An L$ millionaire in the making
It’s been a while since I last had time to write. Quite a lot happened in the meantime too.
I bought some more land and put some houses on it. They got rented out quite fast too.
We had quite a few payments coming in, which is a good thing considering we spend quite a fair amount on the new land and by the end of yesterday my balance said L$ 16582.
I knew this day would come, since I started this blog the line in the chart only went up. I had to invest about L$5500 though. So this is the first drop in the chart and I expect it not to be the only one. Luckily I had some payments coming in from sales and rent, so the drop isn’t too steep. The L$5500 investment made back L$349 already. Hopefully, I can expect more payments coming in soon from this particular investment.
The other new house has a tenant too now. So that means we have about L$15,000 coming in monthly from renting out houses only. I’m pretty pleased with that to be honest.
Yesterday 2 people picked up the new suit I made inWorld and like most weekends sales were good again, not only inWorld but on xstreetsl too.
After a couple of sales, receiving rent here and there and splitting 50/50 with my girlfriend my balance was L$18,319 by the end of yesterday.
I didn’t had time the last few days to write about my progress but in the meantime I made a few L$. By the end of yesterday my L$ balance was L$14,661. So my mission is 1.4661% completed now.
One of the two new houses got rented out, collected rent from some other tenants and made a few sales. The other new house is still on the market. Hopefully it will get rented out soon.
I tried the class I was talking about last time. Well,.. I did go to the class but it was too basic and I got bored really fast. I think I left in about 10 minutes or so. It soon became pretty clear I wouldn’t learn anything I didn’t know yet.
Also I found the time to take pictures of the new suit and while I was busy taking pictures I also took pictures of the other suits I created. I listed the suit on xstreetsl and updated the pictures of the other suits. It paid of too. Somebody who works for another designer also has his own mall. He asked if I would sell those suits wholesale and since I agreed he decided to buy 8 suits.
Yesterday was my girlfriends and mine first ‘birthday’ in SL. So we are in SL for one year exactly now.
Interview with Stroker Serpentine
Strokerz Toyz is one of the leading brands in the adult novelties and furniture market. The big name behind this company is Stroker Serpentine. In 2007 Stroker finished creating the Amsterdam sim and sold it for a whooping $50,000 [yes,..USD].
On the 8th of November 2003 Mr. Serpentine must have been a proper fresh newbie like all of us once were. Somewhere along the line he went from being that proper fresh newbie to being a major big fish in Second Life.
A few days ago he agreed to do an interview with me. Obviously, what I would like know most is: “What do you do? How do you do it? How can I do that too?” but you can’t expect someone to answer those questions. Don’t worry though, there are plenty other questions I would like to ask this great pioneer and visionary.
Me: Thanks for agreeing to do this interview. So,… why is it that everything you touch turns into gold?
Stroker Serpentine: I have been very fortunate in Second Life. However, there have been many disappointing ventures as well. Like, for instance, spending considerable resources to develop a replica of Las Vegas just as gambling is outlawed in SL. Timing is everything.
I come from a contracting background in real life. Early on I developed relationships that are still very fulfilling many years later. I attribute what success I have had to the ability to identify and combine the talents of many. The trick is to keep them from orbiting each other. Stroker is simply the iconic representation of that team approach.
Me: Is it true you created the ever first sex bed in Second Life and how did you come up with that brilliant idea? Did you realise right away you were holding gold or didn’t that happen till after you saw your items flying of the shelves?
Stroker Serpentine: It’s quite true. There is an interesting story behind that. We first had to create the “poseball”. Many of us had come from another MMOG that was adult oriented. They used poseballs shaped like hearts to animate avatars. So the concept was not original. Christopher Omega, Pyske Phaeton and Jeff Linden all contributed to that first innovation.
Late in 2003 the popular method of animation override in Second Life was an opaque cube that you sat upon. I found them clunky and not very conducive to intimacy. I took the compilation of poseball sets we had created and linked them to a bed in various positions. I still get a laugh when I pull it out of my inventory. It looks like a mattress with the measles. That was in February of 2004.
In June of 2004, the Lindens gave us the capability to upload custom animations. We then set out to develop the first menu-driven animation system to address “ball sprawl”. The result was “SexGen”. Briggi Bard was the genius behind the engine. I created most of the animations and did the marketing. The rest they say is SL history.
