XStreet: LL Fail

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Early morning lulz brought to you in illustration by Ina Centaur on Flickr. Flickr as of yet is not paying a percentage to Linden Lab for serving Second Life residents.

I don’t think I’ve ever seen Linden Lab decide or attempt to put through new policies with such swiftness. 90 days? HOLD ONTO YOU HAT MABEL IT’S GOING TO BE A BUMPY RIDE!

Anyway, this is the new plan for Xstreet:

The Xstreet SL Experience:
The Xstreet SL Marketplace is not meant to provide a replacement or even identical experience to that of shopping in-world.  Instead, it serves as a specialized shopping experience which makes shopping & selling easier and different in many ways.  All of our research and your feedback demonstrates that.  Since it is clear that the increasing quantities of free, cheap and stale goods are hindering that experience for shoppers and merchants alike, we will take action to counteract and balance them within the marketplace, for the benefit of all.  To be clear:  we believe in a free marketplace and will not implement price controls on what merchants can charge for their goods.

Our goals are as follows:

  1. Enable shoppers to quickly find the type of item they want, at the quality they want, and at the price that makes sense to them.
  2. Enable merchants to find these customers and put their products in front of them.
The Roadmap:
We will enact the following new controls for the Xstreet SL Marketplace within 90 days, with at least two weeks’ notice, in order to improve the shopping experience:

Monthly Listing Fee for Freebies of L$99:

  • Listings for free items will now be treated as a marketing/promotional tool and thus will have a price.
  • L$99 is the price of our least expensive listing enhancement and so we will start there.
  • Depending upon desire for this marketing opportunity and perceived value given such demand, we will adjust the price as necessary to maximize this value and keep the freebie listings from becoming bloated again.
  • Expected Delivery: 30 – 60 days

Minimum Commission of L$3 on all items priced L$1 or greater:

  • We will enact a minimum commission of L$3 on all sales of non-freebie listings.
  • Since Freebie listings are now considered marketing and are charged as such, they will not incur this fee.
  • A L$3 commission will raise the commission on all listings under L$50.  This was a range suggested by residents, but it turns out that this is the price range where there is a very high transaction volume and low commission income which combine to cover the costs of those transactions.
  • We may adjust this minimum commission as we see its effects on the marketplace.  L$3 does not cover the full cost of a transaction, but the goal here is first to manage freebie growth first.
  • Expected Delivery: 30 – 60 days

Monthly Listing Fee of L$10 for all items L$1 or greater:

  • All non-freebie listings will now be charged L$10 per month to remain listed in the Xstreet SL Marketplace
  • Currently, less than 20% of Xstreet SL listings make at least one sale per month.  This displays just how much clutter of unsold items exists on Xstreet SL.
  • Doing this will provide an incentive for merchants to remove listings which are not selling, while keeping this fee low enough to have a minimal effect on listings which are selling and are desired by shoppers.
  • By reducing the overall number of listings on Xstreet SL, the shopping experience will drastically improve which will please our shoppers and be a boon to the business of all of our merchants.
  • Expected Delivery: 60 – 90 days

Separate freebies into their own category:

  • There is already a freebie section on Xstreet SL.  This section will become the place to browse for new freebies.
  • We will remove free listings from the browsable categories and keyword search results on Xstreet SL.
  • Expected Delivery: 60 – 90 days

Timeline:

  • We will provide at least 2 weeks notice before releasing any of these changes.
  • We expect to enact these controls within the time window 30 – 90 days following this roadmap announcement.

Questions and tempers are flying. “Is this the reason LL broke the  ||GiveInventory script command, which has worked without fault for a long time?”  “It’s such a pain in the ass to list on XStreet – shouldn’t LL be paying US to list?”  Many people have already begun de-listing their items. There *are* XStreet alternatives, but some of them just look 1997-pathetic.

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There are also rumors flying around that because it appears LL will indeed begin making a profit off of items sold, they will lose the DMCA Safe Harbor status they’ve been hiding behind.

Colossus Linden doesn’t seem worried. I agree with this statement for LARGER vendors. For smaller ones? This is, as hard to believe as it may seem, killing them.

Colossus Linden:  “If products are good, they should be able to be sold for enough value to cover the minor fees we’ve introduced. Additionally, by introducing these fees and removing products that aren’t selling, this will make it easier for shoppers to find new great products which may have been lost in the clutter before. This is our hope and goal.”

If you want to read more comments on this from the Lindens, check the discussion thread over at the Official Website.

The new Linden vendors (also on the Roadmap proposal) will automatically list you at XStreet, apparently, so you basically have no choice about this if you choose to continue selling with Linden Lab. I suppose it won’t be long before they implement a policy regarding third-party selling websites like the one above as well.

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