Q3 closed on a high note with an unusually strong September. Talk 11/12 w/Zee Linden
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HoneyBear Lilliehook
Owner, The Mall at Cherry
Join date: 18 Jun 2007
Posts: 4,500
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11-13-2008 10:33
From: Zee Linden I'm sorry. You're right. It does appear that way. We certainly didn't do this on purpose. We should not have re-launched open spaces with the full prim count and without any restrictions. It created a situation - if we didn't change it - where we would not have been able to continue to invest aggressively in improving Second Life. So we had to make the change. And you can imagine this was not easy for us to do. Then when we made the change, we listened to the feedback and changed it again trying to address the various types of residents who were affected. We hope that we have found a way to address the issues of most people with the final changes that M announced. The Lab's position - Didn't do it on purpose. Should have not have re-launched. It created a situation. We had to make the change. Our position - We're aware you didn't do it on purpose. No, you should not have re-launched, but you did. Yes, it created a situation that you need to change...ONGOING. Why OH WHY can you not grandfather those OS sims already created? By doing so, you would foster the support of your existing landowners, rather than receiving this extreme disapproval. We would then encourage the growth of the Lab, instead of trying to find ways of getting away from you. We would raise you up as a shining corporate example of how a "good company" treats its customers - instead of telling everyone we know (and oh yes, many of us work for those very corporations you're hoping to cultivate) that LINDEN LABS CANNOT BE TRUSTED.
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Harmony Deschanel
Registered User
Join date: 4 Jan 2007
Posts: 32
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11-13-2008 10:48
Since we're discussing the economy ... is there something going to be done about mainland and premium accounts or should we just expect to see the trend that has been happening all year long?
Dec 2007 shows 93,219 premium accounts and 185 million m2 of resident owned mainland
Oct 2008 shows 81,479 premium accounts and 227 million m2 of resident owned mainland
We've seen a 12.5% decline in the number of premium accounts in 2008 while seeing an 18.5% increase in the size of mainland.
This has lead to the mainland real estate economy being driven into the dirt. There are times that Auctions for recycled abandoned land is going unbid on because your starting prices are so high, we'd have to buy it at a loss just to be able to resell it.
Be proud of all these other numbers but you've totally screwed up the mainland real estate economy... When are you going to realize it's not the initial cost of land that keeps people from owning mainland .. it's the price per month they don't want to pay. Reconsider how you charge your tier fee and get that part of the economy back on it's feet please.
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Proxima Saenz
Registered User
Join date: 22 Jun 2008
Posts: 107
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11-13-2008 10:52
Really.. I dont understand why there are still people out that are willing to pay for a premium account, you get nothing for it. Mainland is a mess and the support system isnt that user friendly at all, so are the lindens on the phone.
Linden Labs needs to make it attractive to become a Premium account holder, otherwise it looses its income.
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Wildcat Furse
Registered User
Join date: 2 Jan 2008
Posts: 140
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11-13-2008 10:52
From: Zee Linden Got it. Us to. We've got a new CEO, a new SVP of Network Operations, a new Chief Product Officer & we've hired lots of new people all over the company - more than 100 in the last year. We'll be over 300 people by the end of the year. I'm seeing lots of progress across the company. Yes the clock is ticking & we're working hard. We've got a long way to go. But we've come a long way since 1999 and I believe we can do it. Zee, thx for the information, but listing here the number of 'overhead' you employed, only creates more 'negativism & frustration' and the 'I believe' statement doesnt satisfy my hunger neither. I want to see the 2009 businessplan! Clear actions based on FACTS & FIGURES, so we can decide our own investments for 2009/2010. M, To my opinon you really need a good spokesman or woman (example : message linden) and leave all other LL staff out of those blogs here. best regards, Wildcat
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HoneyBear Lilliehook
Owner, The Mall at Cherry
Join date: 18 Jun 2007
Posts: 4,500
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11-13-2008 10:54
From: Proxima Saenz Really.. I dont understand why there are still people out that are willing to pay for a premium account, you get nothing for it. Mainland is a mess and the support system isnt that user friendly at all, so are the lindens on the phone. Linden Labs needs to make it attractive to become a Premium account holder, otherwise it looses its income. Oh, haven't you heard Proxima? Premium accounts are "insignificant" to LL's bottom line, according to M Linden. So no, our $9.95 a month or whatever won't impact them at all.
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Novellium Siddeley
Registered User
Join date: 30 Oct 2007
Posts: 3
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11-13-2008 10:58
Hi Zee,
For the first time since this price/land adjustement blog, you are one who interracts with the residents and provide some insight...Thank you and well done
We have 120 sims in Serena Estate so of course it will affect us and our residents. I also noted from your previous posting that the price increase is set in stone. I am not one to argue about your decision as you must have your commercial reasons behind this move and your own strategy.
