Monetisation in the metaverse

There’s been a lot of talk around the ‘metaverse’ and what it constitutes (or doesn’t), with many equating it with a type of video game or virtual reality. This latter definition is close – the metaverse is a virtual world that’s both persistent and shared. The rules don’t change depending on the user, and the metaverse is available to anyone with the means to access it.

As the metaverse grows, so do opportunities to participate in its virtual economy – and the options are endless. From digital collectibles like non-fungible tokens (NFTs) to cryptocurrency, avatar outfits and virtual-only events, the metaverse offers unique, multifaceted monetisation avenues that go far beyond simple in-game purchases. For creators, brands and the like, the metaverse is rewriting the rules – and broadening economic prospects.

The creator economy

Fortnite and Roblox are paving the way in metaverse-based monetisation. Both online gaming platforms share several commonalities, including the ability for players to develop and sell their own experiences, the use of virtual currency (V-Bucks and Robux, respectively) and custom wearables, such as ‘skins’, outfits and accessories, for digital avatars.

Fortnite and Roblox contribute to the creator economy in a myriad of ways – streaming has been a leading revenue source for players, who can record their in-game experiences and upload them to YouTube or Twitch. The real money then comes from views, subscriptions and affiliate advertisements. But creators can offer subscriptions in the metaverse, too – Roblox, for example, allows them to offer private benefits for a monthly fee.

A developer called Jandel, for instance, created a Roblox game called Grow a Garden. A relatively simple concept, players tend to their plants, sell them and then buy even bigger plants – and the cycle continues. Despite its simplicity, or maybe thanks to it, Grow a Garden broke Roblox’s record for most concurrent players, reaching nearly 11.7 million. Jandel, in turn, amassed millions of TikTok followers and YouTube subscribers in the process, earning him additional income, with his videos featuring footage of game development, teasers and fan shoutouts.

Fortnite recently announced new monetisation opportunities on its platform, too, encouraging creators to sell in-game items and advertise these (for a small fee) to boost engagement-based earnings. These features officially launch in December and as of September, Fortnite had paid out $722 million to creators on its platform.

Virtual ads and experiences

While individual developers are capitalising on the metaverse’s capabilities, broadcasters and brands shouldn’t overlook similar opportunities. Broadcasters can stream content to their existing channels, covering metaverse-based news and updates. Or, they can host live virtual events, such as festivals, trade shows or workshops, and charge for admission.

Many well known, international brands have already embraced the metaverse, with Nike and Gucci offering virtual Roblox storefronts (Nikeland and Gucci Vault Land, respectively) and Adidas and Coca Cola selling NFTs. The metaverse is also ripe for immersive brand activations, such as product launches and pop-up events, as well as virtual, in-world advertisements. Gucci previously hosted the Gucci Garden Experience – based in a virtual version of Florence, Italy – that attracted over 20 million visitors.

Similarly, Decentraland hosts an annual Metaverse Fashion Week (MVFW), where avatars walk the runways, sporting digital wearables. Previous editions have included Coach and Tommy Hilfiger, and MVFW also encourages designers and fashion students to submit their own ideas for a pretty sizeable cash prize. Free to enter, the competition awards $10,000 to the winner and $2500 to two runners-up. The catch: the reward money is doled out in MANA (digital currency), but it’s easy enough to transfer.

Phygital: The physical-digital crossover

Though the metaverse is rising in popularity, we’re a long way off from digital domination. The real world takes precedence, yet brands are beginning to toy with ‘phygital goods’, or physical items that include a digital counterpart when purchased. Other phygital goods include wearables that are embedded with digital technology, such as smart watches or the Ray-Ban Meta glasses.

Ray-Ban’s Meta glasses incorporate the Llama 4 AI model, with two front-facing 3K cameras and a charging case akin to Apple’s AirPods. Now on their second generation, the glasses link to your smartphone, answer to ‘Hey Meta’ and send texts or make calls on demand. They also include five built-in microphones and two temple-tip speakers that provide immersive audio. In short, Ray-Ban Meta glasses bridge everyday life with augmented reality.

Monetisation in the metaverse: What comes next

Though the metaverse presents infinite monetisation opportunities, it also comes with its challenges. The metaverse, in its truest sense, is supposed to be a single, virtual place, but today’s metaverse is fragmented, with little interoperability between platforms. To properly monetise en masse, virtual environments must also be able to support millions of users, all of whom need access (ie. hardware and software).

The metaverse is also a relatively lawless land, with rules around digital ownership and taxation unclear – and still dependent on physical location. It also raises concerns over safety and security, particularly when minors are involved. Roblox recently came under fire for the actions of its users – some were child predators, and others were supposedly ‘predator hunters’. While this doesn’t have a direct tie to monetisation, these incidents have caused government officials to question whether Roblox should be shut down altogether, thus impacting content creators and others using the platform to earn.

The rise of AI presents more of an opportunity than an obstacle and raises questions over its eventual impact on virtual creation and monetisation. For now, the metaverse is a decent place to make money – if you’ve got the tools and tech to do so.

Check out our November Signal here!