Real money spent in virtual world

ign="center">Gingras of Toronto, a network marketing
With 60,000 square feet of retail and warehouseentrepreneur who runs ActiveTeam.com, a
space, Sierra Snowboard is as real aWeb-based business that sells food supplements.
bricks-and-mortar business as you can get. And likeMr. Gingras paid $16,500 (U.S.) in November to
many businesses, the sports equipment store inbecome "Governor of Ontario," and has since
Sacramento, Calif., also has a websitecollected more than $700 in virtual taxes from
(sierrasnowboard.com) to augment sales.registered users who live in Ontario. He has a long
Nothing special there.way to go to recoup his initial investment, but the
But as co-owner and vice-president of marketing Erikprospects for greater revenue are tied to the
Christiansen explains, Sierra is pursuing a third businessnumber of real-life Ontarians who sign up.
strategy that's pure fantasy -- buying up virtual"It's growing well and I'm still positive about it," Mr.
property in a make-believe world that he says isGingras says. "It is going to take a while and that's
paying real-world dividends.okay."
does not exist on any National Geographic map butProviding the social network continues to grow in
its inhabitants nonetheless can own or managepopularity, Mr. Gingras could also sell his title for a
everything from hot real estate and popular Webhigher price.
domains to consumer brands and celebrities.Mr. Christiansen of Sierra Snowboard hopes to parlay
Weblonians, as participants are called, pay real cashhis Weblo audience into sales. He has bought the
to buy a virtual property such as the Air Canadarights to sierrasnowboard.com, along with Austrian ski
Centre or the Banff Springs Hotel, and then makemaker Atomic, the mountain town of Truckee, Nev.
money through advertising, membership fees and-- a location famous for its extreme sports -- and is
reselling the property.the mayor of Sausalito, Calif. He also manages the
Virtual worlds have drawn a lot of interest from bigdomain of celebrity snowboarder Shaun White.
corporations. Sites such as Second Life and have"There are two reasons we're on Weblo.com: One is
attracted multinationals such as Wendy's Internationalto talk to consumers and the other is to drag traffic
Inc., Honda Motor Co. Ltd. and IBM Corp., which haveto sierrasnowboard.com," he said, noting the
created profiles, built animated characters calledcompany's Web strategy also includes having a
avatars and have launched or promoted events inMySpace profile. And so far, he's thrilled. "Truckee
cyberspace.has pretty well paid for itself," he says.
Weblo is still small time compared with Second LifeSuccess, however, may be elusive. Some critics
and MySpace.com, but it is generating interest. Whencontend Weblo's future may not be all that bright,
Montreal-based founder Rocky Mirza launched thesuggesting the site and its users may one day be
site in September, he did so with $2.5-million (U.S.) intargeted by copyright and trademark infringement
startup capital from several investors, includinglawsuits. As Weblo.com's profile grows in the real
Richard Rosenblatt, former chairman ofworld, they say, companies and celebrities whose
MySpace.com, Matt Hill, founder of eForce Media, andbrands and names are being bartered in Weblo's
William Woodward, founder and managing director ofvirtual environs may take umbrage.
Anthem Venture Partners."There are some danger zones," says John Kettle, a
"There's revenue being generated and it's really goingcopyright and trademark professor at Rutgers Law
excellently," Mr. Mirza says. "We're getting ready toSchool. "I see the potential for claims when someone
host a presidential election to parallel the U.S. election,without authorization is trading on the likeness of a
and we'rein talks with some advertisers to monetizeperson or property."
the site in other ways and evaluating other proposals.And, if the social network begins to retract and lose
So things are moving quickly."clients, those who have spent real money on a
Unlike the 3D world of Second Life, is a low-techmake-believe property may lose out. "There is that
network of Web pages that profile people or placespotential," Prof. Kettle says.
or things. There are no vast virtual cities to exploreIn the interim, Weblo continues to attract clients who
or other digital characters to bump into.don't want to miss out on potentially the next big
But, says Mr. Mirza, "in Second Life, it's just fantasy.thing in social networking. That's what drove Corey
In Weblo, you can drive around [in the real world]Pomkoski, a Montreal man who sells outdoors
and point to the CN Tower and say, 'Hey, I own thatequipment through his website nesswilder.com, to
on Weblo.' "Weblo.
In the six months since its launch, has generated"As far as Weblo goes, I don't really see any risk,"
about 10,000 registered users and has recorded moreMr. Pomkoski says. "The only problem is finding time
than two million page views. One of those is Christianto be prepared when it really takes off.