Economy Announcement: Removal of Traffic Incentives

This will not end dwell

I don't think the shops and malls will win here, there will be less money to buy things. And the reason for buying a lot of things was to show off in the clubs and casinos that will now be closed. And if the shops and malls lose then the content creators, who they are supposedly helping here, will also lose and stop creating.

How are clubs going to be able to pay staff, contest winners and tier? Most say charge admission, but why would people want to pay, when they can stay at home for free and dance with friends? Sure in RL they charge admission, but in SL they are not making money from drinks and food.

*ponders this again* Okay, taking dwell definately won't affect me, and I am trying to run a shop that is both a shop with a semi-relaxing atmosphere. I will probably be changing the shop design a bit from time to time, mostly due to the prim limit for the 512m2 parcels (No, people, I won't step up a tier to get more prims, that's a waste of both land and RL money that is outside my entertainment/hobby budget.) I shall simply go on as I have been.. stumbling very slowly

It paid the cost of my events manager and that's it. Now that cost, like every other darn thing for my business, comes out of pocket. If people would be willing to pay for events, Perhaps The Phoenix Spa Resort might survive. It isn't just another "Sim Killing Club" though. (This comes to approximately $4000L per month for me, btw.)

The Phoenix Spa is responsible for 5 events a week most weeks and sometimes more. If people would be willing to pay for those events to keep them going, it might happen. Otherwise, why should sim owners pay out of pocket to entertain people? those being entertained should be shopping exclusively at the places that amuse them, if they aren't willing to pay for the actual events.

So Sorry Phoenix Sanma, Your club would have to be beyond excellent for me to pay money to visit it. I am going to start hording Lindens! Given a little time, the only new Lindens in the system will be ones that are bought.

I am so looking forward to visiting "the undiscovered country"!

You make some valid points.

It is obvious that some step needs to be taken to stabilize the L$ economy. The L$ is devaluating at a rapid rate. The obvious answer is to start restricting the flow of the L$. But it truly is upsetting that once again, a half-way, insufficient method of doing that has been chosen. An L$ reduction should be a mutual sacrifice, shared by all members of Second Life. Instead, LL has once again chosen to slam the very people that make SL work-- the landowners and content developers.

I had recommended that one of the best ways to greatly reduce L$ flow without unfairly targeting any one group would be a "food requirement", that would alter in cost every week according to the current L$ value. If the L$ is stable, then no food fee. If not, that food fee would be taken out every Tuesday as stippends are released. That way everyone helps stabilize the economy and none are exempt.

But is that a good idea? Nooooo... let's hit the landowners and merchants again... no one likes them anyway.



And this is a very good point Barbarra. As an example, I'll openly present ELF CLAN. Do we have content? You bet. Do we have events? We sure do. Do we have members? Yuppers. Anyone want to guess the only reason we don't limit our lands to members only?

Because allowing visitors is good for our merchants and our merchants help support our sims. (Well, truthfully, we kinda like talking to new people too. That's just how Elf Clan works. )

Now, if it becomes harder to pay for our lands, if the L$ devaluates and merchants stop renting booths, if it no longer becomes worthwhile to merchant, what does that do to open, friendly groups?

It's just as you aptly stated above Barbarra: groups start clamping down (just like they do in RL and other online social clubs) and limiting access to MEMBERS ONLY. I mean, if allowing visitors to our land allows potential access by griefers, we have to balance that against the advantages to the group that visitors bring. When that advantage nullifies... then what?

As I stated earlier, I am not necessarily against the idea of cutting back dwell. But I do think it's a misguided effort to fix a problem that needs to be fixed with a little bit more courageous and all-encompassing decisions. Bottom line: LL has just picked on a particular segment of their population-- the segment that contributes the most to SL-- and pushed the burden of their economic problems on that segment. That appears at first glance to be an unfair and unwholesome move... one that could very well have foreseeable negative consequenses.

I am a landowner and a content developer. I pay for my tier and my account with my content sales. Dwell means absolutely nothing to me. I think in a typical month, from my parcel, I might get L$100 from dwell. That is a fraction of one percent of what I make in a month in sales.

Residents buy more from Lindex in a typical day than dwell pays out to every land owner on the grid over an entire month.

What is everyone getting worked up over?

- Jon

Some of us have been around SL long enough that we have seen several of these sorts of changes. There seems to be a pattern.

First some sort of funding by the LL is removed

People get panicky, threaten to leave, predict the downfall of SL, (insert personal favorite chicken little reaction here)

Some people scale back opperations; other people take it as an opportunity to expand opperations. Some even do leave.

