Please read all the below with this in mind:
For $4 RL money, I can't even buy a mass-market unframed commercial print to stick on my wall with blue-tack. I need to spend at least $12 in my part of the world.
For $4 RL money, I can buy a hot chocolate or a latte, and enjoy it for ten minutes.
For $4 RL money, I can buy a skin that I can wear on my SL avatar, enjoying it for years.
The last is the best use of that $4, IMO. And all of it goes straight to the person who provided me with that pleasure, either recompensing him for out of pocket expenses such as bandwidth, depreciation and tier, or giving him payment for his time and effort.
Declaration of interest: I'm an SL consumer, and an SL content creator. My greatest SL income so far comes from animations, I also make and sell clothing and furniture, and am experimenting with prim shoes. I teach for NCI, and help people on the NCI channels. I write tutorials that I post for free on my blog. And I got my starting cash for my SL business (which is making tier!) from NCI show and tell entries, and from the generosity of a couple of residents who made space for my early vendors in their stores.
From: Karen Inglewood
I just don't accept that these figures are realistic.
Firstly, it may take an artist some time to create their first skin, but after that, future skins are based on the original design, and often mean a simple shading of the skin tone or even just reusing the body textures as they stand.
Some do, some don't. Some reuse parts of their existing textures, and not others. For this particular exercise, I chose to presume a fully redone skin. But that's why I broke the math down into each individual facet - so those who disagreed with it could see what I'd done, and redo the math based on their own determination as to what's realistic.
From: someone
Your 1500 a week for advertising....that makes up for 4/5 of the weekly cost is also an optional and probably pointless expense.
Then redo the math, taking that out, and use the remaining figures. Do the same with any figures you disagree with. I'd be interested in seeing your results.
From: someone
The SL economy is different from the real economy. Anyone using SL recognises that. People in SL adapt their prices to this economy. Speak to a business consultant in SL and it might cost you a 1000L. Try getting anything from the same guy in RL for 4 bucks! Why should a dancer that may earn 500L for an hours work, and accepts that as part of the game pay costs for skins that are designed to recoup RL levels of earnings for skin makers.
Why should any one person dictate what another person's time is worth?
The customer determines whether the product is worth the offered price to that customer. If it's not, they don't buy it.
From: someone
Let's take Redgrave as an example as they seem to be one of the most popular skins at the moment.
Therefore, the Redgrave numbers are going to be vastly different from the numbers for a mid-level-popularity skin maker, and even more different from the numbers for someone near the bottom of the rankings.
From: someone
Given that money is being made in quite large quantities here, why shouldn't I feel aggrieved if I have to pay another 1000L just to get a different tan or lip color.
You can feel aggrieved if you want to. I just wanted to point out how much it takes for a mid-level skin maker to make minimum wage from her skins.
From: someone
You also seem to forget that in the real world, if you sell something, you have to source it, pay manufacturing costs etc. In SL, once you have made it, any sales are pure profit.
Nowhere in my post did I include raw materials or manufacturing costs. In fact, I intentionally left them out because they don't apply.
As for 'any sales are pure profit': that's not quite true. Profit is revenue - costs. My whole post there was a breakdown of costs, and what level of revenue is required before you start to make profit.
By my calculation (and as I said, you're totally free to change the numbers and redo the math), the hypothetical skin maker starts to make a profit (presuming she pays herself/the artist minimum wage) in week 72.
From: someone
Let's not get into this area of trying to equate SL business with RL business. The two are very dissimilar.
I'm not. I'm just saying that surely an artist deserves to make at least minimum wage. (So does everyone else who's producing a good or service of value, IMO.)
From: Gordon Wendt
I find it somewhat surprising that anyone actually has the gall to defend the extortion that goes on for minor changes
I think you're using the wrong word, Gordon. Extortion requires force. What you're actually seeing is 'market forces' or even 'haggling'.
The seller has something the buyer wants. The two negotiate, and determine whether the buyer is willing to provide goods or services or tokens (money) to sufficient value for the seller to part with their goods or services. If that is so, then a sale takes place. If not, it doesn't.
Simple trade. Been going on since Ug the caveman swapped a haunch of meat to Ulla for the nuts and berries she gathered.
From: someone
The reason that skin creators have gotten away with actions that are deplorable and if this were rl would be illegal, such as price fixing,
I'm not one of the elite skin makers, so I can't say for sure what they say among themselves. However, I recently went skin shopping. I saw a wide variety of market segments, and skins that were, quite frankly, appropriate to their market segment.
