Should Your Business Invest in the Metaverse?
Web3, crypto, NFTs, decentralization, blockchains, the Metaverse—We are all hearing a lot of buzz about these digital currencies and platforms as of late. And you have most certainly heard several conflicting definitions and opinions on these topics, as well as the future of conducting business using digital currencies.
During these challenging times, certain industry leaders see the growth of Web3, the metaverse, and cryptocurrency as signals of the dawning of a powerful new digital economy untethered from federal regulation.
However, many digital experts remain unconvinced that Web3 will take off, particularly in the wake of recent cryptocurrency market crashes, as well as prior controversies regarding Meta Platforms, Inc. (formerly Facebook ), the leading corporation focused on building out a presence within the metaverse.
Rather than explicitly endorsing or condemning the metaverse, we are going to define what exactly the metaverse is, and help small businesses determine whether now is the right time to invest in this new digital platform.
What is the Metaverse?
The metaverse refers to an online, virtual reality in which people can use avatars to socialize, play games, and conduct business. As an emerging sales platform, the metaverse does have the potential for sales growth, but currently, the business conducted through the metaverse primarily targets individual buyers with intangible digital assets.
The two most lucrative markets within the metaverse are digital real estate properties and NFTs (non-fungible tokens). Despite their intangibility, metaverse real estate properties and NFTs are assets that cannot be replicated from their original forms. Sales of metaverse real estate hit $500 million in 2021, signaling the vast earning potential for businesses looking to break into the market.
What are the Potential Benefits of Selling in the Metaverse?
Even if a business lacks high-value digital assets to sell to consumers, the metaverse still presents several growth opportunities. The metaverse offers smaller businesses plenty of advertisement and marketing opportunities in the form of digital events and showrooms.
Virtual events hosted by businesses within the metaverse, such as concerts, screenings, and social gatherings operate in much the same way as they do in the real world and can open the door for digital merchandise sales in addition to building brand awareness with a growing audience. Similarly, virtual showrooms can help potential buyers in the metaverse understand the products and services your business offers, both in the physical and digital worlds.
What are the Potential Risks of Selling in the Metaverse?
Thanks in part to recent, high-profile, and highly lucrative earnings from the sale of digital assets, businesses have begun to adjust their sales strategies to further invest in Web3 assets and platforms, such as the metaverse.
However, as an emerging technology, the metaverse has yet to reach the mainstream and the user base is currently a fraction of those who regularly visit Web2 platforms such as Twitter and Facebook. If the metaverse does not catch on within the coming years, a small userbase can lead to market oversaturation.
Among the competition, the businesses that will thrive within the metaverse will be the organizations that possess an innate understanding of the digital marketplace and can regularly offer valuable assets to a targeted base of consumers. The metaverse does not represent a new digital gold rush and cannot guarantee success if businesses are not willing to put in extra effort to invest in unique, valuable assets, understand their market, and take extra security precautions to protect said assets.
Unsure if the Metaverse is Right for Your Business?
We understand that in these uncertain times, businesses are eager to find ways to branch out to new audiences and explore alternative avenues to build revenue. However, to leverage digital platforms such as the metaverse, business leaders need a strong sales plan empowered by market insight.
Investing your organization’s time and resources into any new and emerging technology or platform is, at some level, a risky venture. By analyzing your organization’s financial health and sales processes, an outsourced sales manager can help you determine whether your business is well-equipped to invest in platforms such as the metaverse. All at only a fraction of the cost of a full-time hire. Get in touch with our office today to learn more about how we can help your organization explore new growth opportunities.
If you have any questions, call Sebastian Lane Consulting at 443-534-6783 or email us at jesse@sebastianlaneconsulting.com to schedule your free consultation.