Linden Labs Says (Raise Prices)

What I havn't seen pointed out anywhere (admittedly I do not read all of every thread though so I could be wrong) is that stipends add to the overall supply, yes, but the individual supply has remained the same throughout. Someone needing to buy $L's 5 months ago would still need to today unless their spending habits have changed or they have been saving all of their $L's. So I don't see how stipends contribute to the problem.

I think raising content prices is a great idea. As the need for $L raises with the prices then people will buy. Yes that's inflation, but the entire world is under inflation right now. As the need for $L's raise and buying increases we will most likely experience a bit of deflation, but that would ultimately result in the value of the $L going down again. Welcome to real life...the value of money goes up and down all the time, just in much slower increments than SL.

Relax, follow the trends with your prices, and watch the economy stabilize into an up and down rollercoaster.

Unless the Market has an increase in the money supply.


Back in 1923, Germany was so poor after World War I, that it
start printing money to pay its bills. The continous increase in the
money supply reduced the value of the Mark. The net result was that
people needed wheelbarrows to buy bread. Not because bread became
more expensive, but because the money supply went through the roof.

So just like Germany Post-WWI, Linden Labs is printing money like it
was water and distributing it via Stipends. About L$50/million a month.
So just to break even on the valuation of the products you sell, you have
to increase the numerical price to stay flat. Its value isn't growing because
you raised the priced, only its dollar figure in relation to the devalution of the
Linden Dollar.



http://en.wikipedia.org/wiki/Hyperinflation

Germany
Germany went through the worst inflation in 1923-24. In 1922, the highest denomination was 50,000 mark. By 1923, the highest denomination was 100,000,000,000,000 mark. During the worst times, one U.S. dollar was equal to 80 billion marks.


This stack of German Marks was equal to US$1.00 in 1923.

Nah, think I'll undercut those trying to sell their lindens. Sounds good to me!

The estimates are that Second Life will break L$1/Billion
Linden Dollars in circulation by Dec. 2006 unless Linden
Labs cuts back on stipends with a vengence....

There is no doubt that if the Float hits L$1/billion, the Linden
Dollar will most likely be under L$500. Right now its at L$328,
almost about to fall below US$3.00 per 1000/Lindens.

I remember the days of sitting on my porch and seeing L$175.
Almost 2 years later and we have fallen nearly 100% from that
mark.

I hope you did not spend your rent money on Lindens *giggle* It would be a bloody shame if you went homeless in RL trying to corner a play money *giggle* *laugh* *more giggle* *even more laugh*

I could care less what happens to the value of the Linden! *even more giggle and laugh* Rolling on the floor laughing!

Oh I remember the days when the dollar got 360yen!Now it is worth less than a third! I am going to laugh myself sick thinking about the falling Linden!

One thing I never understood about you. How can you claim that you won't and never will pay real money to LindenLabs for your $L, when that is exactly what you are doing when you give LL your $10US? And how can you think that cutting stippends will hurt you, while leaving them as is won't, when if things are left as is, actual inflation will follow the devaluation of $L, people will charge more $L for their stuff, other people will buy more $L on the market for the same amount of $US to buy that stuff (i.e. actual real price they pay for the stuff doesn't change, just the amount of $L involved), and your stipend that you are fighting so hard for will end up being worth as much as a freebie $50?

I agree with you on that, Shaun.

I don't agree with you, though, that I should raise my prices so my customers will have to buy more Lindens. I like my customers to get their money's worth, and then some, anyway.

coco

lol!

coco

1. There will ALWAYS be more content creators.

If it becomes not worthwhile for some, there are plenty of others to take their place.

2. And on a note unrelated to (1),There are really two games going on in SL. One is the one we play, and we depend on the value of the Lindens.

Then there is the one the Lindens and some of the content creators are playing, which deals with outside businesses and real-life cash.

Guess which one matters.

coco

I pay more than that a month sir! I just dislike being asked to give up something for others to profit! Actually I think think removing the stipends will do a thing to save the Linden. Maybe for a short time but Second Life does not have the same driving forces that real life has.

You pay more than $10US a month for $2000L??? And you're giving up more than $10 a month for others, here being LindenLabs and whomever you give your overprices L$, which you have paid for with REAL MONEY, to profit already. So I still don't get it. How can you claim you don't want to give up real money for $L when you already do, and apparently pay even more than you should be?

I pay $72 a year to be a Premium member and $8 a month for tier. Why the frak should I pay more money for Lindens? As far as I can figure it out it will benifit only a few people and force the rest to pay real money to buy their Lindens.

I think the basic membership should come to a end. Either you are a "premium" member or you dont play at all. Of course if Linden Labs wants to end the stipend to basic members who pay nothing, I would have no objections to that!

Ending free memberships would make Lindens go BACKWARDS to the way things were before. Lindens created free memberships to improve things. Getting rid of them would make things worse. And I guess you pay $8US for $2000L. Which is that other problem of Lindens essentially selling $361L per $1US, so you're getting them at a discount and subverting the economy for the rest of us (but this probably won't matter in a month or two, since the value of $L will probably hit that same mark on Lindex.)
So, does this mean you're fighting against getting rid of stippends for personal gain, wanting to keep getting $L cheaper than what most of everyone else can? (freebies and 1month accounts)

I have a contract with Linden Labs to receive a service for a fee. Linden Labs has no obligation to support the value of the Linden, none. I have no obligation to provide you an income, none! I just took the offer that Linden Labs offered. I put up money in the good faith that Linden Labs and Second Life will continue and received a discount for my act of faith.



