaviour for virtual goods closer to their real life experiences with sourcing and purchasing.  It’s taken close to two years but the market that Onrez served so well and were  has finally been catered for again and the results are impressive.  

Indications are that the shakeout is about to begin.  With the changes to inworld search and the marketplace, the desire of Linden Lab to force inworld consolidation is mirroring their objective with estate landlords and is finally moving to fruition.  In retail’s case, those with large land holdings will still have their inworld presence and smaller, specialty retailers will move to the web.  The problem for Linden Lab may well be that yet again their view of what is best for Linden Lab doesn’t coincide with what is best for their bottom line. 

We shall see.

I’ll digress for a moment and say that the Second Life Marketplace deployment is the wort software deployment I’ve ever seen in all the years I’ve been involved with IT.  The original design and ideas were spot on as we’re seeing now but the execution, particularly since the termination of Melinda Byerly’s employment, has been astoundingly poor even by Linden Lab’s  low standards.  

The decline of the “passionate and committed”

When Linden Lab use the term “passionate and committed residents” it always seems to come across as a mild insult.  In a way I don’t blame them, there’s a lot of hysteria whenever LL makes a change but a lot of it is of their own making, poorly thought out policies and limited communication that isn’t tailored to those they’re trying to reach is a recipe for triggering the internet dramas we see. LL communication skills have always been poor, they never seem to learn from their past mistakes and then some compound those mistakes by displaying a patronising rudeness to those users of their platform

I could be wrong, as appearances can be deceiving but I doubt it.

What I have noticed down the last couple of years is how those “passionate and committed” residents have scaled back their second lives and their participation on the various LL and non LL foras. The triggers seem to have been either the removal of the particular forum with the introduction of the blog or a particular action taken by LL.  Both inworld and on the web the diversity of approach and opinion is decreasing and the vibrancy is vanishing.

It must make LL relieved that they no longer have a wall of screaming people to deal with. I hope they understand the implications of that silence.

During the last week or so I’ve also seen posts from various content creators saying they are no longer making a living wage from SL and are scaling down their inworld presence as they have to go out into the world and get a “real life” job to put money in the bank account to pay the bills.  On top of that I’ve heard of some long-term inworld creators who have closed down completely.  Dollyrock, Greenies, Rustica come immediately to mind and each has a different trigger.  Greenies was a pure business decision as they no longer need what the SL platform offers, Dollyrock because of the lack of income (as I understand it, someone correct me if I’m wrong) and Rustica because of the rampant content theft. It amply demonstrates there are many different “final straws” and each of them reflects issues that the user base have been asking LL to deal with for years.

It’s tiring surviving Linden Lab and Second Life. Between the anti social behaviour of some of our fellow users, the strangling of inworld businesses by LL through their policy of monetising everything and cutting off most avenues of free advertising on LL web property, through to the poor quality of the platform and their releases and the lack of support from LL at all levels to allow us to flourish, it’s just one thing after another.  Just once I’d like a rolling restart to not give me grief for the next few days as I have to deal with customer issues or have the release be such poor quality that I have to spend more time than on I should having to work out just what is wrong and how I can work around it. The most glaring example of that is the search tool that was released on May 3 and is still adversely impacting businesses because it’s not fit for purpose.  Region owners are downsizing yet LL doesn’t seem to give remediating search any kind of priority.

Even the deceit that LL expects us to indulge in with them is soul sapping.  They blogged the arrival of the new marketplace despite it obviously not being fit for purpose and their excuse was that it was the only way to reach all content creators who have been migrated.  Pity that each merchant on Xstreet is linked to their SL account with an email address – obviously LL still haven’t heard of using technology effectively, as getting the list of creators who were migrated and then extracting their email address and sending them a missive was just too high tech for them or was it they truly did think the site was fit for purpose – despite it being supposedly beta and felt comfortable with drawing shoppers attention to it? I suspect the latter with the excuse they gave just drivel to appease those who don’t pay too much attention and assume that everything LL says must be true.