New people come and having never known how it was before (insert crises here) go about their Second Lives.

In the end SL goes on and usually with very little change. There will be big clubs and malls (names might change). There will be parks and other not for profit builds. The current fashionable game of the week will still be there. People will buy clothes and other things (why not get that look always wanted in RL but never had the body for). People will socialise (in their chosen way sexual or not).

End of the cycle its a blip on the radar.

Dragon Isle won't even notice the removal of the approx 2000 L$ a month it gets in traffic bonus. Our business model never even included it. If people like what we make and sell wonderful, if they don't then they don't. Dragon Isle is about our family being together and being creative together. Never has been about money. For us, outside the amusement factor of chicken little posts, this move by LL is a blip.

This will have no effect whatsoever for our business for one simple reason: Our business model is not base on subsidies. The Dreamland business model is very healthy and after move large part of our operation to China we are in very good position to compete, even at tiny margin.

As one sidenote: within next 6 months and with more and more hobbyist play the "land game" for fun or status, at ACS we even expect land may just become one advertising medium for other services, including several new key service that we plan for summer. The huge profit in land, such as during past 6 week it was possible, I really consider something that will soon be part of SL nostalgia history. When I started, the "land baron" was generally harass and discriminated in the SL community, which allowed good profit because nobody enjoy the profession and nobody did it for the fun alone. By now it has become almost some status symbol and more and more people do for free or even at loss just to be allowed to carry the title "land baron".

So do the traffic incentive matter? Not at all. The future revenue stream that matter are not directly relate to land anyway. There are the much more exciting things

Eh, I think is a bad idea, SL will now be all about shopping and sex. I suppose some clubs will remain, but really, I have yest to see any improvement in entertainmet, or in sl culture in general since the DI went away. It is the same here. Sure the all holy capitalists are pleased, the sacred cow of the linden goes up, and a few people will continue to make a lot of money while the rest of us sink money into SL. The whimsical builds that were fun to explore and served no purpose will dwindle. And of course there is always the ever present newbie question of "what do you do in SL?"

I think everyone should really sit down and try to answer that question. Its not a about what SL is, its about what do you do in SL. right now its less and less, besides work. I think if I came to SL today, I would not stay. Right now SL is about the people, not the enviroment.

I wonderwhat happens when people figure out that SL is entertainment for most residents. And the amount of available entertainment dwindles. Ah well its all good. There is always DDO.

When people get serious about SL as a platform, we will do awway with mickey mouse money and forced last names, and tie the price of inworld things directly to the dollar. Hell then SL might be a tool for education and business.

I guess it's going to be like RL. If you want to create something beautiful and free you either do it out of your own resources, or you convince other people that it's worthwhile and get them to contribute resources.

If this is the case, how do you account for a daily average buying of around L$7,000,000 per day on Lindex?

Who is buying all that money? It sure as hell isn't the land barons, or the content providers. It is the "average" residents.

Do me a favour, everyone. Go to the Lindex market data page, and change the view of the bottom graph (volume) to 'all'.

Notice a trend? People are buying Linden dollars, in droves. More per day (on average) than dwell pays out in a month. If you think stopping the addition of a paltry 4 or 5 million Lindens per month in this economy is going to make any difference to the average resident, I think you're dreaming.

- Jon

I understand that you're frustrated, but I know of several amazing builds and free hang out areas that are completely self-supported by the owners - and I don't get out much. I'm sure there are many others, especially since size is not the final arbiter of quality.

Because you're not the only landowner and content developer on SL. Some are such groups as DREAMS, who operate on a shoestring budget. Their traffic/dwell contributes greatly to their continued existence. They offer CONTENT, not sales or land rentals. And they're the ones that dwell/traffic was intended to encourage in the first place.

Forcythia is the land manager of Elf Clan, so I'm not all that aware how everything works these days (I set up the rental system, but it's been a while since I've worked in it). So I don't know how this is going to affect our bottom line. But we have four sims. If we pulled $50 to $100 per sim prior to now, how much is that going to cut the affordability of our sims? It's difficult for me to judge, but I know it will. Forcythia has indicated it might be a chunk.

When LL first announced the concept of removing DI, some people groused, but LL promised to come up with something that actually focused on those people with content. Far as I can tell, no hint of such system is even on the stove. Request from several for comments on this have gone unanswered.

Since Elf Clan is a non-profit, very-high-content group, where does that leave us and others like us? Yet, we do help pay sim fees through land rentals and hosting a Merchant Guild. Where does this leave those who don't, such as DREAMS and BRIGADOON and other such sims?

