[Update] A big welcome to everyone from the Second Life Herald. I guess I should give myself a gold star as I’m now ‘The Infamous Cardie Mahoney’ (my emphasis). You should all explore the blog a bit more, and then realise that I do some modelling as well, and beyond the samples they’re all in the members section. Enjoy (and do leave a comment)…
So the prices for island purchase and ongoing maintenance have went up to $1675 outlay and $295 per month to service the 16 or so acres you get. There’s a lot of comments on why the prices are going up and if the FIC of ASC is really back in force. I was going to skim over this issue, after all I just lie back (or on my side, or in the shape of a scorpion) to cover the rent, but actually this is going to have a direct consequence on my business.
With the island tier going up, the owners of new islands building clubs (and there are a lot of them out there planning, building, and trying to hire me) are going to need to bring in more money. So they’ve got a few simple things they can do. They can get more girls in (which means we’d have to work harder) or they can simply raise the percentage that they take from our fees. Which is more likely. So if I was with one of those employers, I’ll get less take-home, which means I’m going to have to work harder and increase my turnover (which for sure will drop the service level) or I’m going to have to raise my prices across the board.
Oh but the islands are grandfathered, and most clubs are on mainland. You think competitive advantage will keep prices low? More like everyone will see they can still get in the punters for more money. For a brief moment we’ll have more spare Linden, and then… You can bet mainland tiers will rise shortly as well, and then all the clubs are going to face this dilema. And how long will the grandfathering work?
Without interest rates to manipualte the Linden Currency (such as Greenspan has on US Interest rates), Linden Lab don’t have a huge armoury of ways to slow down the economy. If they want to keep to the artifical 275L/$1US then they need to reduce the Linden available. Which means giving out less money in Stipend (which they’ve done), and increase the ‘cash sinks’ in the world – thats the things that take up money for no in-game rewards. Islands are the first cash sink to feel this, we’re going to see more in the future, count on it.
So to drive it home, Linden are having a direct effect on the escort market, and driving the prices up. They never talk about sex in all the PR and Media, and now they’d prefer it if you stopped spending money through the Lindex to stop you spending it on me. Thanks boys.