Depending on how net savvy you are you may or may not have heard about a virtual world called Second life. As the name suggests it’s a world where real people go to live virtual lives. You can even go so far as to call it a replica of the real world. With 11 million users, 800 million square miles of virtual land a full time reporter to write about the happenings of Second life and companies such as GM, IBM and Armani considering developing their presence in Second life it is by no means a regular chat site. Oh yes did I mention that 7 million dollars are used for trading by residents of Second Life and by the way that real money I am talking about.

So if you think this is a stupid and pathetic concept well let me tell you that Second life has just produced its first real world millionaire and there is a lot of potential to make real money in this virtual world. The rage that this site has generated and the reason for its popularity are often disputed. Most people feel that it is difficult enough to manage one life without having to worry about a second one but obviously the millions of teenagers who spend a minimum of 12 - 14 hrs in Second life disagree with this line of reasoning. Psychologist believe that this alternate reality is a good way for people to live out all their fantasies and desires and this is what makes it so popular.

Let’s talk about how Second life works. You do not have to pay for your initial account with SL, since it is for free. After you set the initial account you will have to download some software so that you can get your own #D avatar, or a virtual representation of yourself. You will use this virtual presence to navigate through SL and interact with other users. An upgrade to a premium membership will cost you $9.95 per month and in return residents receive $300 in Linden Dollars. This is the virtual currency that is used to buy things in SL. So yes there is a limit to how much virtual currency you can get because you have to spend real dollars to get it. Currently the going rate for $1 US dollar is $250 Linden Dollars. This money is used to trade, to buy services etc in SL just like you would use money in the real world. Oh yes you can also make money in SL by working for other residents. You can also start your own business and make money in SL.

Now this is where the money making opportunity lies. The Linden Dollars can be exchanged for real money. As incredulous as it may sound but there is actually an exchange rate for Linden Dollars with parity between the selling and buying rates. Currently it cost $4.05 to buy L$1000 but you can only get $3.51. You can find more information on this on sites related to second life economy.

Now let’s talk about how you can make money on second life. People pay for various virtual products and services that they buy and sell online. As a mater of fact the internet abounds with stories people who have quit their day jobs to make money from their second life business ventures. One way is to trade virtual property or land. People pay as much as $15 to $75 for normal sized land parcel in second life. Another way to make money is by selling accessories for the various avatars. This is just like selling accessories like clothes, shoes etc in the real world the only difference being that you are doing it for virtual forms.

Just like in the real world, you can make money from property in Second Life also. It is entirely up to you how much you do and how big you go, but there is good money to be made either way.

When looking for land/property to buy, look for cheap deals & undervalued property just as you would in the real world. Then, when you develop it and sell it on, you can make a nice profit.

Once you have money behind you, you can then buy property to let out and get a rental income from them for years to come. Whichever method you choose, property in Second Life is a good way to make serious money.

Second Life features a powerful and flexible item building tool which basically allows you to create everything you could possibly imagine (with some logical restrictions) and then use it as an item in game. Obviously this takes a bit of skill and some failed attempts before you’ll be able to make some nice items that you can sell. In addition, if you’re familiar with programming and scripting, you can enhance these items by giving them behaviors. For example, you can create a ball using the item editor, then slap a script to it that makes it bounce or swirl around just for fun.

Now, let’s face it, most of us are not particularly skilled at design and/or scripting, as the majority of Second Life players simply play for their entertainment. But if you manage to skill up a bit and try out a few designs of your own, who knows, your items might sell like lemonade on a hot August afternoon, earning you a nice profit. You can also ask someone skilled in design and scripting to create an item for you, either freely or for a fee after which you can sell that item for your own profit. Last but not least, a common practice that translates into good real money is buying cheap (or getting free) items and reselling them for profit.

A market also exists for training people in the virtual world for real life skills like plumbing, wiring etc. Making avatars also means big money. If you can perfect the art of making customized avatars, it will not be difficult to find buyers for your work. On an average a well made customized avatar can sell for as much as $2200 Linden dollars. So even though you are leading a virtual life the money that you make is all too real.