How To Make Money In The Metaverse

What Is The Metaverse?

If you ask 100 people what the metaverse is, you might get 99 different answers. That is because the metaverse is still forming, and while it’s in its infant stage it has the potential to be anything we want it to be. In essence though, the metaverse is a virtual world where people can work, play, shop, and do many of the things that we do in our daily lives. Currently, it consists of many different platforms that offer different experiences to people based on how they choose to interact with it. Some companies are looking to create platforms that will bring these metaverses together in some form, such as creating a hub for traveling between them.

The term metaverse has been around since 1992, having its origins in Neal Stephenson’s sci-fi novel Snow Crash. Forays into the technology that is underpinning the metaverse have been around nearly as long. In the 90’s the VRML coding language was introduced as part of an attempt to introduce virtual reality experiences and shopping to the internet, the technology of the time was limiting and it soon found itself on the internet's back burner as more mainstream forms of e-commerce grew and thrived.

As the millennium dawned, new forms of virtual worlds began to form. Massively Multiplayer Online Games brought millions of players together in persistent worlds, and some found new opportunities for profit in these games. Second Life was one of the most well known platforms that allowed users to profit on created items offered for sale to other users. This 3D world lets users design and sell items for a digital currency that could be turned into real world money. It was less of a game than a living virtual world, and big brands and entertainers got in on the act selling and promoting their projects and goods in this early functional version of a metaverse.

Second Life also gave those working on current metaverses something to look at as far as successes, failures, and pitfalls to avoid. More gaming companies have been creating metaverses, and have taken the integration with brands and e-commerce to new heights of success while also avoiding the problems that Second Life faced.

This is a rare sort of ground floor time with opportunities to establish a brand in the metaverse. Getting acquainted with these technologies and having a brand presence in the metaverse now will help a business have a foothold as the technology and platforms evolve.

How To Get Into The Metaverse

Right now, there are already a few ways to interact with metaverses. While none of them are an overarching version of “The Metaverse”, they contain the foundations of what the future will entail and an opportunity to establish a presence in these virtual worlds. Here are just a few examples that represent the best metaverses you can get involved with currently.

Second Life

The early example of the metaverse still exists and bears mentioning here. It might not have the same user base that it used to, but is still an active collection of communities where commerce still takes place. If you are looking for a peek at the foundations of today's metaverses, Second Life is a place to visit and experience.

Roblox

Roblox is an online game as well as a platform for game creation. It has evolved into a metaverse of its own and has introduced VR into its toolbox of experiences. It also has the largest user base of any metaverse platform at the time of this writing, with over 200 million estimated active users a month. Roblox users can create, buy, and sell everything from in-game items to whole new games. Users have turned their creative ventures in Roblox into full time jobs. Brands have also entered the Roblox world as well, with fashion houses, celebrities, and sports leagues getting their brands on the platform.

The Sandbox

The Sandbox is another metaverse that started as a gaming platform, but now has evolved into something more. As a metaverse, it is a virtual world that allows users to create games (similar to how Roblox does), create items, explore worlds, buy virtual real estate and more. It is one of the first of these platforms we are talking about that has a metaverse cryptocurrency of its own known as SAND. Sandbox has partnered with many brands, from fashion brands such as Gucci to gaming companies selling assets that evoke their top known franchises.

Decentraland

The Decentraland platform was an early pioneer into the modern metaverse, and is one of the first platforms that integrated elements of the concepts known as Web 3. It is a Virtual Reality platform with user-created content, interaction with others in a virtual world, and allows users to engage in commerce. Decentraland integrates NFT (Non-Fungible Tokens) technology, allows for the sale of virtual real estate, and the sale of user and brand created goods.

True to its name, Decentraland is a decentralized platform (meaning it runs on the Ethereum blockchain.)

How To Profit From The Metaverse

Now that we have an idea of what the metaverse is, the question that remains is how to make money in the metaverse. There are opportunities abound now and in the future, and the earlier a brand can establish themselves in the metaverse, the more chances for success they will have. Let's take a look at some of the current and emerging ways to make money in the metaverse.

Metaverse E-commerce

The earliest way people and brands made money in the metaverse was the creation and sales of digital assets. The more things change and evolve, the more things stay the same. The sale of digital goods on these metaverse platforms has become a billion dollar business. With creators building recognition on their platforms and establishing a name and business for themselves with the items they sell to other users. A whole new industry has been built as these creators have turned what was once a hobby into a way to earn a living and create wealth.