Me: There must have been a time before you were as successful as you are today. What did you do in SL before you were this successful? Did you have other SL companies before Stroker Toyz? Could you perhaps have been spotted on any camping chairs in your early days?
Stroker Serpentine: I learned to wrangle prims the very first week. I knew then that there was a value in creation. My first attempt at virtual retail was with sunglasses. I realized early on that marketing was critical in such an expansive environment. I placed kiosks everywhere anyone would let me and I gave away demos at events. I had learned at an early age (My mother was a Hallmark executive) that branding was important. I called my creations “Strobans”. I still wear a pair to this day as a good luck charm.
I have never quite understood the efficacy of camping. In other virtual worlds prior to my involvement in Second Life, I would see these parked avatars. I would approach them and try to converse with them to no avail. Finally, someone enlightened me. Granted, not everyone has an entrepreneurial heart. I felt my time could be better spent amassing inventory and creating a presence. I have been trading in virtual world assets since the late 90’s. Second Life sparked the creativity to produce my own designs instead of purchasing other’s inventories.
I attribute my marketing skills to my mother. Virtual worlds are merely micro-economies that require the same skill set as any meatspace enterprise. Customer Service, Variety and Marketing are not to be overlooked just because the content is different. The old saying “The customer is always right” is just as applicable here as it is on Madison Avenue. That doesn’t mean you have to be a doormat however.
Me: I’d like to ask you a RL question if you don’t mind. It’s not a secret you used to be a plumbing contractor in RL. At some point you decided to give up your day job to focus more on your ‘virtual’ business. Wasn’t that scary? Who was the first you told and how crazy did they think you were?
Stroker Serpentine: The first people I told were my family. The general response was supportive. The comment “It’s about time you got paid for spending so much time online” comes to mind. I was working two jobs, both full time and getting very little sleep. My caffeine intake was reaching epic proportions. I did a LOT of soul searching before I subjected my family to the uncertainty of content creation as a business model.
Second Life was a lot different then (2004-2007). It was easier to make a big splash in a little pond. The initial notoriety was short lived. I knew that there was a limit to market share and that competition would be stiff (pun). I re-doubled our marketing and ramped up new designs. We expanded into motion capture in 2008. Admittedly, we do very little MoCap for Second Life. The limitations on file size are the main reason. SL gave me the vision to explore new technologies.
I would honestly say that I am more concerned now about the future than I was in the beginning. There is a worldwide recession in full force. We are always looking for alternative business models and opportunities. We plan to launch our own Virtual World some time in 2010. Stay tuned!
Me: You ran RL and ‘virtual’ companies. You are at this point now that your virtual companies merged into RL companies. Is their a difference in how to run a virtual company compared to a RL company? Or is it fairly similar?
Stroker Serpentine: There is absolutely a difference. Word of mouth advertising travels at break-neck speed in Second Life. It is a double-edged sword however. If you release a product that is buggy or with incomplete documentation you may not ever know the true impact until it has been widely distributed. Plus, we are at the mercy of Linden Lab and their platform. We are currently trying to recover from a script blacklisting that broke tens of thousands of our products.
As with any business there is a learning curve. You have to “roll with the punches” if you plan to survive. Digital content is particularly difficult in that it can be readily duplicated. We have taken a resolute stance against IP Piracy. But with every setback there are opportunities. Tenacity is the key.
Me: A business is always evolving. It’s an on going event of taking it to the next level. What do you do to keep taking it to the next level and to stay ahead of any competitors?
Stroker Serpentine: We listen a lot. We attend various in-world events and new resident areas and do informal surveys. We work with other platform developers who intend to incorporate user-generated content. Our business is primarily adult in nature so we attend trade shows and conferences that are within our genre. I try to never underestimate the value of research and education.
Me: The Amsterdam sim was obviously a great success for you. On your Youtube channel I noticed you either were building or finished building the Bangkok Island sim. It’s not something I would immediately expect from you but more likely from land barons and lately also from Linden Lab. The plots in sims Linden Lab recently build like Nautilus and Blake Sea change hand for very high prices. In real life successful and wealthy people often have their fair share in real estate, even if their core business is something else. Was creating the Amsterdam sim and Bangkok Island and thereby going into the real estate market a logical step for a wealthy tycoon like you, just as it is in RL? Or would you say you being wealthy and doing real estate projects are non-related?
