But although Second Life success stories have popped up in the form of (un)real estate tycoons and content developers, making real money has remained firmly in the hands of these virtual entrepreneurs while real life businesses struggle to keep up with the new rules of virtual shop.
This is none the truer for the small population of Australian businesses plying their trade in the Second Life world, but it's an area that David Holloway, creator of an online Second Life news portal and gathering place for Australian businesses, , sees huge potential.
"Second Life offers a unique opportunity for business because it blends the virtual with the real," said Holloway. "It will never replace face-to-face interaction but it can serve as an adjunct with its 360-degree virtual world experience that makes online interaction more personal."
Although Holloway's news portal has only been up and running since the start of January, the site has attracted a regular crowd of Australian Second Life users and even the interest of the ABC who are looking to establish an online presence in the virtual world.
In several postings on the , ABC science journalist, Abigail Thomas has expressed the ABC's intention to create "a meaningful virtual space within Second Life for Australians to come to share their creations, meet others and find fun, interesting and inspiring works and activities."
"Our [ABC] objective is to develop a sense of Australian community based around content, creativity and innovation for Australian and international visitors to the ABC island," reads one of her posts.
Working in conjunction with the Australian Film, Television and Radio School (AFTRS), the ABC plans to host digital assets and stream content to showcase local productions and create an authentic Australian environment within Second Life.
"Creating an Australian space will have nothing but positive affects for Australian business," said Holloway. "It will give Australians a place to gather, grow and most importantly, to get exposure from both home and abroad for their businesses."
Although Second Life's registered population tops out at 2.6 million users, regular players (those who log on everyday) only represent 10 per cent of the total. Nevertheless, these residents have created a thriving virtual economy in which about US$650,000 is spent per day. With that figure in mind, it's with little surprise that uber companies such as Toyota, Nike, Sony BMG and Adidas, to name a few, have jumped aboard the Second Life ship.
But making the transition from selling real life goods in real life to selling real life goods in a virtual environment brings a whole new set of challenges, said Holloway.
"Selling virtual content is easy; the real challenge lies in creating new and innovative business strategies that bridge the divide between reality and virtual reality. For example, Toyota has been quite successful with the release of its new Scion for virtual test drives in the Second Life world, which has apparently led to click through queries for them," he said.
But more importantly, Holloway said companies have to be aware of the impact their branding will have on the Second Life community as a whole.
"Any company that enters Second life will have to tread carefully because there is a natural aversion to corporations coming in and flooding participants with marketing junk. Plastering advertisements throughout the world will only be met with angst," he said.
But once companies pass the hurdles of Second Life's community needs, Holloway says, establishing an online presence is easy, especially if you're a large multinational with money to spare. On the other hand, for smaller businesses, in particular Australian ones, the key for success and recognition is community.
"What's needed for business to thrive in Second Life is community," he said. "There's a lot of potential for Australian businesses, granted they come together to create a collective Australian community. And with the ABC and AFTRS on board, it looks like we're heading in the right direction."