Users are not the only ones creating content for metaverse platforms. Games like Roblox and Fortnite along with platforms such as The Sandbox have found themselves the home of fashion brands including Gucci, Balenciaga, Vans, Nike, and Forever 21. Brands have found that they can sell these virtual goods to a whole new audience who might not interact with their brands in the real world, along with those who want to show off their fashion online just as they do offline.

It isn’t just virtual goods for sale either. As the metaverse grows, so do the opportunities for it to drive growth for real world goods as well. As Belenciaga sold virtual items to Fortnite users, it also offered the opportunity to buy limited edition clothing for use in the real world as well. Companies such as Dyson and Samsung have used metaverse technologies to showcase and sell their real life products as well. Companies of all sizes are now learning how to make money in the metaverse.

Wal-Mart recently gave a peek into their vision of the metaverse future as well, announcing their moves to sell virtual goods, NFT’s, and exploring possibilities of a virtual metaverse store where people can do their real world shopping.

More and more dollars are being spent on both real world and virtual goods in the metaverse. Brands that can find a way to profit from this form of e-commerce have the potential to make a great name for themselves in this space. This is especially true for new brands who are looking for a market opportunity to help them grow.

Creating Metaverse Based Experiences

Another opportunity for making money in the metaverse is creating worlds and experiences in the metaverse. As stated in our look at the various metaverse platforms, Roblox, The Sandbox, Decentraland and others allow you to create games and experiences using their platforms. The experiences being created are incredibly varied from fashion shows to sports.

Games created in Roblox allow designers to build worlds and experiences, as well as sell microtransactions to users. Users are creating over 20 million games a year using the Roblox platform. However, brands are also using the platform to create experiences too. Nike recently announced Nikeland, a virtual metaverse experience built on Roblox that includes a variety of minigames that users can play with friends. It does all this while leveraging the user’s phone to turn their real life movements into movement in the game. Of course, they also offer the ability to buy digital Nike goods to dress up their avatar via a virtual storefront. The NFL, VANS, and more have also started to create these experiences with Roblox.

On other platforms such as The Sandbox and Decentraland, have ventured into brand experiences with Fashion Shows that featured the top names in fashion, partnerships with a group of Hong Kong based brands, and even a recent announcement of an in-world palace for Paris Hilton. Decentraland also has teamed with Samsung to create 837X where users can explore an immersive world that features the latest Samsung innovations.

Real Estate And Investing In The Metaverse

For some, making money in the metaverse is not about brand presence and creating goods or experiences. Some are looking at the metaverse as a way to increase their investment portfolio. These investors are getting in on the ground floor of a brave new world, and there are a multitude of opportunities and possibilities available to them. Much of this investment comes from the integrations of blockchain technology in some of the platforms.

NFT’s and cryptocurrency form the backbone of many of these investments. Digital real estate is often sold using NFT based smart contracts, and can be transferred between users when sold using blockchain as a proof of ownership. Buying land in the metaverse could be done for a variety of reasons, including building a home to store your virtual goods or a building for your brand to sell its goods. Popular platforms for metaverse real estate right now are Decentralized and The Sandbox, as they have the infrastructure in place to facilitate this kind of asset.

The popularity and potential for virtual real estate is reflected in the popular Massively Multiplayer game Final Fantasy XV, where users will wait for property to go on sale and bid vast amounts of in-game currency for an opportunity to have their own in-game home. As more people move into the metaverse, they will also be trying to get their own piece of virtual land to make their digital home. The prices on real estate in the metaverse keeps climbing and much like real world property it will soon be a sellers market.

For those looking for a different kind of investment, NFT’s and cryptocurrencies are a huge opportunity for growth. NFT’s that represent virtual goods, real life goods, and other investments can be purchased and later sold for higher amounts. Cryptocurrencies like SAND, Ethereum, and MANA are a few metaverse connected examples that can be invested in, sold, and traded.

Platforms such as Roblox also offer opportunities for investment, with a healthy resale market and limited edition items that can increase in value over time.

As the metaverse grows, so will opportunities for investment. This is just a look at what is available today, and will get you started and prepared for whatever opportunities come next.

Advertising In The Metaverse

If there is a place that people can look at or listen to, you can bet that there is some way for brands to advertise there. The Metaverse is no exception and advertising has already become a massive business in existing Metaverse worlds. From billboards to brand activation events, the groundwork for metaverse marketing has been laid and is ready to be built upon.

