Kitely Market Presented in OpenSim Community Conference 2013

Kitely Market is a virtual goods marketplace that is designed to help join all Hypergrid-connected OpenSim grids into one viable ecosystem. Its mission is to help the Metaverse evolve from a collection of standalones and small grids to a unified market that can attract more merchants, buyers, money, activity, and interest for everyone.

I presented the Kitely Market in the Business and Enterprise track of the OpenSim Community Conference 2013.

Here is the video:

Here are my slides:

  • Ada Radius

    Brilliant, visionary, great job Ilan.

    • http://www.kitely.com Ilan Tochner

      Thank you Ada :-)

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  • healingshoes aka LokiMortmagus

    wow Ilan.
    ok, consider me impressed.
    this is a damn good start.
    demo and product on the same page is awesome!
    why not create an in-world stroll and wander as you search setup too?
    Like you stand in a mall. the browser could be on desktop OR if possible, in world as well, and the storefronts appear all around you based on your search, with demos rezzed for the page hits you searched.
    make it rezzable on demand.
    the value in this would be for things like a film production which is in-progress, on location…
    they need some new stuff to drop in because their plan isn’t working. so they wear a hud, rez this market interface, do a search, and viola… they can test drive their searched options and make a purchase right there, on the spot, on the fly, and don’t have to go running around to test demos and make a choice.
    time is money. this would save people sooo much time and energy.
    the reason I think this would be the best forward thinking solution is because full immersion VR is coming, soon.
    The net itself is soon to become a virtual world, an immersive 3d virtuality.
    and guys like you are going to be the portals through which everyone interacts with that internet.
    So if I understand this correctly… Kitely Credit is basically an in-world in-kitely personal use only license, which foregoes and does not grant any media content creation or commercial content creation exploitation rights, correct?
    Whereas US dollar payments for basic permissions grant the user a basic photographic/media exploitation license… they can shoot photos or videos and make their own website content for a commercial site, like cartoons or comics.
    And a full license allows export out of Kitely for universal exploitation rights?
    If so, this is damn close to perfect, lol.
    I see one missing element which would involve a two step process… a repackaging permission license tier, and an automated profit splitter for the repackaging permissions tier.
    this tier would not permit the buyer to resell the products full perm, and wouldn’t give them media content creation rights either. it’s a builders package basically.
    it would let those builders who have that rare and special giftset of taking other people’s works and assembling and arranging those things into a professional and slick looking package do what they do best… make a complete set, or environment, or broadcast quality avatar package, using other people’s individual components.
    For example, I buy a repackaging license for a big dome for a very small fee… say 10 or 20% of full permission price, or even get it for free from the merchant.
    Then I do the same for a house, a garden flower patch, grass, a big tree and garden swing, furniture, and animation sets.
    I buy rights to camera position scripts, and create a hud with camera and focus pulling presets which give ready made 16:9 frames to movie producers, saving them a ton of setup time.
    then I assemble it all, setting a price based on the price set for repackage content sales by each vendor, and list it for sale.
    when it sells, each merchant gets their portion of the sale price, minus a commission paid to the repackage creator.
    For example…
    Dome repackage price is set at Free for repackaging license, 5 bucks for media content license, 10 bucks for universal broadcast and theatrical distribution rights.
    Repackager buys takes the dome, puts all the content in his package, lists it for sale at the combined value of 40 and 80 dollars for all the content in it.
    It sells. he gets 4 or 8 dollars, Dome seller gets 4.60 or 4.20, or 9.20 or 9.60 dollars, depending on the license.
    So everyone can get paid automatically. The skilled builders who just want to build can get access to everything cheap, and build for buildings sake, but the merchants will still get their fair share of the builders repackaging sales.
    EVERYONE wins with this. But thus far, trying to get this incorporated in Second Life has fallen on deaf ears.
    But I bet if someone else does it, and unites the open sims, Second Life will incorporate the technology and link up to open sims market.
    And YEAH, I think Oculus may well be our future interface for the next 10 years at least. I’m working on helping pave the way there too.
    Keep the great work up man. It’s looking GREAT!
    Sincerely yours,
    Hsing/Loki/healingshoes

    • http://www.kitely.com Ilan Tochner

      Hi Loki,

      Funny you should say that, our first idea for Kitely (5 years ago) was an automated 3D store creation service. Anyway, it isn’t too difficult to implement such a service on top of Kitely but doing so isn’t at the top of our (very long) priority list at this time.

      Kitely Credits are a Kitely-only unconvertible virtual currency. You can use it to pay for virtual goods when merchants are willing to accept KC. What you buy with them is exactly the same as what you buy when paying USD for those virtual goods.

      Kitely uses a Second Life derived permission system for defining what may be done with items (Copy/Transfer/Modify). Items sold via KItely Market that have not been authorized by merchants for export can only be legally used inside Kitely (and we enforce that in the content export tools we provide). Content sold with an export permission can be legally used outside of Kitely as well. The scope of that license depends on the merchant selling the item. If an item doesn’t provide both Copy and Transfer permissions then you are not licensed to give copies of it to other people. If it doesn’t provide Modify permissions then you aren’t allowed to modify it. These are the default license terms, merchants may decide to add additional ones in the product’s description and in a notecard delivered as part of the product.

      Revenue splitting between merchants contributing to the creation of an item is on our roadmap.

