PayPal™ vendor release schedule

Due to the changed rollout schedule for server version 1.27, and a desire to ensure that this release is not caught by a possibe rollback to 1.26 in case of any major issues with 1.27, I’m moving the previously announced release schedule for the PayPal™ vendors back slightly. The rollout should complete around 0900 SLT tomorrow (Thursday 16th), at which point the basic vendor will ship out to beta testers. Assuming no last minute problems, it will formally launch on Friday 24th July. The pro vendor is code complete, but not yet finished with internal testing, and should go out to beta testers over the weekend, for release on Friday as well. Work on all other vendors is currently paused pending feedback from the original two, but you can expect to see these in early August.

We’re doing a launch event on Saturday at 1700 SLT, location to be confirmed, with Madame Maracas DJing. Along with a variety of my more recent releases, preview copies of the PayPal vendor will be able to buy for 1/3rd off (with updates for life, as always).

Lastly, review copies; if you’d like a review copy please e-mail me (you can get my address from my SL profile) with:

  • Your name (the name you publish under).
  • The name of the avatar to deliver to, in SL.
  • The URL of the publication you work for.
  • A URL for a piece of work of yours at that publication.
  • If you’re not e-mailing from an address clearly part of the publication, some sort of proof you are who you claim to be. An e-mail listing in the publication, the address at someone clearly attached to the publication who can verify your identity…

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So Xugu, how much do you make?

After the realisation last night that it’s going to be more cost effective for me to not sell the PayPal™ vendors, I thought I’d go over my accounts and find out exactly how my SL store is doing. I hope to also demonstrate why it would cost me more in admin costs to sell the vendors, than I am likely to make from selling them. Lets give some details about my business in SL to start with. I sell scripts (some with objects as example, but mostly just pure scripts) in SL, for L$. I’ve been doing this for about a year, but am focusing on this year to date (2009) because I’ve invested more time and effort. I have in-world and XStreetSL presences, although XStreetSL accounts for the majority of my sales.

I’m going to focus here on in-world only, and only on transactions that are business related (by which I mean I’ve spent half the afternoon clearing out my own purchases from the transaction logs). Records are essentially year to date, and all figures are in L$. Figures are precise enough for my curiosity, but are not exact.

Chart of income and expenditure year to date 2009.

Chart of income and expenditure year to date 2009.

In short, that means I made about L$6,000 more on in-world sales than I paid in rent, but made L$117,000 in XStreetSL sales. Expenses primarily consists of image upload costs. This gives me a typical monthly profit of about L$19,500, or about $75 USD if it were converted to real money. I pay $27.50 USD in web hosting, leaving me with a theoretical (because I’m not pulling profit out of SL) $47.50/month. Assuming about a 80 hour/month investment, that’s a little over $0.50/hour. Before I start talking about cost of hardware.

Can I have a pay rise please?

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Virtual world, real currency

Lets talk about implications of the PayPal™ vendors for a moment. As it stands right now, profits in virtual currencies such as Linden™ dollars are widely considered to be as if you made a profit in marbles. By this I mean that while you have a profit in something valuable, it is not considered a “real currency” and therefore doesn’t count for income tax purposes until and unless you convert those profits back to a real currency (US dollar, Euros, etc.). If you’re accepting payments in “real currency” using PayPal, you now need to consider (and these vary by country, but I’ll cover my interpretation of UK law later):

  • Do you need to register as self-employed?
  • Do you need to charge sales tax?
  • Do you need to pay income tax on the sales?
  • Do you need to make pension contributions?

So lets be clear here; PayPal payments are not for everyone. If you’re spending a couple of hours a week making things in Second Life® for fun, this is probably not for you. If you have a full time real-world job, this is probably not for you. If you’re thinking of emigrating to a different continent, this is probably not for you, but that one’s probably just me.

However lets say you are a serious trader in SL, that this isn’t just a small time hobby for you, PayPal can bring you several advantages:

  • Customers do not have to decide to convert money to L$, before they can buy from you. Converting to/from L$ involves a loss (from the spread between the bid and ask prices for L$ transactions, and the transaction fees charged by the LindeX™ currency exchange), so customers may be reluctant to convert money to L$. This particularly applies to newer users of SL.
  • You do not have to convert L$ back into money. It can be used directly to pay for web hosting, hardware, or any of the other related costs in running an SL business.
  • Both of the above advantages are magnified for non-US based sellers and customers, who do not necessarily have to deal with a conversion to/from US dollars as well.
  • Institutional customers (education, business, etc.) are much more likely to be willing (and able) to buy from a PayPal vendor. Purchasing procedures typically do not handle an interim step through L$ before payments can be made.
  • PayPal provides detailed transaction logs. Receipts are e-mailed automatically to seller and buyer, and both also get extensive details of the transactions on the website. They also can automatically report payments to external systems (which is how the vendors work).