The replacement Xstreet site brought it all home to me just how many people just don’t care anymore and how many people have gone – the number of usual suspects in the forums reviewing the new site and commenting on it is a lot less than I would have expected.  There’s a lot of faces missing.  

Before the XSL migration started I made a decision not to put too much time into preparing for it, as past performance has indicated that it would be poorly thought out and badly implemented.  I wasn’t wrong.  I’ve had a look and seen what they seem to be moving towards and it will look good eventually but I’m not putting any time into it until the final main functional releases go in and that’s despite it looking like that will be well after Xstreet has been retired and the new market place is fully active.  After spending weeks taking out all my word links to related items from the listings and replacing them with images to help the search tool as they requested at the end of last year, they then removed image functionality in May without any replacement offered and I didn’t bother going in and fixing the mess it left.  My listings have ported over to the new site and are in desperate need of fixing but because of the way they’ve set up the feed from the old site to the new I can’t fix them so they look good on both sites and have them stay looking good for both.  I make 20-30% of my income from Xstreet and normally it would have commanded a lot more attention from me as I try to optimise my listings for visual appeal.  Now I don’t care.  

May generated the worst turnover for me since around February 2009 – it wiped out inworld sales from 2 brands and a 3rd brands satellite shop because of the search issues. June didn’t see a recovery of either of those brands but then how can they when the parcels don’t make it into the search returns and/or the classifieds vanish from the classifieds search? I’m hoping July won’t be a repeat of May but with real life financial constraints on people and search still so poor it’s hard to be optimistic and without a hope of return it’s hard to invest the time needed to manage a Second Life retail presence.

I know I’ve stopped buying in services for the content I create (scripting, sculpts, textures) as all I’m doing is reusing existing components to finish off my backlog of unfinished content and I know a lot of businesses that have closed down in the last 3 months who obviously aren’t buying in services or components any more and I’m seeing a marked drop in sales of my higher priced items (we won’t talk about the couple of brands that are almost dead now – grr) and I can’t believe I’m the only one who is seeing this.

LL have never considered our time and effort valuable when they’ve put in new policies or features.  The lack of respect is astounding until you realise that they seem to be working in the mindset that we’ll take whatever rubbish they dish out.  Back in 2006/7 and possibly 2008 that was probably true, certainly there were enough new users to hide the old leaving.  Now I think that assumption is somewhat problematical.  Each sub optimal policy or release seems to loosen the ties that bind us to this platform. Put the declining income into the mix that is a deliberate result of Linden Lab policies, standards and behaviours and it doesn’t look good.

At the moment I still go through the motions in here but when the day comes that my income no longer covers tier I won’t be doing anything more than shutting up shop.  I’m beyond trying to come up with ways to maintain my turnover or at least trying to manage the decline and I gave up the idea of ever increasing it again months ago.  In short, despite still being extremely profitable on turnover per prim it’s not longer worth any real effort as LL, their policies and platform make it a waste of substantial time and effort.

I am really looking forward to the Q2 2010 figures.  They should be out soon.

Fixing the problems of Second Life: a hill too high to climb?

The platform design has been showing its limitations since 2006 and  I believe a lot of the platform issues are directly related to the system design.  From concurrency issues to the basic user tools, most things are hampered by the design.  This isn’t going to change as the time for a redesign has passed and I do not believe there is the desire nor the money to undertake it.  So we end up with a sub-optimal platform held together by various fixes that may or may not work.  I stopped bringing people into SL back in 2008 as I found that virtually everything I had to teach them to do required a work around or an explanation of what should happen against what actually happens. It directly impacted on their ease of assimilation into this world of ours – amongst other things.

So, here we are at the latest birthday celebrations for SL.  Officially 7 years old and still with us along with the flaws.  Every year since 2007 the SL birthday celebrations have suffered from the same thing – lag and the inability of the regions to hold more than what is really a token number of people.  Philip Linden stepped out in public and made a speech there which is what triggered this post.

