Second Life - Economy

Economy

Second Life has an internal economy and internal currency, the Linden dollar (L$). L$ can be used to buy, sell, rent or trade land or goods and services with other users. Virtual goods include buildings, vehicles, devices of all kinds, animations, clothing, skin, hair, jewelry, flora and fauna, and works of art. Services include "camping", wage labor, business management, entertainment and custom content creation (which can be broken up into the following 6 categories: building, texturing, scripting, animating, art direction, and the position of producer/project funder). L$ can be purchased using US Dollars and other currencies on the LindeX exchange provided by Linden Lab, independent brokers or other resident users. Money obtained from currency sales is most commonly used to pay Second Life's own subscription and tier fees; only a relatively small number of users earn large amounts of money from the world. According to figures published by Linden Lab, about 64,000 users made a profit in Second Life in February 2009, of whom 38,524 made less than US$10, while 233 made more than US$5000. Profits are derived from selling virtual goods, renting land, and a broad range of services.

The Linden can be exchanged for US dollars or other currencies on market-based currency exchanges. Linden Lab reports that the Second Life economy generated US$3,596,674 in economic activity during the month of September 2005, and as of September 2006 Second Life was reported to have a GDP of $64 Million. In 2009 the total size of the Second Life economy grew 65% to US$567 million, about 25% of the entire U.S. virtual goods market. Gross Resident Earnings are $55 million US Dollars in 2009 - 11% growth over 2008. In March 2009, it was revealed that there existed a few Second Life entrepreneurs who had grossed in excess of US$1 million per year, most notably Ailin Graef, who is more well known as her avatar, Anshe Chung.