Weblo.com: Part MySpace, Part Second Life, Part Tulip Craze

Feb 25, 2007 07:02:05

CHICAGO – In researching Montreal-based Weblo.com, it is hard to tell if the new online social network that markets virtual assets based on actual property represents the beginning or the end of the second wave of the Internet boom. Perhaps it is a little bit of both. Weblo was founded last fall by Montreal-based Internet and gaming entrepreneur Rocky Mizra. On some accounts, the company’s business model is pioneering how social networking sites can generate more revenue for publishers and members alike. On other accounts, it can be interpreted as a 21st century pyramid scheme. It works like this: Weblo sells virtual rights to a physical property (Chicago went for about $150 and California went for more than $50,000), people (including some tasteless Anna Nicole Smith aliases) and other Web sites. Owners currently are making nominal income charging “taxes” to individuals who secure secondary property rights to addresses within those virtual municipalities. Owners are also making some money from advertising revenue based on traffic to those properties. While the “mayor” of Chicago is currently earning only pennies per day in this virtual world, significant profits are being made through the resale of these virtual properties. Here is a breakdown of notable property sales from Weblo provided by the company as of Jan. 31, 2007. Cities sold worldwide: 5,228 U.S. cities sold: 2,768 Highlights of State Purchase Prices Paid United States California: $53,000 Texas: $23,328 New York: $19,354 Florida: $18,047 Michigan: $10,201 Massachusetts: $7,417 New Jersey: $8,829 Canada Ontario: $16,900 (original buyer paid $11,550 and made a $5,350 profit) Quebec: $7,027 British Columbia: $3,674 Alberta: $3,035 Nova Scotia: $1,149 City Flipping For Profit Seattle: bought for $40, sold for $2,000 ($1,960 profit) Lincoln, Neb: bought for $15, sold for $800 ($785 profit) Vancouver: bought for $118, sold for $503 ($385 profit) Atlanta: bought for $21, sold for $250 ($229 profit) Detroit: bought for $44, sold for $250 ($214 profit) Austin: bought for $34, sold for $200 ($166 profit) Denver: bought for $28, sold for $250 ($222 profit) Washington, D.C.: bought for $33, sold for $99 ($66 profit) Empire State Building: bought for $1, sold for $250 ($249 profit) Chateau de Versailles: bought for $1, sold for $30 ($29 profit) Provinces Earning Money Canada Quebec: $844 Ontario: $762 British Columbia: $277 Alberta: $106 Cities Earning Money Montreal, Canada: $56 Newcastle, Australia: $27 States Earning Money California: $265 Florida: $151 New Jersey: $94 Texas: $195 Money Made in Australia New South Wales: $121 Queensland: $39