Phil, in his introduction to his speech at SL7B said the following:

Philip Linden: Okay everyone! I realize not that everyone there can hear me and I’m sorry for that, but I’ve got until 11:30 this morning and then I’ve got a drop-off at summer school to do, so I absolutely have to leave. So I just wanted to get started and again, I’m sure somebody will — maybe if we’re lucky here — will do the favor of recording and translating me. I can’t type as quickly as I can talk, so I’m not going to try to.

Two years in and they still don’t have a stable voice system and they persist in using it despite the fact it is sub optimal – just like they insist on using voice for resident meetings when they know that not everyone uses it, it doesn’t work well and there’ll be no readily available transcript. The cavalier attitude towards the userbase can be summed up in this speech.  Despite the problems of the last week and the lack of confidence in the future of the platform, the Chairman of the Board didn’t spend a lot of time on thinking about what he wanted to say to his customers.  My personal preference is for text inworld and in this case a carefully worded speech designed to boost confidence should have been a must – copying and pasting it in would have been a lot quicker and Phil would have ensured that everyone could see it and it would be verbatim, rather than a transcription that may be prone to errors.  Voice has failed senior management on so many public occasions yet somehow they don’t see it as a priority to fix – unless of course the platform is so hampered that there is no fix.

He then went on to laud the achievements of the SL platform:

You know, you might jump up and say, “Hey Philip, of course there’s so many things you could’ve easily done differently that in these last 10 years that would’ve made things better — or executed better — but you know, changing history has the risk that you might have done something that broke everything in some way, and I wouldn’t toy with that. I think what we’ve achieved here is a magnificent accomplishment together — all of us, the Lindens, the Residents, the Lindens that aren’t with us anymore — we’ve all worked together to build something just incredible. And I wouldn’t even take any chance at anything that might mess it up, it’s unbelievable what we’ve achieved.

I was thinking about this — what to say today and what to talk about — and I had a thought. I wanna try something. I wanna read you guys just a quick list that I made this morning, so bear with me and let me read you a list of stuff here:

Our financial fraud detection systems; the systems we use to transfer assets from the Teen Grid; the central databases; our dark fiber backbone; our asset servers which have about 450 terabytes of data; the 40,000 simulator cores in the system; the group chat system; the LindeX Market placement and fulfillment systems; the physics core; the visual rendering system; the scripting engines; the ability to transfer and move land; the region conductor that manages all the sims coming online; the map servers; the inventory servers; the client UI; the content takedown tools; the monetary policy, processes and systems we use; the customer support tools; the Department of Public Works; our international payment systems; our backup systems; Linden Homes; the Welcome Islands; the Infohubs; the grid monitoring tools; the localization systems; the private regions; our land auction systems; forums; search appliances; the Support Portal; metrics dashboards; our Phoenix, Dallas, and Washington, D.C. data centers; our 3rd-party Viewer directory, open source repositories and programs, and our internal build systems. 

From a customer perspective my response to this list of achievements is this: The asset servers constantly have problems and customers still regularly lose or have items corrupted, group chat has suffered for years from overload and lag, mono has created more problems than intended that haven’t been resolved yet, the new client UI has been a flop, the content takedown tools may be nice but the human interaction needed to use them isn’t working that well as stolen content is left inworld long after being reported and in breach of the (as I understand it) 24 hour takedown timeframe specified for DMCAs, the search appliance is so defective it’s not fit for purpose, the support portal may now look glossy but the support staff can’t resolve most problems and make you file a ticket that is then ignored for weeks at a time.  

Tell me again how these have improved the user experience?  The LL retort will probably be that the last year was spent on stabilising the infrastructure. Sounds good until you ask yourself what everyone else in the company was doing.

On top of this the platform is showing its age.  I don’t know if the heralded mesh import functionality is going to make it look more sleek but it’s a step in the right direction for visual appeal.  What we don’t know is how it will impact on the rest of the platform and the general usability.  Sculpties allowed for more natural builds but they come at a price – viewer lag. What overhead mesh will bring is still to be determined.