I think getting rid of free accounts will go a long way to getting rid of the griefer problem. Get banned now, no problem go and make yourself another free account. Getting rid of the free accounts will go a long way to making Second Life a better place. I predict it will go a long way to stopping griefers and those grid crashing morons. They should also charge a start up fee!



I pay $8 a month to own 1024 sq meters of land. Land to put things on, land to build things on. I know as a basic member you don’t understand this concept. Oh how many alts have you made? I am still on my first!

You keep saying that, and people keep telling you that contracts have a time provision. You have a contract for a year. While you have that contract, it will not be changed, since you have already paid for your services. After it's up, you may not have an option to buy the same kind of contrace for the next year.



You are correct. I also have no obligation to provide services to my customers. No one does, unless they are a publically owned corporation. Even if a company owes a lot of money to someone else, such as LindenLabs does when it got investors to put millions of USD into them, they can pay that money back by other means, without having to support their customers. However, for the business structure that LL uses, it's easier for them to make their money from the customers, and they have been doing that from mostly monthly fees at first, then mostly from land tier payments, and now also from currency exchanges (as I've pointed out in the other post, they make quite a bit of money from Lindex). They have no obligation to players, just as content providers have no obligation to sell you or make anything for you, but they preffer to make a profit, same as those content providers do. And the more of an incentive there is for providing the service that LL provides, or providing the content that those in-game content providers give you, the better that service and content will be. I mean, just look at how far we have come in just two short years, quality-wise.



Griefers supposedly get banned to a SL jail, where you're stuck on a single sim, in the middle of a cornfield, with just a tractor to drive around (I've seen screenshots, but never actually got banned myself). Again, you are proposing going backwards. It used to be that everyone had to pay. Then you had to pay a start-up fee. Now you can play free, but just won't get much in return. You're proposing going to a system that LindenLabs have decided was a worse system a long time ago.




I only have one alt. Never needed a second. And you pay $8 for a combination of land and $L. (You said in a previous post thatyou only get a measely 512sqm for that that's worthless to you?) Would you be better off if you paid much less than that for the same amount of land?

Yeah, back after World War II when the bottom for the Yen was 360.
Now that Japan has become an economy power house, their currency
has gone up in value from 360 to 110. It takes 3x the dollars to buy
the same amount of Yen from years ago.

Too bad the same can't be said for the Linden Dollar...

It was also 360 yen per dollar in the 1970's.

Are we going to have to take up a collection to help the Linden Traders pay rent and get food? *giggles*

Next time how about trying to make money by buying stocks or bonds? A savings account is a much better deal than Lindens *laughs*

If we bring real world currencies into this, it's even more troubling that $L is fallng against a $US dollar, since the $US has dropped quite a bit as well. As for stocks being a much better deal? I'm not so sure about that. I made about $29US on my $300US worth of Lindens in the last two days (this is even adjusted to curent inflation prices). That's %9.6 interest in TWO DAYS. Essentially I made in two days what a good stock, bond, or if you're lucky to find it, a CD, can make in one year. This won't last though, since with $L devaluation, each trade makes less and less, and more and more people are getting in on this, making the competition drive down the prices.
As for savings accounts, I took the $250US to $300US (forgot how much it was to start exactly, since it was two or three payments) I made in the real world, bought L$ with it, and put that into Ginko. It's now worth $635US. Show me a savings account that can do that.

Ok a well know landlord has done as LL wanted and putted the prices up on tier.. (No names or company mentioned)...

/Tina - with an very EXAKT hangover since I and the GFs ”took care” of the city in Stockhom last night.

Yup... Prediction Confirmed.. Just like I said, Rental Owners (MUST)
begin raising their rent prices, else the declining Linden Dollar will
cause them to take in less money.. And if their rental prices are
priced in such a way to cover the cost of Land Tier, then by default,
Rental Propertry Owners have to monitor the US$/L$ exchange rate
and adjust prices accordingly....

This should also be a GDP metric... If LL ever gets off their butts and
start creating a real GDP instead of tallying L$ transactions and calling it
GDP.

The end of WW II was 60 years ago. If only SL had that amount of time to recover .

I refuse to buy expensive Lindens from the usual people who are controlling the market! Not now, not tomorrow or ever! I know there are others out there that feel the same way. I also refuse to be a shop slave or a prostitute to acquire Lindens. The days of the "comfort" girls are over.

I will never give in; I will keep my principles over blather no matter what!

Yes, yes. We know you love your contracts (even though there was never a mention of anyone wanting to break it or change it). We know you love your $500L weekly stippend (even though with the way the graph is pointing up, it won't be worth much at all in a bit, and will actually be cheaper to buy from Lindex than to get it from a stippend). What else is new? And how does any of this actually affect you directly, since you don't buy $L, you obviously don't sell content of make money using $L, and apparently don't care that you're essentially getting less and less in stippend every week without realizing it?

Said this before and say it again. I am not on Second Life to make money. I am not on second life to obtain an endless procession of objects.



Told you before am paid well into 2007! I will not have to worry about renewing until then. The thing about the stipend is about principle over sellers’ greed. Some content maker puts in a few hours and expects a lifetime of income. That is how things work here, you only have to make/acquire content once. All of this blather about working for free is blather. Perhaps on new items it is true but not on content that has already been made.