As we move into this exciting new era of virtual worlds and digital currencies, many have begun to wonder how to get involved in the Metaverse. start a Metaverse company.
But before you start a Metaverse company, it is important to conduct a market analysis to analyze various factors such as your entry strategy, choice of Metaverse platform, and much more. In this article, we also dive deeper into the benefits of starting a Metaverse business and how you can start a business in the Metaverse.
Why Start a Business in The Metaverse?
Individuals have been making purchases offline by visiting stores and events for quite some time. With the rise of eCommerce platforms, many buyers switched to the internet to make purchases. There are around 2.14 billion digital buyers worldwide. The eCommerce space consisted of 2D interfaces with prices, static images, and product listings.
The Metaverse aims to take this further by creating an immersive virtual space for businesses to engage with their customers fully.
The Metaverse offers a new way for businesses to connect with users worldwide. Most metaverses have their in-built virtual economies, where users can purchase digital and real-life products, thus making it a lucrative opportunity for different businesses.
Big name brands such as Gucci and Nike have already developed their metaverses where customers can enter the Metaverse and play games, browse digital accessories, and make purchases for real-life items. According to Nike, nearly 7 million people have visited Nikeland so far, thus showing the potential of the virtual space.
Tech giants such as Meta are also working on creating virtual workspaces where individuals can attend conferences, attend training sessions, and much more. As we move to an era of remote workspaces, the Metaverse will play a significant role in reshaping how individuals interact online.
For example, you can use a VR headset to enter the Metaverse to step into a virtual conference room, and after the meeting, you can enter your virtual office to conduct day-to-day tasks. The Metaverse offers a chance to interact without barriers and to establish borderless communication. This can highly benefit Metaverse businesses looking to fully harness this new digital revolution’s potential.
How To Start A Metaverse Company in 4 Steps
Follow the steps below if you’re wondering how to how to start a business in the Metaverse:
Step 1: Create a Customer Persona
Identify the type of customers you’re trying to connect with. A customer persona contains various elements such as demographics, spending power, interests, preferences, etc. This will help you determine the correct strategy to connect with your customers. For example, if your customers love sports, creating a sports game-based environment within your virtual store would help you enhance conversions.
Step 2: Understand the Virtual Space
Many businesses are still not familiar with digital currencies and 3D environments. Conduct extensive research to learn more about the different benefits of each Metaverse platform. For example, Decentraland and Sandbox are based on the Ethereum Blockchain, whereas the Pavia metaverse is based on the Cardano Blockchain.
The Ethereum Blockchain is known for its high ‘gas’ (transaction) fees that customers must pay for minting their NFTs. This may be a barrier to expensive purchases, so it may be worthwhile to consider other platforms instead. Each platform has its in-game currency, which can be exchanged for real-life money on different crypto exchanges.
Step 3: Create Different Marketing Channels
Many businesses have already been exploring various marketing channels to promote themselves. However, marketing in the Metaverse will be difficult as businesses must create awareness for their virtual spaces.
A holistic Metaverse business marketing strategy would be required to produce engaging content to attract the right audiences. It is recommended to ensure that you have a good digital presence before you enter the metaverse.
Step 4: Begin Your Virtual Journey
The steps that a business has to take to get started depend on its Metaverse entry strategy. For example, listing on a secondary marketplace such as Opensea would be a good strategy if your company plans to create and sell digital assets.
However, if you’re planning to create a virtual space for your customers, similar to Nikeland, there are several steps that you’d have to take.
To set up your virtual space, you must select a platform to develop your virtual world. Platforms such as Roblox, Sandbox, and Decentraland have a large customer base and would be an excellent place to create your virtual space.
Next, you can purchase a piece of land on the platform. Land can be purchased directly from platforms during auctions or through secondary marketplaces from other land owners.
Start building your world. Each platform offers development tools to begin shaping your environments to interact with their customers. The Metaverse is about experiences. If you start creating an engaging space with fun games and more, your customers will want to interact.
How Can Businesses Find the Right Metaverse Platform?
Metaverse Businesses must consider different variables to determine what platform would be the right choice for the company.
Here are some variables to look out for:
- Ease of Payments: The platform you select should have an in-game currency that is easy to obtain and exchange
- Accessibility: Is the platform only accessible to VR users? Since most individuals still do not have VR, a platform that users can access through a PC, mobile, or tablet would provide greater reach and exposure.
- Platform Traffic: As mentioned before, platforms like the Sandbox already have many daily users. It is recommended to opt for popular platforms to reach as many potential customers as possible.
- Integrations: The platforms should also be compatible with chatots and CRMs for business owners to manage customer data and provide quality customer support.
How Can Metaverse Help Businesses
Mark Zuckerberg has called the metaverse “the social media of the future.” The metaverse market is expected to reach $824 billion by 2030. Since a large segment of a business’s audience will be present in the Metaverse, companies cannot ignore the opportunities this space provides.
Here are some of the reasons why you should enter the Metaverse as a business:
- Connect With Global Talent: Employees can use avatars to interact within virtual spaces and work remotely. An employee’s location does not have to be a limitation anymore, as they can put on a headset and step into a virtual office.
This can help businesses access top-tier talent, which improves productivity. The Metaverse allows companies to design their own virtual spaces, so you can make your virtual office as engaging as you’d like.
- Setting Up Virtual Stores: Businesses can connect with customers virtually to sell virtual and real-life products. Digital asset creation can be an incredible revenue stream for businesses, as evidenced by Adidas’s Originals, which sold out minutes after their launch. The sale netted them around $23 million from digital assets.
Businesses can also list products for sale in secondary marketplaces such as OpenSea to sell their digital assets. This option is perfect for companies not looking to set up their Metaverse. By listing an NFT collection for sale on secondary marketplaces, Metaverse businesses can test out demand for their products.
- New Customer Experiences: By utilizing exciting technologies such as AR, businesses can allow customers to test out real-life products virtually to see how they would look before they purchase them in real life.
For example, an interior designing Metaverse business could show customers how certain furniture would look within their house. This interactive method enhances customer trust, leading to higher conversions for businesses.
What Kind of Business Is Mod Squad Metaverse?
ModSquad offers community management, content moderation, and social media handling services to different businesses. Formerly known as Metaverse ModSquad, the company has helped moderate and promote events on various metaverse platforms such as Second Life’s Orientation Island, CW’s Gossip Girl, and more.
The company has identified a unique niche they could work in, i.e., moderating user-generated content. When users are allowed to explore their inner creativity, there has to be some level of moderation to ensure a positive experience for all users involved.
Their business model is unique because they have a team of remote moderators from all over the world. The Metaverse presents an extraordinary challenge for moderation. Since there are users of all ages, moderation is required to avoid creating toxic environments.
ModSquad has created Cubeless, which offers customized privacy and data security solutions to provide complete coverage for businesses. Since the Metaverse is still relatively new, there are a lot of unknowns, which is why it is best to reach out to moderation experts to ensure your customers have good experiences.
Since the Metaverse is rapidly evolving, there are numerous new opportunities for businesses to earn within the virtual realm. We hope this article has helped you learn how to start a business in the Metaverse.
- How Can Metaverse Be Used in Business?
Businesses can utilize the Metaverse to connect with customers in an immersive virtual environment by developing interactive environments to interact with their customers.
- How Can Businesses Buy Land in The Metaverse?
Businesses can buy land through marketplaces such as OpenSea or the metaverse platform’s website.
- How Can Businesses Sell Their Products in The Metaverse?
Each Metaverse platform has its in-game currency that users can use to purchase products. Businesses can list their NFTs for sale within the platform marketplace on other marketplaces.