Yet it doesn’t fix the problems with the infrastructure.  Group numbers are too limited for a social platform and the design means it can’t be easily solved and there’s the issues around lack of functionality to manage the groups and roles, TPing is still an issue, the items lost is an issue, voice is problematical, the issues around the search appliance can’t be easily fixed because of the way the data relating to regions and picks and classifieds are stored – which has been causing problems since at least 2007, let alone trying to modify the appliance to use the data structures used in SL.

On top of that, quick wins like incorporating some of the third-party viewer functions (double-click TP, doubling the attachment points, temp uploads of textures, previewing animations on the avatar, easier searching in the inventory, the inventory worn items tab, built-in radar and AO) have not been adopted.

Then there’s the question of whose user experience they’re trying to improve which brings us back to the old discussions of augmentalists versus immersionists.  Will Linden Lab ever admit that these are two distinct groups and forcing the immersionists to change won’t work and the augmentalists won’t stay as it is currently?  I think there’s room for both but it will take careful management of the delivery of the tools to attract the augmentalists without impacting on the immersionists – who are the people keeping them financially afloat. They’ve not demonstrated the subtlety of thought to give me confidence they could achieve it.

One thing is certain, the delays between identifying a problem and providing a workable solution has to decrease.  4 years since user retention and the UI became an issue it still hasn’t been resolved and it was only this year that the initial concrete steps were released. Windlight was never fully deployed, mono is still an issue.  At the snail’s pace LL responds to issues that directly affect the experience I fully expect them to still be issues when SL finally closes its doors, as I don’t see the *cough* restructure optimising the delivery of the fixes.  It may have focussed the minds of those who are left but the organisational management systems are either non-existent or so defective that improving the efficiency and effectiveness of delivery won’t be an outcome.   I’ll add this link for those of you who need proof that LL are just not good at things like prioritisation or urgency  Ever wonder really about the ‘most hated bugs’ on the Second Life JIRA and how they are doing? | KessKreations.  

So is it one hill too many?  While the platform is the major hurdle to delivering new and exicting content and features I think so.  That’s not to say that it can’t be optimised to at least improve retention rates for existing and new users and stimulate activity but the glory days are over.

And Phil, we haven’t built this together – LL has openly despised its user base and told us to move aside.  Linden Lab may have provided the platform and then made it as unstable as it could through poor business practices but despite you we’ve built this world. LL may have tried to cash in on our imagination, creativity and time but what is here is still ours – we’ve made it and we can take it back and as you can see that’s just what we’re doing.  Don’t go blaming us for your ineptitude by claiming your failure is a joint effort.

