Homestead tier increase 7/09 to $125

I'll be brave and post about this, because people in my sim keep asking me about it and I haven't found any discussion about it to point them to.

The basics of it are this: "With the economy the way it is, people losing their jobs, that many economically-depressed people are having difficulty still playing on SL, and the already-increased homestead tier of $95/month, is Linden really still planning on increasing the tier to $125/month in July of 2009?"

I haven't heard otherwise, but the question is coming up with increasing frequency as the economy continues to tank, people lose their jobs, and the July '09 deadline nears.

Is there discussion anywhere about Linden's plans? As far as I know, the homestead tier will go up to $125 in July, but people are having truly having difficulty understanding why Linden is continuing to pursue those plans considering the economy.

As far as I know, they haven't made any changes to their plans to ratchet it up to $125 a month. Which, seriously, think about it. That's a fair chunk of what a person pays for a mortgage (before escrow.) Is this game really worth it when you put it in that perspective?

Unfortunately for Linden, I suspect that for many, it will *not* be worth it anymore and they're going to lose a huge amount of permanent accounts and income because people will abandon yet more homesteads and simply give up SL completely.

And that's why people keep bringing it up in-world. Why, when raising the price to $125/month is so obviously a truly bad thing for both Linden and users with how things are going, are they still planning to go through with it? It seems so completely lacking in logic that people keep asking me, "Are they *really* going to do it?" because it's hard to believe Linden would do something so harmful to both themselves and the users.

I know I can't be the only one who keeps hearing it from users...

Per prim, a homestead at 125$ a month is a terrible deal. People I know with Homesteads are barely able to afford them as is, since the price now makes it difficult to rent out part of the sim to cover tier.

Consider a moment. Let's say you have 4 homes in teh stead, including yourself. That's 25$ a month. Not bad huh? Well, when you realize that each person can only have 4 guests (the 20 person cap) and only 937 prims to build with, it's suddenly less of a bargain for the price. And when the price shoots up 25% again in July? it's awful then. And what exactly does the price increase get you? Can you name me one other technology company where the price goes up with time instead of down?

I loved my opensim. I and one other person took care of it as a trust for the group and we paid for it in cash, not even trying to make it self supporting. We kept it for boating and for flying for the entire group. But it's gone - all gone now. Nothing but a big hole where our playground - you know, like the lindens wanted - used to be. We'd love to put a homestead in its place. But at 100$ today and 125$ tomorrow, it's simply not worth it. We can't make it self supporting, and we can't barf up a gold coin every month to pay the tier.

Lots of homesteads will be dumped if the price goes up again. We are struggling with the worst economy since the Great Depression, and LL wants to raise their rates on what is basically a luxury entertainment expense? Not smart. No, not smart at all.

With the homestead increase, indeed a lot will be lost. Added to that less support than before. and fewer prim allowance, There is no benefit to a homestead than getting just a plan void. A void would be more worth it, but it still leaves a foul taste to lose soo much to such a drastic change.

As it stands, things are hard enough as is. A homestead, who's price goes up, but prime count, and tech support go down on are ill, and more likely than not, a disease that will hinder SL with the loss of support from the Community to it. Where is the win?

All this because a few bad apples were over taxing their sims, and now we all have to pay for it? SCREW THAT SHIT, they (LL), need to ef'ing make those people loose their crap and go back to renting again. and this 20 person cap is BS! How many people aren't going to throw a party now and then?

LL needs to pull their head out of their COLLECTIVE asses and satrt thinking again.


I have no idea who came up with this idea...but they need to be thoroughly smaccked, flogged, and then keel-hauled!

If Linden Lab continues through with this $125.00 Homestead tier increase in July, but opens it up to anyone rather than just those who own a full prim sim (15,000 prims), then it just might fly. However, by doing so, LL will virtually destroy a large segment of "land barons."

I guess not many tears will be shed for those land barons that will have to pull out completely and lose big time while doing so, however, in spite of most everyone disliking the land barons, believe it or not, when the land barons go, so does Second Life. The effects will not be a ripple, but a virtual tidal wave.

i think i know why the lindens did what they did, by reducing the price of the islands they increased the amount of them, but they did not reduce the tier, this had the efect of making estate owners reduced prices to stay in business, this also had the affect of taking all the profit from the estate owners, therefor making sure that less money was taken out of SL, then by increasing the tier of the most popular island type made sure that no profit its was made on them, the net affect is that any money used in sl goes straight to the lindens and stops any money going out to anyone else, i think was their intention from day one. and they have been successful, i don't believe they have any intention of listening to any of you, they have ring fenced every penny and i think that the new CEO was meant to do that, hence the buying up of any thing that takes money out of sl.

Sounds extremely plausible considering the extremely anemic replies to any messages in the Openspace Announcement Discussion area.

Are there statistics posted anywhere that show what Homesteads are being used for? I know before the conversion to Homesteads, a lot of Openspaces were being abused and used for high traffic commercial areas (although the one I paid for certainly wasn't, it's residential), but what about now?

The Homestead guidelines say "light commercial." But what are the statistics on what they're actually being used for? How does Linden figure out when/where abuse of the guidelines is taking place?

Regardless of whether or not Linden might be paying attention to our discussion, the fact is that IT NEEDS TO TAKE PLACE. We need to talk about it, it needs to be out there for discussion and available to people to participate in. The obvious possibility that it may or may not make any difference should not deter us from continuing to ask important questions.