Time will tell. But sims have closed down in the past due to unbalanced, unexpected changes on SL. Some people take the realistic, corporate viewpoint of "It won't hurt SL or Linden Lab. There are always new users, always new content, always new people buying sims." To be frank, that's true. But I take a more humanistic view: what about those people who have worked to make SL what it is? And will that future content be as rich as it is now?

When LL decided to cut event payments, we saw an amazing increase in the number of events... and an equally amazing decrease in the quality/variety of those events. Many of the people who were well-known for holding fun contests and events, no longer being able to compete with the clubs for prize funds suddenly dropped from the face of SL, leaving "Nude Tringo" as the choice of the day. Some point out, "SL is bigger and has more users than ever before. So what?" My answer: "Is it better?". And have we learned from history?

The snake is eating its tail. It can't go on forever.

Our resort (it isn't a club though there is a club in the sky if you really need one) includes the following. I'd say it is beyond excellent.

~ A library made by SL storytellers who have been meeting weekly, for over a year, at the spa to create spontaneous fiction (visitors are free to grab as many stories as they wish from the book dispensers).

~ A recreation of the ancient Lighthouse of Alexandria

~ Beautiful architecture and underwater landscaping

~ A Siren's Grotto where people can go to cuddle or float.

~ An Underwater Geyser Park

~ Underwater treasure free for taking

~ An art gallery featuring rl artists who are represented by the gallery in SL (designed to raise exposure for rl artists and give residents access to high quality paintings without copyright violation)

~ Café, Roman Bath, Gondola boat docks, Coral Reef

~ Mudwrestling in the sky club & sunken tomb

Events include:

~ Cirga Control's Name That Game contest every Tuesday night where participants listen to the videogame music and try to identify the game. The prize is an exclusive design by BareRose, found nowhere else in SL.

~ Tuesday 6-8 and Wednesday 9-11 are creative storytelling events.

~ Saturday nights Digital Enigma spins and plays the movie quotes game with participants. Prize: an exclusive design by Munchflower of En Nomine, to be found nowhere else in SL.

~ Sunday Afternoon Classes on Hair making, Avie Customization, New Resident Q & A, & Marketing in SL

~ Sunday nights Live Music and Screenshot competitions

~ Spa level with steam room, massage rooms, manicure station, etc.


The Phoenix Spa Resort was what I gave back to SL after winning the Vive La Evolution contest more than a year ago. It's had a rich history in SL, having hosted sceners' competitions, groovy poetry nights (replete with bongos and berets), fashion shows, treasure hunts and much more. We'll see if this is something SL residents are interested in supporting. If it isn't, well it was fun and thanks for all the fish.

Anshe, while this may not affect you or your company, you and your company are not the ones this incentive was created for in the first place.

You're not a content provider. You are a skilled businessperson. Your whole thrust on SL is making $$$. While some of your land may have generated traffic/dwell due to the efforts of people who rent from you, it's not likely such was a major part of your business because your company never focuses on content.

Not everyone is Anshe Chung. Not everyone owns islands for sole the purpose of making a profit. Too often people consider only their own situation and not the overall effect of something.

One user back there made what was, to me, a very tunnel-vision statement. He brought up the basic concept that "this has all been happened before and there were doom cryers then it came and went and SL didn't change for the worse." I'm sorry to say, SL has changed for the worse. It's bigger, there are more people, but it is by no means as much fun as it used to be. There is not as much content, there is not as great a variety of events. At one time, checking events was one of the first things people did when they logged in. I've had so many people tell me they don't even waste their time any more. Every time a decision like this is made, it impacts SL CONTENT as well as the people that work hard to provide it. That affects SL in general... and eventually, possibly your profit margin.

I enjoyed the comment Gabe Lippman made: "The snake is eating its tail. It can't go on forever."

While you personally may be able to ride the wave of such decisions... that is not the case with everyone. Elf Clan will probably get along ok, with some informed shuffling and management. We tend to survive. But I wonder about others?

So yes, this decision wll have impact on SL. You personally may not be affected, and you may never even notice it since your focus is primarily on business... but the impact will be there.

As Perse's events manager, I want to add to this post.

I'll work for free cause I love Perse but granted, its not going to be as hard as I bust my ass now. And I probably give about 15 hours a week to the Spa. Sometimes more. But I'm not the only expense.

Event hosts cost money. Prizes cost money. Live musicians cost a LOT of money. DJs cost money. All these things that we provide cost money to us. Yet we are the only people being pressured to provide these things for free.