Before you shrug and move on gentle reader, here’s a few quotes from two educators blogs and how their students react to SL.  These should be the natural customer base since they’ve been brought up on computer games and are computer literate – yet as you’ll read they’re rejecting SL as an entertainment platform of choice.  I don’t think their reasons are much more different to those of the other 93% of people who have tried Second Life and abandoned it.

~~~~~~~~~~~~~~

MixedRealities :: Virtual worlds crisis develops into virtual currency upheaval

Second Life is more than just another social network. It is an immersive space and the users (actually ‘residents’) are emotionally attached to that world. As I wrote in some other post, the depth of that engagement and the serendipity of the encounters are both a strong and a weak point.

A strong point, because who would be against depth of engagement or against the many possibilities of meeting fascinating people from all over the planet?
A weak point however, because becoming a resident is like becoming an immigrant: you partially leave the people you know and you start an adventure, discovering new people, new venues and even new jobs. That sounds great, but for many people it is more than they wish to handle, and they prefer to stick to the people they do know already, using networks such as Facebook to enhance contacts they basically already have.
That’s a structural dimension which cannot be solved by yet another viewer. Maybe an integration in browsers or in social networks such as Facebook would help, but the fact remains that engaging yourself in an immersive user-generated world will probably change your life, and that’s not what most people are waiting for.
This does not mean that there is no future for user-generated open-ended virtual worlds. As long as you have a loyal and intensely creative community, the project can go on. New platforms such as browsers, mobile devices and tablets can help to bring in more people in the virtual worlds space. Let’s not forget that a lot of what is happening is based on what the users create themselves, and open source developments such as OpenSim become even more strategically important.

and from the comments

…..

You state something I see every time I teach a class with SL, “the fact remains that engaging yourself in an immersive user-generated world will probably change your life, and that’s not what most people are waiting for.” My students end up enjoying the experience, but they don’t return to SL after the class ends. They prefer augmented experiences, not immersive ones.

Has the Lab ever considered what the human cost would be if some of the renters I describe–often with virtual partners, romances, etc.–lose their sandbox? I’m an educator and can build simulations elsewhere.

It’s so easy to make fun of SL‘s most dedicated fans, but I worry about them if LL shuts its doors.

 

What?s going on at Linden Lab? Virtual Education

What is it that we, especially those in education, have been asking for years to be a priority? Ease of use . . . this is the holy grail of the SL platform. Here we are seven years down the road from the official launch of the platform and ease of use is still an issue. The controls for avatar navigation, chat, and content creation have changed very little over the years. As a matter of fact, with the numbers of students I’ve run through SL over the past four years, the most frequent comments are usually on how “clumsy” the controls are, how “dated” the look is, how “difficult” everything is to do, and how “slow” everything is in SL. And one of the biggest complaints out of the teachers has been how “unreliable” the platform is when they’ve planned a lesson in SL (maintenance and downtime). It seems that the teachers are more enamored with SL than their own students are.

The Economic Truth of Earning Income in Second Life

 For most of Second Life’s existence, Linden Lab has pushed the idea of users of the service being able to make money from their labours. This line is apparently being pushed again from the appearance of articles extolling the financial opportunities in Second Life[1].

Linden Lab benefits directly by the various fees and costs imposed on transferring money in and out of Second Life, the cost of subscriptions and tier.  They also indirectly benefit from their customer base, for without the imagination and hard work of their customers Second Life would be a sterile, barren ground with minimal attractions for the casual consumer.  As one of the few virtual worlds to have become financially successful they have discovered a business model where not only do their customers pay them in many different ways to be able to create and sell their wares for the “fun” of a minimal return but Linden Lab also use the products created and the supposed financial success of these people as the basis of their marketing to attract more people to use the service. 

So, in these economic times the chance to make money becomes more of a selling point to some than the entertainment aspects of the game. This is not a bad thing in itself, as one of the strengths of Second Life is the appeal it has to many differing interests. Strictly speaking, you can make money from Second Life, the chance of it being anything approaching a decent return for the labour, time and skills learning time invested is another matter all together. 

For the purpose of this analysis I’m assuming that people who read these promotional articles infer that Second Life can provide a usable real life USD income and I’m using US figures for the comparison.

The current US federal minimum wage is $7.25 ph[2].  Assuming a 40 hour week over a 12 month period this averages $1256.66 per month.  Of the economically active in the US the number of people earning $100,000 or more is 13,215,000 or 6.24%[3].

