The Next Dimension Need to breathe some life into your business? Going virtual can open up a whole new world.

By Heather Clancy

Opinions expressed by Entrepreneur contributors are their own.

If you've got a product that's hard to show off in person or your customer demographic skews thirtysomething, start thinking in 3-D. While skeptics write off virtual worlds on the web as arcades for young folk, research firm Gartner Inc. estimates that by 2011, 80 percent of active internet users will have an identity in a virtual web world. At any given moment, roughly 35,000 people visit the most hyped of these communities, Second Life. Linden Lab, which hosts the environment, estimates that 35 percent of Second Life visitors are 26 to 35 years old and approximately 75 percent are male.

Adam Broitman and Raman Kia, directors of New York City marketing agency Morpheus Media, paid $1,700 last year to buy a Second Life "island" so they could experiment on behalf of their entertainment and fashion clients. One test involved a simulcast of a live rock concert in New York City to avatars visiting their island. Another New York City agency, TMP Worldwide, uses Second Life to host job fairs and help clients such as eBay and Sodexho interview recruits.

Branding consultant Janet Schijns, CEO of The JS Group, says it will cost you about $50,000 to hire designers who can develop a virtual-world presence, although a less substantial presence can cost you half as much. But if you're not willing to dedicate human resources to interact with visitors, it'll be money wasted. "It's not an event. It's not a world," she says. "It's an experience."

Brian Haven, an analyst with Forrester Research Inc., cautions entrepreneurs not to think of virtual worlds as just another place to sell products or services--at least not yet. Second Life in particular is hard to navigate, and the number of avatars that can visit an island at the same time tops out at about 80. Still, larger companies in the retail, travel and automotive industries--American Apparel, General Motors Corp. and Starwood Hotels & Resorts, to name a few--have fostered goodwill with customers and business partners alike by testing products and selling virtual products in Second Life.

The web is a brave new world for marketing.

Heather Clancy, a freelance journalist and consultant, has been covering the high-tech industry for close to 20 years.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

AI Is Going to 'Replace Everybody' in Several Fields, According to the 'Godfather of AI.' Here's Who He Says Should Be 'Terrified.'

Geoffrey Hinton, called the "Godfather of AI" due to his pioneering work on AI, says some fields face a heavier risk of replacement due to automation.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Meta Is Reportedly Planning to Release New AI Smart Glasses With Oakley and Prada

The Oakley Meta AI glasses are expected to cost more than the Ray-Ban Metas.

Leadership

How to Know When It's Time to Sell Your Business — Before It's Too Late

It's not always simple to recognize when it's time to move on. Here are three signs to look for to help you make the decision.

Taxes

Why New Tax Rules Could Be a Game Changer for Your Business

With the One Big Beautiful Bill Act making its way through Congress, entrepreneurs need to be ready for significant tax policy changes.