HomeCan You Make Real Money in The Metaverse?

Can You Make Real Money in The Metaverse?

Are there really avenues for earning some cash through the Metaverse?

Mark
Updated: January 16, 2023

Since the Metaverse is purportedly designed to mimic real life but within a virtual world, it’s only natural for people to ask if there are opportunities to earn real money from the digital space. Are there really avenues for earning some cash through the Metaverse?

The answer is a big “YES.” There are ways to earn money from the Metaverse, especially when it’s fully operational. Even now, some savvy investors have already made the necessary investments that could break the nest egg when the time comes. 

Let’s take a look at some of the methods through which you can get income through the Metaverse.

E-Commerce

Aside from the gaming aspect, another important attribute of the Metaverse is e-commerce. To make the long story short, the Metaverse will take e-commerce to the next level. Online shopping is already doing a good job of bridging buyers and sellers together under one platform. The Metaverse will make that interaction more personal and more intimate.

Specifically, the Metaverse will provide the opportunity for a fully three-dimensional transaction between buyer and seller. Say you want to purchase a new t-shirt from a virtual shop on the digital universe. In traditional e-commerce, you’ll have to take your chances that the apparel will fit you when the package arrives.

In the Metaverse, you have the chance to try out the item first before you make the purchase. You can preview it using your avatar, or your digital representation, to see if the shirt looks good on you before you make the purchase.

E-commerce in the Metaverse Will Boost Traffic to Retailers

Experts believe that the convenience offered by Metaverse’s e-commerce capabilities will bring in more traffic and, by extension, sales to retailers and brands. Using their VR headset and Internet connection, users can go window-shopping without even leaving their homes. 

This advantage, pundits say, can vastly improve online retail’s effects on potential customers’ purchasing decisions. While brick-and-mortar stores currently trump online stores when it comes to engagement, the Metaverse will soon make the playing field a level one for all stakeholders.

It’s no wonder brands are already making huge investments to entrench themselves in the Metaverse before it is fully operational. These companies know that, when the Metaverse’s technology is fully adopted, the low-hanging fruit will be theirs for the picking.

How Do You Start an E-Commerce Business in the Metaverse?

The process is very straightforward. To start an e-commerce business in the Metaverse, you will need to purchase real estate first. Plots of virtual land are available from providers like the Sandbox, Decentraland, and MyLand, among others. 

These real estate are synonymous to both your e-commerce website and an actual physical store. It is where you will maintain a virtual shop that your customers can visit and make purchases. While it does not yet offer items for sale in the real world, you can look to Samsung’s 837x as a good example.

But Real Estate is Expensive!

More than 20 years ago, there was a boom in hosting and domain name prices. This was because people rushed to purchase domain names, anticipating that their values would rise as demand increases. True enough, prices did increase, but there was a side effect nobody predicted – the bubble burst!

Observers cite a similar phenomenon affecting real estate prices on the Metaverse. In late 2021 and in the first quarter of 2022, whales (people with plenty of money) and celebrities drove high the prices of Meta real estate. 

For instance, Snoop Dogg’s digital residence in the Sandbox attracted other buyers who were willing to pay top-dollar to live next to him in the Metaverse. It was reported that an anonymous buyer dished out nearly half a million dollars ($450,000) on property right next to the celebrity’s sprawling complex.

Unfortunately, prices began to steadily drop after February of 2022, when real estate prices in the Metaverse hit $37,238 on average in Decentraland and $35,500 in the Sandbox. By August 2022, rates had dropped 85%! This means that the investor living next to Snoop Dogg had lost 85% of his investment! 

Prices Might Normalize As the Boom Subsides

The drastic rise and drops in real estate prices indicates the speculative nature of investing in the Metaverse. 

The price rose when people rushed to snap up parcels of land they thought would grow in value over time, but it turned out the growth was artificial. Theoretically, the sudden rise in prices caused a drop in overall demand as potential investors got turned off by the costs. 

It could also be because the Metaverse is not yet fully realized, signifying a drop in confidence on investment viability. Thus, the ones that could potentially benefit from real estate investment are those that are in the market for the long term.

Non-Fungible Tokens

Another source of income that’s hot right now on the Metaverse is the non-fungible token, or NFT. NFTs are simply digital art that the creator has made unique with a digital signature backed by certificates of authenticity and ownership. These attributes dictate the price of the NFT, which are usually sold via bids on the virtual space.

Who Can Earn Money from NFTs?

Anyone can create a non-fungible token and offer it for sale to any interested buyer on the Metaverse. You can create a work of art that can be certified as unique, meaning there are no other specimens or similar works that could compete against you. You can then pay for the necessary certificates and you’re good to go.

The trick to earning money from NFTs, however, is to create the demand. Potential buyers must be able to get value out of the purchase, especially if they’re eyeing to resell the NFT in the future or to use it in an exhibit. Take Joseph Winkelmann’s collage, First 5000 Days, as an example. 

Winkelmann, a photographer, compiled his first 5,000 photographs into a huge picture and sold it as an NFT. Exhibition rights for the NFT was purchased by a Singaporean programmer, Vignesh Sundaresan, for nearly $70 million.

Conclusion

The Metaverse is more than just a digital space to work, explore and play in. Since it is designed as an extension of the real world, it makes sense for developers to include opportunities for making real money! 

Beyond these two methods the below table summarises some other ways that you can make money in the metaverse.

MethodDescription
Selling virtual goods or servicesMany virtual environments, such as online games and social media platforms, allow users to buy and sell virtual goods and services. This can include virtual items, such as clothing and accessories for avatars, or virtual experiences, such as concerts or events.
Creating and selling contentIn some virtual environments, users can create their own content, such as games, videos, or music, and sell it to other users. This can be a profitable way to earn money in the metaverse if your content is popular and in demand.
AdvertisingSome virtual environments allow companies to advertise their products or services to users. This can be a way for businesses to reach a large and engaged audience, and can be a source of revenue for both the virtual environment and the user who is hosting the ad.
Investing in virtual assetsIn some cases, virtual assets, such as virtual real estate or digital collectibles, can be bought and sold for real money. This can be a way to earn money in the metaverse by buying and selling these assets in the same way that you would invest in real-world assets.

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