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    « Hubris | Main | The Hole in the Lindens' Vision »

    November 22, 2008

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    Prokofy Neva

    So to add to the math here to make the distinction about the 1024 freebie concept:

    1. If you add 512 to the existing 86,000 accounts, you lose $130,344 in tier per month. If there are only 82,000 accounts, it's $750,000 in tier (they've dropped further, and some are annualized or with 4096 free for life). Therefore, it doesn't make sense to give 86,000 paying customers a gift that costs you $750,000-$130,000 US per year.

    2. If you enable free accounts to go on land of 512 or 1024 size, you only lose some servers, and create a setting where, within 90 days, you will have lots of new real tier payers. They aren't likely to get more than a few thousand people doing this, so they only need about 20 servers to be offered for free. That's revenue they might make $3900 a month on if it were offered for tier, plus the purchase price, but in the current situation, they can't put those 20 mainland servers out and sell them without a) glutting the over-saturated land market further or b) seeing them not even get any bids. 20 servers put to use giving newbies free land that they can't hustle and flip as they used to isn't a loss, because they already have thousands of newbies flying around using resources anyway.

    Ann Otoole

    I think we will see the very popular idea to allow premiums to buy at least one Homestead region without owning a normal region come to pass pretty soon. Otherwise I doubt they would have named it "Homestead".

    If they "flatten tier" it will be from the bottom up meaning an overall price increase. You wanted it you got it. 200 a month turns into 300 a month right there.

    People should be careful about what they wish for.

    Prokofy Neva

    Yes, I saw that. They may very well do that, except...it's a way of forcing people to add $9.95 to an already more expensive product of $195.

    Oh, sure, it will flatten from the bottom up, too, I should have mentioned that. They will say it's only fair that land barons, far from getting a bulk discount, pay a little more because they earn money from SL, and they will incite the forums to demand that.

    It's been said by Ciaran and others that as soon as the Lindens let people direct-buy opensims without already owning an island, they will kill island rentals. Perhaps. They are already only half filled anyway.

    Prokofy Neva

    *product of $125

    OpenWhat

    I think there is no real reason to have a premium account at the moment what so ever except if you want to buy mainland. The stipend is silly because you can buy linden anyway from LL and even choose your exchange rate. So what you add to a premium account are features which have a value to the user( features or status ) which don't you cost anything or very little but add enough value to make is desirable. A view thinks which come to mind are having a higher group limit , enable or disable group messages temporarily ( like you disable your ring on your cellphone ), choose a custom last name, access to certain areas. Those I think are very easy to implement. Make is mandatory to use voice. Have more attach points on your avatar or allow to attach multiple items at the same spot ( These are sure not easy to do but would add quite a value I think ;) ) Well the point is add features to the premium account that can't be bought otherwise and scratch the stipend all together.
    As many have noticed the ability not be able to buy enough L$ in the first 30 days is ridiculous. During this time you need the most to buy/rent land and outfit your avatar and you run around across all SL to shop.
    I agree with Anne , next year in July you will see that the (overpriced) Homestead is going to be sold to individuals without the need of having a fullsim as a requirement. Excuse might be to make it available to boost LL sales because of the RL economy downturn.

    Ciaran Laval

    Yeah let premiums buy homesteads but let them pay tier at USD$125 and let estate owners get them for tier of USD$95 and you have a situation that isn't so traumatic and actually respects inworld business. I'm not convinced that the Lindens have the creativity or desire to think of inworld business though.

    The name thing is interesting, I'm not sure why it's so expensive. The important thing about your avatar isn't the name, it's the avatar key. I'm not sure exactly how it works but I know that in Active Directory the account has a security identifier, I can change the name of an account to anything, I change names when ladies get married and I don't have to do a shed load of extra work changing everything because the name isn't important, the security identifier is, the security identitfer is very similar to the avatar key in theory.