Second life is different in that in the US 68% of adults earn an income[4]. In comparison, the number of unique users logged in during the 30 days preceding 1 Mar 2010 was 1,083,856[5]. Of those, 68948 or 6.36% of people earned 1L or more of income[6].  Obviously Second Life is primarily an entertainment platform and so the need to generate income is not the imperative it is outside Second Life and the primary focus of income generation is to service the various entertainment needs of the customers of the service[i].

In February 2010, 68948 people had a Positive Monthly Linden Flow (PMLF)[ii].  As the chart below shows, only 1.64% earned approximately the minimum wage or above.

  Total Unique Users with PMLF  Number of Unique Users with PMLF and earning over $1,000 USD per month  % of total PMLF 
Sep-09 66805 1201 1.79
Oct-09 68608 1269 1.84
Nov-09 66815 1197 1.79
Dec-09 69633 1258 1.80
Jan-10 72137 1314 1.82
Feb-10 68948 1136 1.64

And only 25 people earn more than $100,000 per annum ($8,333 per month), which is 0.0036% of all those with a PMLF, compare that to the figure of 6.24% mentioned earlier for those in the physical US economy.

Looking at the figures again, a consistent 83% of those with a PMLF earn less than $50 per month.  This figure rises to 89% when increasing the threshold to $100 per month.

  Total Unique Users with PMLF  Number of Unique Users with PMLF and earning under $50 USD per month  % of total PMLF 
Sep-09 66805 55816 83.55
Oct-09 68608 57422 83.69
Nov-09 66815 55812 83.53
Dec-09 69633 58490 83.99
Jan-09 72137 60633 84.05
Feb-09 68948 57549 83.46

These figures are gross they do not include any expenditure required to maintain the Second Life presence required to generate this income[iii].

The conclusion so starkly drawn is that there is truth in the statement that you can earn money in Second Life but the chances of it being even a partial income replacement is significantly smaller than participating in a real economy and the need for you to spend more than 40 hours a week to do so is extremely likely.

As always – if it looks too good to be true, it usually is.  As a rule of thumb in Second Life, the only person who financially benefits is Linden Lab.  Don’t be fooled by the marketing.


[1] washingtonpost.com

Second Life Financials/Future, VLENZ No 164, March 08, 2010 Virtual Life Education New Zealand

 [2] US Dept of Labour http://www.dol.gov/dol/topic/wages/minimumwage.htm

[3] Wikipedia http://en.wikipedia.org/wiki/Personal_income_in_the_United_States

[4] US Bureau of Labor statistics Mar 5 2010    http://www.bls.gov/news.release/empsit.nr0.htm

[5]  logged in users:  LL data http://s3.amazonaws.com/static-secondlife-com/reports/marketplace_stats/2010-03-01/logged_in_users.xls

[6]  in world business profits: LL data http://s3.amazonaws.com/static-secondlife-com/reports/marketplace_stats/2010-03-08/in_world_business_profits.xls


[i] LL does not identify the types of income received by those with a PMLF.  Looking at the range of income generating activities, the assumption is that this group will include amongst others; gamblers, adult personal service providers, consumer retail, content component generation and sales (subcontractors hired to produce bespoke scripts or other build components and those component makers of textures, scripts and sculpts who sell premade packs), currency traders, rental land owners and land traders.

 [ii] A definition of how PMLF is derived is not provided by Linden Lab.  Due to the breakdown of income data I believe it is the income received by the account during the month rather than from transfer from Lindens to USD or paypal withdrawals.  However this is calculated, it does not account for any account subscription or land costs paid directly to LL in USD nor does it include any USD or Linden payments to private landlords.

[iii] Anecdotal evidence suggests that the majority of those with a PMLF do not make a return for their labour.  For most customers it subsidises, or just covers, their tier payments.

What price to recommend Second Life to others?

Linden Lab have begun their (extremely) low key advertising in an attempt to increase their userbase.  In the last 24 hours I’ve seen the new YouTube ad

and now I’ve just seen the Winterfest push.

Want to win 100,000L?  That’s around $400USD.  They’re giving that away each week during December. There’s a catch though, you have to find some poor soul who has never had an account and get them to not only sign up but log in..  

Between November 25th and December 31st, for each new person you successfully invite into Second Life using the form below, you’ll earn one chance to win the weekly drawing for a L$100,000 prize.

and the fine print (which they conveniently forget to mention in the blurb above) is that you don’t even get the Lindens.  It’s to be spent on Xstreet SL..  Which means that they manage to claw at least 5% back in commissions paid by the merchants that you bought from.

Very clever indeed.

Even if they were going to deposit the money straight into paypal I wouldn’t recommend SL to anyone.  I stopped bringing people in 18 months ago because of my disenchantment with the poor quality of SL and the behaviour of LL.  These days I don’t even admit to using Second Life to anyone I meet.  It’s become my shameful secret.

I’m sure there are others who will recommend, either because they still have that dewy eyed feeling or because $400 USD is a lot of money.  However, I value my credibility more. If I won’t recommend it for free then I certainly won’t recommend it for money.

Follow

Get every new post delivered to your Inbox.