Whether Nero fiddled whilst Rome burned is open to debate, but the lack of anything economy related coming out of Linden Lab is making me uneasy.
I've been hoping for some sort of land initiative, some pricing changes, some impetus and oomph and all I see is a blog that says "Coming soon, a new blog".
I have no idea how everyone's rentals are doing, I'm not one to say that my rentals are any barometer of the market as a whole, I'm too small for a start.
However, mainland is flourishing, I'm buying more mainland. Estate land isn't flourishing, I won't be buying more. I can pontificate on the reasons but I don't think it's really rocket science, mainland is cheaper.
I'm seeing more commercial ventures and less residential, not to say I'm not seeing any residential rentals, I have met some very nice Germans this week. I was aided and abetted by Pompeja Rossini whilst finalising the terms of the rental as my translator hud was only making so much progress, but they were keen and enthusiastic.
The problem with estate pricing versus mainland is that Linden Lab have their hands tied somewhat. I still don't think there's value in the USD$100 difference in tier fee, estate controls are great, the extra control is great, but it's not USD$100 great. However, I'd wager that the average mainland sim generates at least USD$295 in tier revenue due to the tier structure, so it's not an exact like for like comparison. I'd still like to see estate tier reduced.
Where we do have more of a comparison is with class 4 sims and I can't for the life of me understand why an end to grandfathered status isn't in sight. I definitely can't see why grandfathered status is kept on transfer, the reason for grandfathered status was to prevent those who had invested from jumping ship when tier pricing changed in 2006. When a sim is transferred that reason has evaporated.
Class 4 sims of course offer lower performance, so there is an argument that they shouldn't be the same tier price as a class 5 sim, but there should be some middle ground here and they shouldn't still be USD$100 cheaper once transferred, maybe USD$50.
However a two year plan to end all grandfathering, would that be so difficult? Unlike Linden Lab I don't agree with springing heinous changes on people, but to tell people that for the next four quarters class 4 sims will be gradually phased out and that tier payments will rise USD$25 a quarter would surely not be a bad thing, there's plenty of notice there. They could also say that transferring a sim ends grandfathered status right away.
Linden Lab just aren't very creative when it comes to pricing. Why aren't they offering existing estate owners a lower setup fee to try and encourage them to expand? I certainly wouldn't complain if someone who already owned ten sims got a better setup fee than me, tier is the long term cost, not the setup fee.
Why don't they spread the costs over twelve months and charge people USD$395 tier, the setup cost would end up being USD$1200 this way, they could disallow resale during this period so the only option would be to abandon, they've surely got some spare hardware after the Openspace fiasco so I think this is feasible. This may tempt people to invest in islands again.
How about offering lower tier for a few months for new purchases? Sure this would piss people off but business does this all the time, plenty of companies offer deals to new customers, the creative ones find ways of offering deals to their existing customers too, that way you keep them happy. They offer you X if you take out Y, so Linden Lab could say existing owners can buy homesteads at half price for the next three months, but the deal isn't open to new customers.
I'm hopeful that the recent survey is a sign that Linden Lab are taking inworld business needs more seriously, it may just be that they're looking at more ways to take a slice of the pie, but whatever they're upto, they need to make some noise.
- Ciaran Laval's blog
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Re: Its all gone quiet over there
In what sense is mainland flourishing? Prices are flat, demand is steady. There have been a number of big improvements to the quality of mainland, ad farms, cutting, nautilus, Blake Sea etc. I'm buying more mainland too and have started trying to run estate type deals on mainland sims but none of this stuff seems to be altering demand. I'd hardly say mainland was flourishing. If anything it's steady.
I suppose some might counter this by claiming the entire SL economy is shrinking and so mainland holding steady is really a win. But looking at the numbers I'm not seeing any kind of significant economic shrink in the last 3 or 4 months either.
Re: Its all gone quiet over there
I was talking from my perspective Elanthius, 100% of my mainland rentals are occupied to such an extent that I'm buying more, usually when they fill a couple leave, that hasn't happened recently. I was talking about the rental market not the sales market.
The last set of economic stats suggested an almost insignificant shrinkage in most areas.
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[...] Original post by Ciaran Laval [...]
Re: Its all gone quiet over there
You're right that some changes need to be made but I think they need to be more innovative than making intro' offers or making tier payments even more complex than they already are.
Re: Its all gone quiet over there
Such an agreement on estate land would lead to higher costs for Linden Lab but would almost certainly be popular with some estate owners and tenants, in such circumstances however Linden Lab would become the estate manager by default over time which is something that I don't think they'd want.
Re: Its all gone quiet over there
I don't think there is a requirement to own mainland for a Premium account. I have never owned land and have a Premium account.
Re: Its all gone quiet over there
No there isn't, but you are able to own 512 meters of mainland without paying more then you alreay do with the monthly premium fee. Helps you get more out of what your already paying.
Re: Its all gone quiet over there
When they first anounced they would start allowing the "sale" of estate parcels, I thought that was what they were planning to do. I thought it was going to be like a built in rental system where teir fees where charged by LL and paid to the estate owner. Obviously I was wrong. I totally agree with that idea though. It would end a lot of problems and make life much easier. It might even help justify the extra $100 bucks we pay. Like Ciaran, I've never felt the tools were worth 100 more. In fact I think the tools just allow us to handle the customer support for our renters so that LL doesn't have to deal with them.