LindeX - Input and Output

On Wednesday, May 23rd, the LindeX started with a volume of open sell orders of:

L$ 32,783,680

Volume of open sell orders yesterday, June 8th, at midnight:

L$ 20,103,009

Total amount of filled sell orders (demand) for this timespan:

L$ 197,142,551

Input (supply) to the LindeX in that timespan: 20,103,009 - 32,783,680 + 197,142,551 =

L$ 184,461,880 (93.57 % of sales)

Or in other words: The demand is 6.87 % higher than the supply.

Total income on just the sales fees alone to LL:

$20,000US. VOOT! Go Philip

Looks like LL just figured out how to become profitable

Just some sobering thoughts calculated on a napkin...

I vaguely remember one of the town hall meetings or an post to Second Life Answers, indicated that Linden Labs employeed roughly 100 employees. Granted, this probably includes everything from the lowly intern making minimum wage, all the way up to Phillip -- but even so, the average salary of all employees put together will probably be at least $30,000/year.

It's highly likely the average is higher. But to stay on the safe side of things, begin with that. That's $3 Million a year in salaries alone, or ~$250,000/mo

As for the Lindex transactions, for every CC payment Linden Labs processes, the CC processesor is going to take a cut. So the $20K US in those Lindex fees, is before that cut. Which can be anything from .75% to 3.5% per transaction.

Add in equipment, facilities costs, and all the other fun things Linden Labs needs -- and I'd ball park their minimum revenue for pofitability at closer to $1 million a month (or more), assuming no new equipment costs.

Since you did not comment on the OP, I made it a bit more obvious.

Normal for any company. They exist to make profit. Any intelligent company would employ the services of economists and so forth in into to generate more money into the future AKA Return on investment (ROI) strategies. They are making changes as a company dealing with a different type of economy with little information on how this kind of economy reacts. That means that the changes will be very slow, as they adjust, wait for reponse, and adjust some more. That is the only real way to see how the effects will ripple. Any economy that takes drastic measures of correction risks collapse and gains no knowledge on the results of any one individual measure.

[Edit] I highly suspect this is why they took the small measure of suspending stipends on free accounts, but only after a cutoff date. Small change to see the effects changes have on stipends.

That's over 2 weeks (may 23rd - june 8th) So $40 k in a month.

in the same time amount from premium account member fees: somewhere between $100-160 k

incidentally, if this shows that demand for L$ exceeds the supply under current conditions, then there's hardly reason for removal of stipends, nor is there one to expect further significant slide of exchange rate...

Maybe this is the result of the already removed/lowered dwell, and the influx of new accounts that spend the $25 or so needed to put in initially to buy up $L?

Quite possible... suppose we'll have to wait couple more weeks at least to see if this is some sort of temporary thing, or maybe a stable trend ^^;;

I think for now we can pretty much a guaranteed DROP in he graphs on Lindex over the weekend (rise in $L value) Essentially a rise in L prices. They'll probably go back up during stippend tuesday though. But hey, at least it's bouncing around 330 and not going up over 340.

I still think we need to come up with ways for people to make qick small amounts of money though. Noob stips were cut, and there's no getting around that.