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

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
Mirza.
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