These times are hard on the people due to the unfolding recession that is due to last the whole of 2009. As a commercial venture and as a show of concern for your clients, wouldnt you be able to increase your prices in 3 stages instead of 2? couldnt you also consider that from june to september there is a seasonnal slow down in the in-world economy due to summer, holidays etc.. I would request you to relay to your board of Directors a request to soften the price adjustement in more then 2 stages and if possible avoid the slow months so not to damage the SL economy and also show that you care for your residents. It would also make commercial sense to not to damage your client base. It definately makes commercial sense to increase prices AFTER the seaonal slow down..and NOT BEFORE.
I hope this request is reasonnable and can be implemented quite easily.
Thank you again for engaging with your residents. Novellium
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Richy Nervous
Registered User
Join date: 20 Aug 2006
Posts: 5
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11-13-2008 11:11
From: Zee Linden I think people who were renting parcels on open spaces are going to be hurt the most in the short term. Open spaces were not designed to be rented on. Too many renters could have a bad experience and that would harm their second life experience. We get more complaints from those we are trying to relocate then we ever had with open spaces in general.
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Wyrdwolf Legion
Registered User
Join date: 11 Nov 2006
Posts: 4
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11-13-2008 11:15
"We expect to see some Residents consolidate their holdings to adjust to the new pricing and product types."
Yes, thats marketing-speke pure and simple.. The translation is:-
"We know that people are going to abandon hundreds if not thousands of openspace sims. Many will become landless and enjoy Secondlife as best they can without contributing to the overall secondlife economy because we have priced them out of the market when countries such as the UK and Germany have already confirmed they are in recession, with the rest of the world fully expected to follow suit. With so much land suddenly available, we expect land prices to plummet, wiping thousands of real dollers off of the investment of thousands of our customers who have supported us through bad times and good."
I bet the owners of Open Life can't stop luaghing.
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Paddy Wright
Registered User
Join date: 30 Sep 2006
Posts: 10
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"I'm sorry. You are right"
11-13-2008 11:19
Zee,
Thanks for the above words regarding OS pricing. I admire the way you have engaged in this forum in an open and forthright manner.
I hope that M does read every page, and learn that this is the proper way for his company to conduct forums.
If he has uttered those words to residents when he had the opportunity, a lot of us would not have lost confidence in LL.
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Mephistopheles McMinnar
Be, or not to be...
Join date: 14 Sep 2008
Posts: 70
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11-13-2008 11:22
From: Elanthius Flagstaff I hope we can both agree that some tasks will be near to impossible to do with scripts and must be left to bots and plenty of tasks are simply more efficient with bots. It sounds that you have a bot-farm and that you sell bot capacity. Lets count what a bot can do and a script not: - Invites to SL-Groups and what else? I can't see further things what a bot could better do then a script or a real user.
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http://djmm.bbping.eu The spirit I, which evermore denies! And justly; for whate'er to light is brought deserves again to be reduced to naught; Then better 'twere that naught should be. Thus all the elements which ye destruction, Sin, or briefly, Evil, name, As my peculiar element I claim. (Mephistopheles from "Faust" J.W.v. Goethe)
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Nakie Nightfire
Registered User
Join date: 10 Dec 2007
Posts: 13
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11-13-2008 11:25
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Nickle Bing
Registered User
Join date: 16 Feb 2007
Posts: 2
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Want to know why LL will never increase premium tier to 1024?
11-13-2008 11:42
We pay LL cash for tier on the mainland. I am willing to bet that 15% of premium members only have 1024m of land. LL is making $5 a month off of them. Multiply that times 10k and that comes out to 50k a month. Raising the tier free land to 1024 would be so much more attractive that I probably would go back to premium but as it stands, they make a lot more money off $5 a month that they do one premium account so I doubt they will ever raise the tier free land allotment.
And for those who always complain about how LL adding more land to the grid is screwing up the market, you are right. But LL is doing this because they have to. I am sure they people there are smart enough to know that this ruins the economy and it is not a good business model but as I see it, LL is barely profitable and they have to make x number of moneny a month to stay afloat. How do you think they do this? A lot of it comes from the auction of sims. This business model is hardly sustainable but raising the prices of sims seems to be the only band aid they have come up with.
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Novellium Siddeley
Registered User
Join date: 30 Oct 2007
Posts: 3
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11-13-2008 11:43
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River Ely
Fabulist and working hard
Join date: 12 Sep 2006
Posts: 32
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Zee, are you still reading?
11-13-2008 11:54
Seems Zee, after answering a dozen or so questions here, has gone strangely silent. Gee, we must have asked a question that could not be answered with a flip off remark. no wait, Sigh, Its lunch time and I bet he has gone for a good lunch down down with his mates, more fun than squaring up to angry customers asking real questions. Might have guessed!