Among the nicest skins (to my personal taste), the price variability was in excess of 500Lindens.
On my short list, there was no sign of price fixing. Just market forces. And yes, my short list included the most expensive skins.
As it happened, I actually got my second choice skins for free. Yes, that's right, free. All I had to do was join the designer's group.
Sure, it was a particular makeup - but that happened to be the one I wanted anyway! Sure, the free skin comes with built-in underwear, but I don't do nudity so that's actually a bonus.
(I did buy a set of that designer's skins, in a different makeup, because I do believe people deserve reward for effort. Besides, I love the skin and some of the makeups.)
From: someone
the barrier to entry to run anything resembling a successful store (defined in this case as successful enough to break even and make a large enough profit to continuing to justify having said store) is ridiculously high and even if you get off the ground if you aren't one of the big names and you haven't been networking with the right people there are serious issues.
I must be a freak. My store breaks even, has paid for me to buy a few items I'm not yet skilled enough to make at top quality (working on it, dahlinks), and if it keeps up at this rate, I'm going to start converting Lindens to RL money by the middle of next year. Maybe I'll see if I can do a conversion on my Rezday, which is in April.
Yes, in April I'll be a one-year-old avatar, and I'm already running a business that's doing well enough that I can afford luxuries. Ridiculously high barrier to entry? Naaah. Not in my experience.
Have I been networking with the right people? Only if writing in these and the SLExchange forums, and being actively helpful on the NCI group channels counts.
From: Enkidu Recreant
I think that I'm broadly in agreement with what Peggy and Kiran are saying, and I don't think that the way I operated would have hurt the skin and tattoo creators, however there is another point you have missed. Whether you agree with it or not, the law is the law. We can't pick and choose. Often the law is stupid, biased or unfair, but it is the law.
Thank you.
From: someone
It seems that when we buy a skin or a tattoo in SL, we are only actually renting it, that ownership resides with the maker. Perhaps this should be made clear at the time of purchase.
Actually, it's similar with all intellectual property. You purchase the right to use, not the right of ownership. To quote from a random book I picked up from my bookshelf: "Copyright 2007 by Mercedes R. Lackey. All rights reserved."
That's the short form. The long form actually requires all the words of the Berne convention.
http://www.wipo.int/treaties/en/ip/berne/trtdocs_wo001.html or
http://en.wikipedia.org/wiki/Berne_Convention_for_the_Protection_of_Literary_and_Artistic_WorksMy best written-in-five-minutes-or-less summary, for SL purposes, goes like this:
* You purchase the right to use the artistic work for personal use only.
* You may or may not have a right to make copies for your own personal use.
* You may or may not have the right to transfer your right-to-use to another person, but if you do that, you no longer have a right-to-use it yourself.
* You may have the right to make derivative versions for your own personal use (ie: mod perms), but this does not transfer that right to anyone else to make derivative versions on your behalf. (Derivative versions of a work are strictly controlled under the Berne convention.)
Additionally, you do not have the right to represent a derivative work as being the pure creation of the original creator, if you then resell your right-to-use. (Not listed in the mod/copy/trans permissions system, but a logical extrapolation of the Berne convention, IMO. YMMV.)
I do have a tendency to forget that many people don't have my level of understanding of copyright law.
From: Peggy Paperdoll
No matter how long it took, how hard it was to make, or how unique it is it will only command what people are willing to pay for it.
Yup. That's the way it works. And sellers are perfectly within their rights to price themselves out of the market if they wish. Some sellers doubtless do.
From: someone
You cannot equate time spent on virtual creations for SL to material creations in RL. The mathmatics is done constantly......and impressively shows what people are doing with their time to make the products we all buy and enjoy. But trying to tell me that someone spent over 40 hours to create a single skin, then tell me that if there are 10 versions of that skins that that's 10 times the time it took to make the very first one. That is insulting to everyone's intelligence.
Oh, okay. So you want the seller to sell the first skin at .. let's see. Minimum wage is 1703 Lindens. Eighty hours.
You want the seller to sell the first copy of their skin at $136240 Lindens, and the rest free? The SL market doesn't work that way. Who would buy a skin at $136K Lindens knowing the second person to buy it got it for free?
That's what all the math in my previous post was about. How to get the skin-maker minimum wage for 80 hours worth of skin creation, after tier and other expenses.