      I too believe the Oculus Rift and other VR hardware will help virtual worlds cross the technology adoption chasm to become something with mass market appeal.

  • healingshoes aka LokiMortmagus

    one more comment…
    I think you should reconsider the kitely commission. it’s way too high.
    yes, you give examples of others who charge the same, or more, but how many merchants use them?
    If you get 1000 people at 20%, that would be ok.
    but wouldn’t it be better to have 100 million at 1%
    My personal feeling is that you should consider dropping commissions altogether.
    Change it to a flat fee sales tax, moving the burden of cost over to the end user, with no commission deductions taking money away from the merchant or repackager.
    This would prevent them from having to set much higher prices to offset commission reductions. The cumulative impact of offsetting commission reduction can result in hyperinflation, which is really bad, lol.
    Set a 5% kitely sales tax. And if it doesn’t end up covering infrastructure costs for you, add a 5% goods and services tax.
    I guarantee you this will result in better metrics for all.

    • http://www.kitely.com Ilan Tochner

      We charge a 10% commission on sales made in Kitely Credits. Sales that
      use USD cost us a lot more in fees, fraud loss provisions and operational costs. We therefore charge an additional 10% for those sales (for a total of 20%).

      Most online marketplaces charge a 30% sales commissions (some companies divide it into separate fees, some give better rates for products that sell well, and some give better rates to new merchants). However, that 30% is the standard baseline commission Apple, Google, Microsoft, Samsung, Amazon, and Facebook charge (totaling hundreds of millions of paying customers, spending billions of dollars annually on buying from millions of digital goods providers).

      As 30% has become the standard commission the “big boys” charge, hundreds of other online marketplaces serving many other fields charge similar rates. In other words, Kitely’s 20% commission is lower than what most marketplaces charge and the market has proven that merchants have no problem adopting marketplaces that charge 50% more than what we do (30% = 1.5 * 20%).

      Merchants listing items in Kitely Market can generate revenue from people who wouldn’t buy from them otherwise. If they are holding back because of our sales commission (which is objectively low) then they’re just going to lose money they could have earned from people buying in our marketplace (80% of a sale is a lot more than 100% of a lost sale).

  • healingshoes aka LokiMortmagus

    PPS (lol) -> Oculus Rift has a SL viewer working. If I was you I’d talk to them and encourage them and OR to integrate with kitely now, before the official retail rollout.
    People like me will still need to have the 5 sims from SL as a baseline for insurance purposes. There’s no getting around that.
    But I’d rather get those 5 SL sims and then get 4 of your megaregions than have to pay for another 20 SL homestead and open sims.
    IMHO, you’re now very close to fulfilling conditions SL would need for cross linking and market integration. And I see no one else even remotely close to becoming the hub that brings it all together.
    So I think if you make the right moves and create the right infrastructure now, you may well become the Unity hub for the next iteration of the internet.
    So keep it up!

    • http://www.kitely.com Ilan Tochner

      Thank you Loki :-)

      Various TPV viewers that work with OpenSim (and therefor Kitely) are working on getting good Oculus Rift support, so it shouldn’t be long before you can use it with Kitely. :-)

  • Samantha Atkins

    You guys are really thorough! This marketplace is a viable product in and of itself. I am sure some non virtual stores would love to have this good and well thought out structure. Not that I want you guys to chase anything else!

    • http://www.kitely.com Ilan Tochner

      Thank you Samantha :-)

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  • Merit Coba

    Really good enterprise initiative. Needs money, guts and stamina to get it working. Winds are favorable though.. the tos changes of linden seems to have people looking for an alternative. And you are right.. at times I have a look at sl alternatives because the land prices are extreme(i need land to make a scene for my graphical novels) and I would love to move to a less expensive world but the lack of content is holding me back.
    I can even see how you can use it like for instance for MMOs or games that allow modded content (take for instance the elder scrolls series).
    The possibilities are in fact endless. you could have content for products like Movie Maker or Blender or Xtranormal or Cloud Party.
    Still have a hard time to find out if a product is available for the platform I am using.. I looked at the marketplace that is now operating and I cannot quite see how I can see if something is available for say Open Sim or any other branch.

    • http://www.kitely.com Ilan Tochner

      Thank you Merit :-)

      All content in Kitely Market is currently compatible with OpenSim.

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  • https://www.youtube.com/anticherylvids J. David

    I’m a creator/vendor. I’d like to list on a universal marketplace.

    I hope Kitely will facilitate merchants accepting Bitcoin. Have you already had a close look at Bitcoin? It is awesome.

    • http://www.kitely.com Ilan Tochner

      Hi David,

      You’re welcome to go to our marketplace and start listing your items. You can already sell them to all hypergrid-connected grids for USD and have your sales revenue delivered to you via PayPal as described in my presentation.

      We’re following the development of Bitcoin. There is a lot of interest around it, and we are aware of other ecommerce sites that have started accepting it, but it has yet to reach the level of stability we believe is required for us to start accepting it ourselves.

      • https://www.youtube.com/anticherylvids J. David

        It’s a good time to have it built, tested & ready to open even if you keep it concealed/unavailable until you are confident about opening it up. There are some complicated aspects which will take some careful coding. If you can pull it off without using Coinbase or Bitpay to process it, that would be awesome.