Lets assume you do take your SL sales seriously, and are ready for this next step. Keep in mind, this is likely to include anyone who makes a RL profit from SL at all (certainly by my reading of UK laws on self-employment and income, anyway). You should look into how you register as self-employed in the country where you are resident. The list of things you need to be aware of may look scary, but they’ll have people to walk you through this, and it only has to be figured out once. In the UK, Business Link are your next step. In the US, the equivalent appears to be Business.gov. In Australia, http://www.business.gov.au/.

Personally, I’m not using these vendors due to the complexities of my own life. My sales just about cover my costs in land rental, image uploads, etc. Due to income from my day job I would be losing close to 80% of each transaction in fees, taxes and national insurance. On top of that I am intent on emigrating next summer, which would put me at risk of breaking all sorts of complex laws involving work visas AND possibly make me liable for taxes in two different countries simultaneously. My Second Life sales have always been, and continue to be, primarily for marketing.

I hope however that others will find these vendors of use. I hope that those people who take SL seriously can use them to progress virtual world transactions to their next logical step.

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PayPal™ vendors removed from in-world

After careful consideration, I’ve come to the conclusion that for legal reasons I cannot feasibly accept payments for products, in “real” currencies, at this point. As such, I’ve removed the (as yet unused, thankfully) two sample PP vendors from in-world.

I’ll be posting an article on the exact details of real world payments in virtual worlds over the weekend, for the curious. Personally, my issue stems from the fact that I’m primarily in full time employment (with SL as a hobby), and additionally that I am intent on emigrating next year. These factors mean that accepting payments in a real currency would require excessive amounts of paperwork to handle correctly, and expose me to unreasonable levels of risk (of mistakes in tax returns etc.).

Obviously, this is greatly disappointing for me, as it highlights far too well one of the complications with the vendors. I hope you’ll be patient with me in this matter, and with luck I’ll be able to accept payments directly during the financial year 2010-2011.

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PayPal vendors; tentative release schedule

I’ve been working frantically vendors that can be paid through PayPal™ (either from a PayPal™ balance, or directly with credit cards). These vendors do not require any sort of external support, and receive payment notifications direct from PayPal™ using the new HTTP-in support for LSL. Right now, initial test vendors are up in my shard store in Cape Suzette, selling my swing door script and re-color/re-texture HUDs for $1.99 and $3.99 (USD) respectively.

I’m waiting for server version 1.27 to be rolled out across the grid before vendors go out to my beta test group, which should be Wednesday 15th. Assuming no last minute bugs, I’ll be releasing two vendors on Monday 20th:

  • A basic (“value”) model for anyone who is on a budget, or just wants to dabble without committing too much yet. It won’t handle sales in L$, and configuration has to be done by interacting with the script (dialog menus and chat) rather than by notecard. Priced at L$375/$1.49.
  • A pro model, intended to suit the majority of users. Works as a combined PayPal™ and L$ vendor, configured by notecard (so a script reset won’t wipe the configuration). Also adds more detailed sanity checking. Priced at L$750/$2.99.

After those two releases, several more vendors are planned. Aiming for a Friday 24th release are:

  • A menu driven vendor that can sell multiple different items.
  • A touch (single prim, detects touch location on prim surface) driven vendor for multiple items.

Details of further vendors will be released later. Watch this space for more details on the first two vendors, including how to request a free review copy.

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Object color change HUD

This is a pair of scripts for changing the color of prims using a HUD. It’s intended for use in products you sell, such as hair, eyes or shoes, but would also be a useful tool for builders who which to change colors quickly, particularly for changing some colors on a prim quickly. The HUD itself is built on Bjorn Nordlicht’s rather excellent HSL color picker, heavily modified to drive the prim re-coloring script directly.

Key features:

  • Full perms – intended for redistribution as copy/mod or trans/mod.
  • Change some or all sides of prims, and some or all prims in an object (notecard configured)
  • Powerful hue, saturation and luminance based HUD. No need to pre-define colors, they’re all available from the provided HUD.

XStreetSL: https://www.xstreetsl.com/modules.php?name=Marketplace&file=item&ItemID=1593176 – L$500

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Deluxe avatar age & height detector

Looks up the age and height of any avatar that clicks (touches) it, including calculating their age relative to the active population. Useful as a curio in nightclubs, shops, waiting rooms, etc.

