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    Friday, November 20, 2009

    XstreetSl Changes, my take

    So if you are a second life resident and haven't heard about the changes to the way that xstreetsl will handle not only freebies, but all products from here out... now is a good time to educate yourself.

    Xstreet Changes Blog Link

    Now before continuing on, if you have not read the above link, then open it and do so. Information is spreading in world, but not all of it is completely accurate from what I have seen. I feel it's much better for everybody to know for themselves what is being done.

    Now to the reaction. I had an almost immediate kneejerk reaction to the proposed changes, like many others I'm sure. But honestly the only proposed measure that got me was the listing fee per month per item that was not a freebie.

    Let's face it, running a website with as large a database as xstreet is not cheap. With only a 5% commission and a good portion of the catalogue being cheap enough to not bring in anything at all, it was only a matter of time before the admins were going to have to step in and regulate the use of freebies and cheapies.

    With that in mind, I can see some of the reasoning for the measures of charging a monthly listing for the freebies as well as making a minimum commission. Though I honestly think that the price level listing for the freebies is a tad high.

    It is the matter of the listing fees for all items prices L$1 or more that I have serious issues with, and where I think that linden lab is mistaken. There are much more elegant ways to deal with 'stale' items than what is proposed.

    Probably the simplest is time based removal from the marketplace. A product that does not sell a single copy in a matter of x-months is automatically deactivated. The creator is informed, and is then given the option of paying that same fee in order to keep a product in the market, or removing it altogether. If the item sells again then the listing fee is removed again and the timer reset. This handles better the idea of seasonal products, as the creators would only be paying for a few months before the item is in search again rather than year round on an item that only sells a few months of the year.

    Trial periods. It's hard to say which new product will be a hit or a dud, and how many creators can justify a listing fee on something new when there is the cloud of speculation? I can see the listing fee actually creating the problem that it is trying to solve as older proven product is left up and new items not taken the risk on. There instead needs to be a set period of months where a new product can be uploaded and not incur fees. This gives the marketplace a chance to flourish with new listings, while weeding out non-movers in a timely fashion.

    Increased commissions. Now I am NOT advocating increased commissions in addition to the listing fee. But in leiu of the listing fee I would instead like to see the commission prices increase slightly. It is better justified IMO than charging up front for a service that has been substandard in terms of searching for product and minimal product value.

    I would also like to see listing free freebies as a benefit to merchants. A percentage of product catalogue perhaps. Freebies do have amazing use, a way for merchants to share samples of their product with minimal risk to the customers, or in some cases are a necessity. Hair, shoes, skins and shapes are things that demo's are absolutely essential for. Yet without a demo catagory, those merchants will for forced to pay for those essential items. A percentage of freebie items in a merchant catalogue allows for demos to be boxed and handed out. It might not be perfect, requiring merchants to box several demos into a single box, but even that could have the benefit of not seeing a slew of demo sales over and over to the same buyer as they try different styles.

    Overall, the goal of reducing clutter and keeping costs reasonable is a good one, but the method proposed is flawed and will only lead to stagnation in an increasingly tiny marketplace.

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