From: someone
Aside from the accounting, where's the time after the first skin is made? A few minutes is all. The potential sales are almost unlimited for as long as the creator wants to keep that skin for sale. It costs nothing to warehouse the product. There is no "labor" cost to incure, no raw material to purchase, no deadline to meet. The price of the software to develop the product cannot be included in that calculation unless that software was purchased solely for creating textures that are exclusively used for SL products for sale. The math is impressive.......but it's not true.
All that 'good customer service' I've heard so many people talking about in this thread. At the $6.55 minimum wage, and a 260Lindens-per-USD exchange rate, 1000 Lindens buys you 35.335 minutes of someone's time. So if you keep a seller busy for half an hour then buy a 1000 Linden product, the seller has gained nothing from you.
And while some customer service is fun, do people really do customer service with the unreasonable subset of the SL community 'for the love of it'? I wouldn't!
As for the software & equipment for making the product: accountants do allow for that. They estimate what percentage of the equipment's lifespan has been spent on this product, estimate replacement value, and apply one to the other.
From: Baloo Uriza
That being said, it seems like creators could largely protect themselves against this kind of problem by adjusting their business model to account for the fact that digital assets are hard to protect, but labor is, by contrast, relatively easy to protect.
Therefore, possible solution would be to consider the result entirely the buyer's property with it's use or modification entirely up to them, and bill them for hours worked on creating it for them, and don't sweat what they do with it once they have it. Adjust billing accordingly. Instead of lowballing how much your labor is worth by dividing your labor's worth by how many units you expect to sell, sell the labor itself and charge for how many hours of your labor it takes to build something on someone's behalf.
Given how upset people are about spending $1K Lindens on a skin, I don't think we're going to have much luck getting people to spend $136K Lindens! And that only brings in minimum wage, and doesn't account for any of the overheads.
I've - so far - only had one person approach me for a custom job who had any intention whatsoever of paying a living wage. I actually referred him to a friend of mine who would suit his particular field better.
But yes - given customers for this model, I'd be perfectly willing to work to this model. I have no objection to it - and the Berne convention does cover this type of work too.
From: someone
The last thing anybody wants to see is a talented builder hang it up because they didn't sell enough of some item, and then someone pirates it and completely undermines their efforts after only one or two are sold at a low price, on the expectation they'd make it up on volume.
Quoted for truth.
From: Gordon Wendt
The fact that textures can be easily copied is, if I understand it correctly, less an issue with LL's infastructure and more to do with the nature of displaying graphics client side and open GL (open gl is vastly preferable to other alternatives for licensing and other reasons) and although greater minds than I on the forums and presumably within LL (a presumption but I'm guessing it's come up there) have tried I don't think there's any way they could prevent texture theft. Even if they did content protection doesn't work unless you control the whole chain from server to monitor and for many many reasons that is impossible.
Alas, also quoted for truth.
Just because something is possible, doesn't make it legal.
From: Chip Midnight
Just to be on the safe side, during the next secret cabal meeting, I'll make sure your name's not on the "force to buy at gunpoint" list.
You upset my cat. She didn't like having mushroom soup splutter-laughed on her while she was sitting on my lap.
Love it.
From: Thunderclap Morgridge
First off, someone doubted the amount of time required to make skins and clothes due to the use of masters. Because no one has offer up an explanation I will.
I have written two editions of a book. The second edition took as long as the first, because I reviewed every word. Even the bits that haven't been changed took time to check the current accuracy of. The bits that have been changed, of course, took extra time. And the entirely new items, naturally enough, took even more time.
With my SL clothes, once I have found the right seam line for a particular seam, of course I keep using the same seamline. But I might change how I display it on a particular garment. I might change the intensity of shadows or highlights depending on the underlying colour. And I certainly add new material for each new product!
Sure, the different colours of the same product line take less time to make than entirely new product lines. Sure, each new product line builds on the last, and I'll grab a layer from product X to add to product Y.
But I change the product X layer to better suit product Y. And I put enough new material into product Y that yes, it did take as long as product X. (Actually, my newer stuff keeps taking longer than my older stuff. I'm getting fussier. This is good news for you, because my products are getting better.)
So, presuming that skin makers work rather like I do, I expect that yes, each new product line of skins takes its own forty or eighty or whatever hours of work. (Skin makers, care to comment?)
Aaaand... I think this thesis is written. I hope it all fits!