    People could have the option of forsaking the stipend or forsaking the free tier in exchange for having their own name. I don't see why it should cost USD$50 a year for a custom name but there you go.

    I agree that ideas such as extra free tier, more groups or increased stipend are non starters, that's a cost issue for Linden Lab. I guess they could offer a higher priced premium membership that offers extra stipend and tier but the books would have to balance so you'd be as well just buying those features as and when you need them.

    Ciaran Laval

    You're right Prok, Island rentals aren't what they once were but there are still plenty of people out there who want to rent estate.

    Some brave moves may have to be taken by estate owners, some mergers may be required. This world however doesn't lend itself to being able to merge with another landlord easily, which is a great shame but the whole way we have to trust each other really doesn't lend itself to being able to have a true partnership with another owner.

    Prokofy Neva

    OpenWhat, stop posting anonymous posts here or you will be banned. The rules here are that you must provide a recognizable first and last SL, RL or bloggers' name. You get one warning, and then you are banned and unpublished after that.

    Prokofy Neva

    The idea that "you don't need a premium because you can buy on the LindEx" is true, but geeky and literalist and costing the Lindens and inworld businesses customers, for clinging to it so fiercely. Logic doesn't explain everything.

    For first-time users, the LindEx is unfriendly. When I go to a foreign country, I give my passport and a $20 US bill at the airport to a kiosk window, and I get back $20 worth of the local currency. I don't have to study currency markets and exchanges, operate strange levers, try to discern value and whether I should make something called a "market buy" etc etc. I just buy the currency. Later, if I get into it, I might spend a lot of time buying at this or that exchange, etc. etc. but not as a first-time arrival, and as a tourist. It's stupid to expect people to be different in a virtual world.

    So the buy-in has to be simple, and come in a packet. It has to be worth what you pay, so less than $9.95, or give 680 Lindens for that $9.95, which is what they are actually worth.

    The constant crabbing that people should go on the LindEx may make the crabbers feel morally superior and very geekily smug and in the now, but it doesn't sell accounts. People, intelligent college-educated, even other geeks like yourself, will not entrust their credit cards to something so perplexing and strange as a "currency exchange". Other games and worlds just have packets.

    It's especially regarded to take $72 US on a credit card, then not let the person buy currency on the theory that they are a fraud risk. Their $72 went through and was accepted, and now they can't spend $3.65 to buy 1000 Lindens, they are too much of a risk. Please.

    Buying currency has to be something that you click and get instantly without having to study or understand anything.

    Ric Mollor

    ----Quoting Prokofy-------
    Buying currency has to be something that you click and get instantly without having to study or understand anything.
    --------------------------

    Occasionally I examine the prepaid gaming cards available at mass market US retailers to see who's selling what and how it is being marketed.

    In the past week saw Target's selection. At least 30 different cards with many of them 'multi cards' that provide currency/points in a spectrum of games.

    No sign of anything with a SL logo on it and certainly no Second Life specific card. There *may* have been a card redeemable for Lindens but if so that information was buried in the fine print of the reverse side.

    Card family with the best product placement? (eye level, middle of rack)

    IMVU

    Card with the most image variations?

    WoW

    Why has LL missed the boat so hugely on this? There are even IMVU and Nexon cards in every 7-11 that I've checked.

    melponeme_k

    I didn't see this entry when I commented on the next one.

    SL completely slipped by not making fees a requirement from the get go. Anything they do now is sure to cause an explosion.

    Premiums should be an asset for them, they are a business after all is said and done. They should be a sure and steady cash flow with benefits. I don't see how they can do that now at this late date after the cow has left the barn. Unless no new account can be free, and all prior free accounts are grandfathered with all their existing privileges. I don't know, I don't see that happening. Premiums will probably be dropped or completely destroyed in some way.

    I looked into Entropia, and it is free as well. But they seem to add in perks if a user buys a large amount of their currency. I don't have a PC so I haven't joined there.

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