Features include:

  • Displays age in years, weeks and days (please keep in mind leap years before telling me that it’s mis-calculated an avatar’s age; they are calculated and included in the displayed value).
  • Displays height in both metres and feet.
  • Displays age relative to the active population (using a shared database of avatars), for example “Xugu Madison is 1840 days old, 1.99m / 6’6″ tall (with shoes). They are within approximately the 8% eldest of the active population.”.
  • Designed for heavy load; doesn’t block touch events while looking up one avatar, and doesn’t get confused if two avatars use it at the same time.

Included in the package are four versions; two as spheres, two as plaques for a wall. Each object style comes with a texture in orange, and a texture in grey.

XStreetSL: https://www.xstreetsl.com/modules.php?name=Marketplace&file=item&ItemID=1592653

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PayPal Vendor Coming Soon

Waiting on SL server version 1.27 going live (currently scheduled to be completed by the 15th), I have a PayPal vendor for Second Life. Drop an item in, give it a price and your PayPal account e-mail address. Customers then click the vendor to get a URL out of it (cannot use llLoadURL() to bring up a dialog due to maximum URL length: please vote for http://jira.secondlife.com/browse/SVC-4109 to see this fixed), and click that URL in chat.

This brings the customer to a PayPal login page. They log in to confirm their identity, and it brings up a payment confirmation page. The click “Pay Now”, and the money is transferred to your account, and the vendor ships the item.

Problems so far:

1. It can’t perform refunds itself, but needs manual intervention instead.

2. llLoadURL() hangs the script for 10 seconds, and can’t accept URLs long enough.

3. PayPal payment fees are fairly extreme when dealing with $1-5 at a time (expect to typically pay $0.30 + 2.9% per transaction).

I’m looking for testers if anyone’s interested; contact me in-world for more details.

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Holo vendor

Just put this item on XStreetSL. There will be a formal launch event before it goes on sale in-world, but I wanted to let you guys know about this ASAP.

Holo (rezzing) vendor, designed to sell a variety of products while taking up only the prim allowance of one at a time. Rezzes products in-world one at a time, either on request or by cycling automatically through available products, and allows them to be purchased. Based on the highly rated single object rezzer. Features include:

  • Menu-driven
  • Auto-cycles through products if avatars are nearby, but not using it.
  • Shuts down and de-rezzes product if no avatars are nearby, to reduce lag.
  • Converts show items into mini-vendors, to simplify purchasing and increase sales.
  • Interactive objects (furniture with pose balls, for example) are rezzed fully functional.
  • Integrated notecard giver in mini-vendor.
  • Can be used to sell scripts, textures, or anything else, while rezzing demos on demand.
  • Notecard configuration

Operation

When an customer clicks the vendor, it “locks” it to them, and then brings up a dialog menu of products that can be rezzed. This menu is paged (so you can store as many objects as you like, up to the limits of script memory). Vendor control only passes from an customer when they leave the area, or another customer tries to use the vendor after the customer has been inactive for a while (duration configurable).

When an object is rezzed, the vendor announces its price in local chat, and will accept payments. If it’s paid (by any customer, not just the one it’s locked to), it will check the payment amount and then deliver the item to them. On touch, it brings up the menu for the customer to pick a different object to rezz. It also passes a copy of the object for sale, to the rezzed object, enabling it to act as a “mini vendor” for that one object. This makes it easier for the customer to find an object to pay, and so improves the chances of a successful transaction.

Left alone, the vendor goes into an inactive mode to reduce lag. If it detects customers nearby, but not interacting with it directly, it automatically cycles through its inventory of objects in case one appeals to a passing customer. If clicked on in this state, it locks to that avatar and offers them the rezz menu.

Where To Buy

XStreetSL: https://www.xstreetsl.com/modules.php?name=Marketplace&file=item&ItemID=1578770

inSL: Coming soon

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Big red button – Freebie

It’s big, it’s red, it’s got a little flip-lid, and it’s just asking to be pressed. What does it do? Erm… well, lets just say you’ll want to be outside when you click it. Not going to ruin the surprise here, but it’s free, and you can try it out in my shop if you prefer that to getting your own copy.

A full perms version will be available soon, or now by request (IM me), but I want more time to clean up the instructions before it is made widely available.

inSL: http://slurl.com/secondlife/Sunweaver%20Air/202/45/141

XStreetSL: https://www.xstreetsl.com/modules.php?name=Marketplace&file=item&ItemID=1571408

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