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Renee Faulds
Rises Out Of The Ashes
Join date: 16 May 2007
Posts: 87
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11-13-2008 12:04
From: River Ely Seems Zee, after answering a dozen or so questions here, has gone strangely silent. Gee, we must have asked a question that could not be answered with a flip off remark. no wait, Sigh, Its lunch time and I bet he has gone for a good lunch down down with his mates, more fun than squaring up to angry customers asking real questions. Might have guessed! Well at least tomorrow is Friday - the day free pizza is delivered to the Linden Lab office as a treat for a job well done for the week. Need I remind you the residents pay for those pizza's 'every' week.
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:12
From: Elanthius Flagstaff Zee, since we have your attention: We're beginning to see the start of another mainland price bubble, land prices (or my personal measure of land prices which doesn't jive with Jack's in any way) have risen from about 2.2/sqm to 3.5/sqm in about a week and they seem to be accelerating. I'm sure it's all speculation on the OS news or something. Anyway, are you guys going to do something to stop the prices shooting through the roof again? It's obviously much harder to control than the LindeX but is there something that can be done to stop land prices rocketing back up to 16/sqm over the next couple of months? Stable land prices are just as critical as stable L$/USD rates I believe. Jack may have to address this one, but I think we'd like to see the mainland sell in the L$ 6 to 8 / sqm range. The data I'm looking at on this point indicates that the price rose from about L$10 to a peak of L$13 from December through February. Then the price dropped to the L$ 6 to 8 range through October. Its settled to L$5 to 6 now and I think we'd like to see it back in the L$6 to L$8 range.
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Tali Rosca
Plywood Whisperer
Join date: 6 Feb 2007
Posts: 767
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11-13-2008 12:15
From: Zee Linden I think people who were renting parcels on open spaces are going to be hurt the most in the short term. Open spaces were not designed to be rented on. Too many renters could have a bad experience and that would harm their second life experience.
No. The ones who bought and created an openspace, staying within the allotted 3750 prims and erring on the side of caution of the vaguely defined "light use" are the ones truly hit. (Fewer than 10 avatars and script times at a couple of milliseconds would seem conservative compared to what is running on a full sim) Not wanting to go commercial to pay for the island, they decided to foot the bill themselves, seeing an opportunity to create something for themselves and their friends, even if it wouldn't be a mainstream commercial success. *They* are the ones kicked very, very hard by LL. They are the ones getting the message, "Delete all the stuff you worked on, or turn it into a commercial project for renting; we have no room for hobbyists who just want to express their creativity", which sadly jives very well with Mitch Kapor's SL5B speech.
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:16
From: Atashi Toshihiko Zee, thanks to the slashed purchase prices in April of this year and now the hiked monthly fees coming shortly, there aren't "many folk" who will buy openspace regions. There are many folk who will offer to cover the US$100 transfer fee so as to take the OS regions off our hands, but they are not offering us any money for the regions. The regions are worth nothing.
As far as consolidating, I can imagine an awful lot of people are doing that. I am awaiting it to happen to four of my regions. Regions which were purchased as a four-pack when they had to be, for US$1675, when the prims were 1875 per OS region. Regions which have been used as open spaces, anchored to my fullprim regions. Regions which have never been 'abusive'.
I am pleased to see you are here communicating with your customers, but remain sad about the actual message. To offer us three poor choices (massive cut in service for the same price; massive price increase with a moderate cut in service; delete the regions and walk away from the setup fee and 100's of hours of work) as a solution for Linden Lab's lack of foresight is unethical, and borders on illegal in some locations. To blame the situation on your customers (As Jack did in his first blog post, and M hinted about in his) is just low.
Frankly I find it inconcievable that LL a) continued to sell OS regions right up till the moment of the announcement despite knowing of these problems, and b) refused to consider grandfathering for existing customers. I don't understand how anyone could think those were wise acceptabe decisions.
-Atashi I hear you. Yes, we should have taken them off the market sooner while we evaluate what to do. We're not blaming our customers. We made the decisions and launched the product without the actual limitations that were required to make it a successful product. I've said before & I'll say it again, I wish we could have done this one better. Now that Tom Hale is here, I'm sure we will. I've seen him think through problems in ways that I don't think anyone else here could before. So I have hope. Thanks for your patience with us.
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:17
From: Gordon Wendt Yes however since it is my understanding that money sent to a Linden is destroyed can I make a donation to a good cause (probably NCI, The Shelter, or Relay for Life) in your name so that way the money is at least put to good use? Please do donate it! Your choice.