Stroker Serpentine: We have always approached virtual land development from a marketing perspective. I have no desire to enter the virtual real estate market. It is too contingent on policies set by Linden Lab in my opinion. The recent adult changes and homestead sim pricing are good examples. Amsterdam and Bangkok were designed to be showcases for adult content. I do love the creative aspects of building out an entire sim however, but once it is completed my impatience requires me to seek other ventures.
There have been many successful land developers in Second Life. It is a very lucrative business model. However, if Linden Lab were to close shop tomorrow, or change their core business model, many would be left holding their modems. I still have my animation library and programming skills. History is the best teacher.
Me: Thank you so much for your time to do this interview Mr. Serpentine. Finally, do you perhaps have a tip for anyone who is trying to become an L$ millionaire?
Stroker Serpentine: Thank you for including me in your article! Actually, I have several tips!
My most valuable piece of advice would be to stay flexible. One thing I have learned over the years (often painfully) it is to always have a “Plan B”. Have someone close who challenges your assumptions. Surround yourself with mentors.
Certainly; I could always go back to contracting in real life. I still see a plethora of opportunities in Second Life however. Sculpted design and Role Playing Games are but two examples. Look forward to “Second Life v2”.
As Second Life grows there will be an increasing need for communicating effectively across the expansive grid. Whether it is marketing or group discussion, we are at the end of the day, a social network. Look for better ways to communicate.
Many are lulled into thinking that “All you have to do is build a better mousetrap”. Create something where nothing existed before. We have the tools laid out before us. Capitalize on the weaknesses and exploit the strengths of Second Life.
Michael Gerber, the author of “The E-Myth Revisited” eloquently wrote: “The entrepreneur builds an enterprise; the technician builds a job.”
Build that enterprise!
And lastly, play with children. They teach you humility and curiosity.
Yesterday wasn’t too bad. Made a few sales here and there and by the end of the day sales had totalled L$1041 bringing my L$ balance to L$9702.
I spend some time furnishing the houses on the newly acquired land and hopefully these babies will get rented out soon.
Also, I finished up this outfit I was working on. It was almost finished for quite a while, I just never really finished it. Now I completely finished it but I didn’t had the time yet to take pictures and put it for sale. Hopefully I will get around to do that today. I also saw there is an interesting class today about making clothes and since I taught making clothes myself and never went to a similar class before, I might pop in for a second to see if I can pick up some interesting stuff. You never know…
Oh yea,.. remember the tenant who was past due with his rent and somebody else paid the rent box before he did? Well I spoke to him yesterday. Turns out he actually referred the new tenant. Just another example of good customer service paying off.
Since I bought some land friday I was left with only L$5 in my account. Luckily the weekends are quite good for business in Second Life. So I made a few sales on xstreetsl and quite a few sales inworld.
Also one tenants was past due with his rent and eventhough I did IM him somebody else paid the rentbox for two weeks before he did. So I checked in “group info” to see if the former tenant already logged in after I send him the IM and saw that he did. So it’s safe to assume he doesn’t want the house anymore.
Nevertheless, since I just bought some oceanfront land I send the former tenant an IM where I offer him I’ll gladly reserve one of the new houses I build on the new land. So far no response..
Inworld sales and sales on xstreetsl on friday took me from L$5 to L$1059. Saturday was really good and thanks to the new tenant and quite a lot more sales my balance stated L$5226 by the end of the day. I’m extremely pleased with so many sales even for a saturday. Sundays I never know what to expect, I had very good sundays and very bad sundays. Luckily this sunday turned out to be a good sunday and by the end of the day I’m the proud owner of L$8671. Not bad considering I started the weekend with only L$5. I’m very very pleased.
Ok, since I’m almost a year in second life now I’ve already acquired some assets and have a few sources of income. So this is my starting point;
Since my girlfriend and I split everything 50/50, we actually have to make atlesast L$ 2,000,000. Probably more because from time to time we’ll have to invest.
The first L$15,000 we make we won’t have to split, because when I bought the land yesterday my girlfriend wasn’t online so she couldn’t chip in.
That’s about it really. Now you know where I start from and you can follow the rest in the following blogs.