At the Community Fair being hosted by Dreams, the Phoenix Spa is hosting an entire day of content on the 22nd -- and when I say an entire day I mean 10 hours of content. I know of very few other venues able to do this. And this is varied content too -- storytelling, educational classes, DJs, picture contests, music contests, etc. All come with gifts and prizes. We do not receive a dime for doing this. Yet we will pay our hosts, our DJs, provide prizes, do the ground work for the booth and setting up the stage, and I'll give up my entire Saturday to be on site and making sure things run smoothly.

Dwell and DI at least enabled us to break even. Hopefully, we will be able to charge for events in the future but without an effective events calendar, without people willing to pay, with people posting that all content should be free, I have my doubts. It'll be sad to see it go but at least I'll have my free time back.

People complain about spending L$20 buying a piece of furniture from a store. What makes you think they'll want to spend L$20 going to a live music concert or a club?

The same people who want 'something for nothing' as freeloader basics on camping chairs are the same people who won't spend any money on decent content or events because they expect everything to be handed to them on a plate with nothing given back.

Lewis

Damn, Vivi, you are worth 10,000/week and if I had the dough, believe me . . .

But I'm willing to see what happens. We'll see how the landscape shifts, and I'll still be paying your salary. I know you don't do it for that, though.

It's like this little town opens up a shopping district and to get shoppers to go there and to beautify the town, they give plots to community gardeners. They even provide incentives to see who can make the prettiest garden through a rewards system.

Then the town decides that it doesn't want to pay that much for gardens. People start to resent the gardeners. They say to them, Ok, we're not going to give you incentives anymore to garden, but make stuff of interest here and we'll let you keep the cheap rent (they begin to nickel and dime the gardeners).

Then one day someone decides hm... well if I can make whatever I want here, I'm just being paid by volume of visitors, maybe i'll put in casinos, camping chairs, bingo games! The shopping district is less pretty. The people of the town are unhappy. Now the sentiment against the gardeners (still trying to garden in the shade of the casinos, etc) has risen to a fever pitch; so much so all the community gardens are then charged rent. The shopping district shop owners say "Hey! That's a good price on rent! More shop space!"

Except...

Now there are no gardens. There are just shops.

Glad you brought this up Vivianne. Sometimes one has to wonder. Last night LL decided to shut down logins and perform system maintenance during PRIME EVENING hours... at the precise time Dreams Fair was scheduled to have their Opening Ceremony. As a result, performers couldn't log on, attendees couldn't log on. Was Linden Lab totally unaware of Dreams Fair? Was it essential to shut down the system right then to perform maintenance? Have to wonder who made that decision and if they considered how many people had worked for WEEKS organizing this major event. (I know, I'm grousing, but... )

Elf Clan is hosting Sunday the 23rd and like you, hours and hours of event activity. I personally spend from 4 to 8 hours a day average on SL (sometimes 12... guh) and almost all of that time is spent helping people in Elf Clan, newbies, helping others develop events or adding content. As I mentioned to LL, start removing the incentives for spending that kind of time on SL, and people will start finding other ways to use their talents. I can't afford to spend 8 hours a day on SL just for giggles. DREAMS doesn't host a sim just for the recreation of it; they're trying to help people. Every incentive drop hurts such groups financially (loss of ratings bonuses, loss of event funding, now dwell/traffic). They're willing to donate the time, but to expect them to donate the funds to entertain Linden Lab customers is a little much.

I wasn't against cutting ratings bonuses. That was an abused system if there ever was one and the primary ones that complained were the ones that were abusing it. I opposed the drop of support of events, because event holders are, in effect, helping Linden Lab draw people to their system, which makes LL money. I'm not specifically against loss of dwell/traffic, so long as something is put in place to replace it for those that deserve it. It costs thousands of dollars to host a sim. But when content-rich, non-profit groups can no longer afford to do so, those sims will shut down. There will be no more Dreams Fair, no more Elf Clans or other such groups. And that will be a shame.

Actually Lewis, they do so all the time. In my live performances I find people can be fairly generous with tips (relatively speaking). But that is an exception: try to charge people L50 or L100 to attend a standard event and they'll likely scream. Dunno how that will impact the long run, but bottom line: Linden Lab is a business and runs SL for a profit. There is some investment that should be expected in that. You don't strangle the people who are drawing folks to your business.

This is one of the most intelligent illustrations I have seen in these forums. And this is exactly what's happened over the last year.

I did not say it has not changed for the worse. In fact I was careful not to.SL has continued that is what I said. It evolves and changes better or worse but the ending of a bit of funding is not the end of SL.