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:17
From: Bart Heart Zee,
Why drop the OS to 750 prims, when they were at 1875 there was not a problem, untill you gave 3750 prims, dropped the set up fee from 375usd to 250 usd and allowed them to be stand alone sims. How can you say this was not the plan the whole time when everything points to it. Jack Linden made the comment that OS are ok to rent out as residental sims. But yet with all these facts you still blame us for your mistakes.
Also you say there is no fee for the conversion, but when it takes over a week or more to convert 4 OS to a Full sim, Im still paying tier on the 4 OS that have to sit empty untill you get around to convert them. So far I have lost about 100usd in tier fees for the time I have waited for the convertion.
Will you let us know the numbers of OS as of November 1st 2008, compaired to the number of them when we get to January 1st 2009. The number that were returned and the number of converted between this time.
Thanks Bart Heart We are neither that evil, nor that smart. 
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:18
From: Phil Deakins It didn't affect me because I'm totally mainland and always have been.
The first of the two changes was diabolical because LL were still selling OS sims right up to the announcement. That was so unscrupulous because you were selling to people when you knew that what you sold them would be devalued the next day. The second change, the one you mentioned, did help a few people, as you said, but only those who can make their 'open' sims fit the now devalued prim limit of 750. Everyone else who owns OS sims lost out.
But the worst thing is that M asked for discussion with him and Jack in the special thread, and he's been either too afraid to discuss anything about it, or he considers himself to be 'too far above all this' to bother with mere customers. And that's after falsely accusing OS owners of fault for using the sims in ways that LL endorsed in writing. Yes, a better plan would have been to take them off the market as soon as we realized we had a problem. I wish we did that.
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:22
From: River Ely Zee, you dissapoint me, I asked, over two posts, some very simple, adroit, honest questions. I invited you to not give a throw-away comment about the open space sales, but to deliver real figures.
I tried to do it in a way that could be understood by all players with an interest, as well as some one with ten years internet experiance and a CFO to boot. If you do not have those figures, then admit it.
If you do have them ( and I hope to heck that if you are a professional CFO that you would have them plus a raft of other figures) then show them.
The questions are realy quite simple. Treating us as idiots with yet another throw away line (above) really does not do any favours for you, it demonstrates that you really might not care as much as you want us to beleive. Zee, please stop hiding behind quips, and deliver the numbers and the stats we asked for. Put up, or, admit you cannot. River - We have lots of numbers that we do publish. The problem with releasing every number is that then people expect us to continue to release every number. I'm sorry, I cannot honor this request with the specific numbers, but I think I've painted an accurate picture of the trends that I observed. I'm not hiding behind quips. I'm still here answering the questions as best as I can. If I cannot provide the specific data, I have been happy to describe the trends that I have observed. I'm sorry if that doesn't satisfy you.
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Zee Linden
Senior Member
Join date: 17 Sep 2006
Posts: 153
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11-13-2008 12:23
From: Rafaella Schumann Where is the XLS for download ?
I really wish this ! I believe you can cut and paste from the google docs
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Harmony Deschanel
Registered User
Join date: 4 Jan 2007
Posts: 32
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11-13-2008 12:29
From: Zee Linden Jack may have to address this one, but I think we'd like to see the mainland sell in the L$ 6 to 8 / sqm range. The data I'm looking at on this point indicates that the price rose from about L$10 to a peak of L$13 from December through February. Then the price dropped to the L$ 6 to 8 range through October. Its settled to L$5 to 6 now and I think we'd like to see it back in the L$6 to L$8 range. I still have on idea why you, Linden Lab, cares what WE sell mainland for once it's bought from you ... You still don't get it ... It's not the initial buy price from my experience that keeps people from owning mainland ... it's the monthly cost. I get asked this constantly whenever someone asks me about mainland.... First question is "How much per month is this going to cost me?" Can you please try to explain why Linden Lab should care what Mainland sells for if the market will pay it, then what difference does it make to you what we charge for it? If the people won't spend L$25 per m2 for land, guess what? We'll lower the price so it will sell ... Real Estate people don't make money from sitting on land... they make it from buying and selling it for Linden Lab. Because they don't want to get involved in doing to for us. So give us a break and back off ... Let the market determine the price. Why don't you come in and tell everyone in content creation what they should be charging for their stuff while you're at it .... Why only land?
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bo Heartsdale
Heartsdale Rentals
Join date: 15 Aug 2007
Posts: 14
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Trends and maintenance fees
11-13-2008 12:29
Zee,
Thank you for talking with us, been waiting for a week for this.
Sticking with the topic of this thread, trends, prices and expectations:
For this and next two quarters, are there any prices changes coming up after this OS thing? This is already costing me about 2 to 300 dollars extra and I really cant handle another set back without knowing in advance.
Full sims for example, will the fee change?
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