So, again, the question is this, and we would like to hear here from Linden on the issue (and as this is the appropriate forum, this is the place we should expect for Linden to notice and respond): are you aware that with the current financial crisis that raising the Homestead tier to $125/month is detrimental to both users and Linden, and should be seriously reconsidered?

Homesteads have now avi limits on them, not more than 20 people can be at the same time on one, so they cannot be abused for clubs or malls with camping. Increasins the tier to 125 usd in July would be just showing us they lied to us for the increase reason. I asked Jack in a meeting about it and he couldnt give me an answer, strange isn't, if you think they suffered so badly from the abused homesteads before, you would think they know if they dont suffer anymore : )

Also they lost about 8000 homesteads so far, many are still on the grid from people who just disappeared and didnt pay the tier anymore, so I guess the figure is even higher.

They are also talking about new products, I guess a 7500 prim sim will show up next. So how do they want to price that if a 3750 prims costs 125 USD and a 15.000 prim 295 USD?

Well, I really hope they will think for once first before they make the decision if they will increase of not.

I won't even give their new product the tiny bit of sucrose it takes for me to think about it. They shafted me, my friends, and thousands of other people I will never meet. And they are trying to implement a positive PR campaign in the stupidest way imaginable. I've NO reason to trust them again and EVERY reason not to.

If LL thinks I'm laying out more cash for their next product after their bait and switch with the voidsims, they're literally flying in some choice smokes baby... good stuff. If they cancel the next price increase for Homesteads, I may consider it. But until that day you will find my trust for LL sitting smack in the hole left behind when we lost our voidsim.

How/where do we find the figures for how many Homesteads and such have come and gone since the initial Openspace announcement?

I too have been hoping to hear more on this whilst also keeping my fingers crossed somone somewhere at the Lab will see sense and leave things as they are...
The only person who even mentioned the July price increase in any form of discussion was Zee Linden here on the forums and all he gave was a rather limp "i hear you" but he ofcourse recently left the Lab so god knows.

Point in fact is that if they do change their minds they look incompetent if they dont they look incompetent. As with many of you i am still wondering what good can ever come from this and it makes you wonder who on earth is steering the ship here and where they plan to take us.
I have really no idea what i will do come July but i guess i simply have to suck it up but it makes all economic activity that little bit harder not only for me im sure. I do wish LL would wake up and realise they need to nurture business in SL not suck every last penny from the mainly meagre profit margins that exist.
I mean lets basically look at tier or rent as tax increasing this beyond the point of what is reasonable (and what is reasonable should be obvious when people complain strongly and in numbers) will simply discourage economic activity meaning less money is spent on other goods and services as a result and its has a knock on effect in so many other ways too. I am sure anyone with a basic grasp of economics can tell this so why cant LL?

Sadly though even writing or discussing on these forums feels pretty much futile i have never once believed LL are really listening rather they patronise and placate ..guess its a like it or lump it situation.

I am now seeing some land barons reducing their prices to below their own costs, and yet claiming that they are still making money. It is getting pretty desperate inworld. LL's timing in destroying a product that everyone wanted couldn't have been worse.

Ciaran has summed up the reasons why in the other posts much better than I ever could but if it weren't against the TOS I'd bet L$ that they won't do the next price change. Even though the Lindens do a ton of things that seem illogical and even idiotic they aren't stupid, with the backlash that they received, which I'm betting is more than even they foresaw, and the economy the way it is they can't afford to make the change since they'll lose more money in lost customers in teir than they'll gain from raising the price by $25.

That remains to be seen... at least on this particular issue.

Its funny that In a blog, that i can no longer find they had pushed back the price increase and script limitations till third quarter. In the homestead FAQ it also stated 3rd quarter. then suddenly with out any announcement at all the FAQ changed back to July.

Nothing was mentioned about it in any blog, in fact.... i have a chat log where i asked the lindens On march 4th about when the change was coming. i also made comment at that time that the FAQ listed the price increase like this US$125(Q3/09)

Less then 1 month later and the time line has changed again... but no announcement from anyone at LL about this change or the finalizing of the time frame. Also the FAQ 's last updated date stamp remains the same as if its always been july 9th.

This is the kinda crap that makes them less them out to be less then honorable in their business practices.

(yes i know july is 3rd quarter, but the fact they finalized a date and didn't think to let anyone know it what gets me)

The second increase has always been a July change. Not sure if there was a specific date, but July was the month.

I thought they made it it clear also that July the price was going up again and for those of us that gave our under used OS's up i hope they do carry through with the price raise as they said, as if they were going to keep it at 95 a month i think a lot of us would maybe have hung onto them.

But with the new adult rules coming in the homestead price raise will be lost in that problem as this new ruling will surely overshadow it.

Just my thoughts tho

I know it's been said before but LL really can't win, if they raise the prices, especially in this economy, they'll lose a lot of people who were on the edge or just don't want to deal with LL anymore, and if they don't then people who already gave up their land anticipating the price change will be pissed. I think the latter would be more manageable for them than the former but either way they'll piss people off.

I agree Gordon they are in a no win situation in so many respects, however SL is still a great platform, well i think so Just wish LL would be a bit more transparent as they have promised so many times in the past.

Me too, that along with a guarantee that they'll give a full 6 months notice on any major policy changes from the time their announced until the time they take effect.

i think the increase is based on eliminating as many homestead sims as possible and giving people the option to live on mainland who dont live on private full prim,as mainland is becoming a ghost town due to the options of homestead and openspace sims

We can dream But what a good policy change that would be as it would enable us to forward plan a bit better than we are able to now.