In game worlds like Fortnite and Roblox, advertising has become a major part of the world itself. From billboards advertising brands in online games to massive events sponsored by a brand, there are countless opportunities depending on your size and budget. Fortnite has worked with film studios like Lucasfilm/Disney and musicians like Travis Scott to put on events such as concerts and movie trailer reveals.

Events where brands offer in-game goods are also a form of advertising. Recently the Wu Tang Clan partnered with Fortnite to promote their new tour by offering in-game “Wu Wear” skins for players to wear. Some ad campaigns also promote real world offers, such as when Roblox partnered with Chipotle Mexican Grill to give away 100,000 burritos as part of a cross brand promotion.

The potential of Augmented Reality platforms for the metaverse will open these digital ads into the real world. Imagine projecting your ads over an existing billboard or onto blank walls via a user’s AR glasses. This blending of digital and the real world will give many new marketing opportunities to literally put your brand in front of the eyes of potential customers.

Upcoming Metaverse Platforms

As we said in the start of this article, the metaverse is still in its infant stages and will continue to grow and evolve until it finds its final form. Right now, some of the biggest names in tech are developing their visions for the future of the metaverse and building the hardware and infrastructure to bring it to life. Some of these visions may be completely different from one another, but the competition between them will help the final vision take form as users vote with their time and wallets.

Let's take a quick look at some of these upcoming platforms and what we know about them.

Google

Google’s Metaverse plan currently consists of their project currently code-named: “Project Iris”. It blends the idea of a VR headset with an AR experience, mixing the real and digital worlds in what they hope will be a more immersive experience. Not much else is known about the project, but we are sure to hear more as development ramps up and they get closer to their planned 2024 release.

Meta

Facebook has committed themselves to the idea of the Metaverse so much that they changed their corporate name to Meta. The company bought VR technology builders Oculus in 2014 and has since started to build their plans for a virtual world. Aside from games available on Meta Quest headsets, the company has recently given us a view of their plans by opening the Horizon Worlds app to the public.

Meta seems to be betting on a more Virtual Reality focused future for the Metaverse, including virtual social and work spaces, virtual meetings for offices, virtual gyms, and more. Meta Quest headsets and Horizon Worlds are available now, but Meta’s plans for the future are still in a more fluid early phase.

Microsoft

Microsoft has actually been ahead of many other companies when it comes to developing metaverse style technologies and putting them into action. While not consumer focused, the tech giant has been putting its Hololens technology to use in the manufacturing, Engineering, Healthcare, and Education industries. Hololens is an Augmented Reality headset that projects holographic images in front of the user that can be interacted with. Microsoft is also apparently working on Virtual Reality headsets for gaming, and recently purchased game developer Activision Blizzard as part of their efforts towards developing Metaverse projects.

Apple

Apple is notoriously secretive of the technology they develop until they are ready to announce them. However; the rumors are they will soon be announcing their foray into the metaverse with a pair of Augmented Reality glasses. Apple has been at the forefront of innovative chip development and already has a successful wearable technology with the Apple Watch, meaning the iPhone developer might have some advantages when it comes to integration with current products.

The Future of The Metaverse

After seeing what the tech giants have in store, what can we say about the future of the Metaverse and how brands can profit from it? The main point would be that the future of the Metaverse is bright, and everyday companies are discovering new ways how to make money in the Metaverse. The sooner a brand gets established in the virtual world, the easier it will be for them to grow along with the technology and its users.

The technology is still in its early stages, and the metaverse as we know it today might be different from the one that exists 10 years from now. The companies developing the hardware and the software will have a conversation with users and their wallets, and these rival technologies will coalesce into the final form based on what technologies the users find most appealing and usable. More companies seem to be betting on Augmented Reality technologies, but virtual worlds will always have an appeal and dedicated user base as well.

We don’t know exactly what the future will look like. What we do know is that by following the users and where money is being spent, you are likely to produce better results and profit than following hype alone.

Conclusion

The Metaverse is poised to change the way we live, work, and play in ways that we have not seen since the birth of the mobile internet. Much as how brands found success by early investment in mobile technologies and platforms, so will it be for those seeking to profit from the Metaverse. If you or your brand want to profit on the Metaverse today, there are a number of diverse ways to get in on the action.

Selling digital goods, creating experiences, real estate, investment, and traditional advertising for real world goods are all opportunities for reaping the rewards currently awaiting in the Metaverse. The future will hold even more opportunities to make money in the metaverse, and a full service marketing agency such as ComboApp can help you take advantage of those opportunities.