Can you dominate the new WoW Gold microfinances?
Microfinances x multitude > few expensive sales.
Profiting in a long tail economy depends on your shelf space, your “factory floor” available, and your ability to implement just in time principles
Pareto’s 80/20 rule says that 20% of a population holds 80% of its wealth. In the last article I touched on how it was a natural rule of human nature. I spend 80% of my shoe-buying fund on ridiculously cute shoes that I will never wear. I wear battered old trainers most of the time, instead.
The 80/20 rule is also known on the internet as the 80/19/1 law. For example, on a bulletin board, 80% don’t use it, 19% read it, and 1% dominate the posts on it.
Unfair? Very. Natural? Very.
I’m going to venture a guess that given a large enough cross section of WoW accounts, 80% will be casual, 19% raiders and 1% hardcore raiders. I’m also going to venture that Blizz, by catering more and more for the casual players are alienating and losing their top 20% and this is backed up by the shocking statistics showing the straight decline of WoW-related searches recorded by Google since 2006. The release of Cataclysm barely amounting to a month-long blip.
To partake in the top wealth, you need to be the top seller. The second best gets much less than the 1st, and after a certain small percentage, your wealth, your profits, descend to peanuts quickly.
Peanuts aka microfinances.
On a smaller server, with lower competition, it’s easier to be the top cat, which was my situation on my RP server before I started concentrating on the larger PVE server. With a larger population, you need to fight. If you want to capture your market, you are going to need add-ons that you can use to develop just in time methods and minimise your overheads and expenses.
Let’s take a diverse amazon-style sample: With 1 item @ 5k, 2 @100g, + 800 @10g, you’re going to make 5k + 200g + 8k. That’s if your 5k item sells. Mr Big is going to undercut your 5k sale, you can just feel it. It’s not so much of a tragedy if Mr Small undercuts 5 of your 10g sales.
Just in Time means that when 100 of your 10g items sell, your addon can pinpoint and notify you to immediately restock. You keep very few in your bank, and make and list them only when they are pulled by market forces. This is opposed to you pushing 10 of every item on a regular basis, regardless of sales volume, requiring you to adjust prices depending on availability.
Some Long Tail items to research:
- prairie dog
- wool cloth
- purple lotus
- mithril ore
Just in Time is a japanese business model but built on the most ancient of principles: discover your customers need, and fulfill it. Finding those gaps in the market is your greatest challenge, and the reason that all these gold guides and free blogs exist: to help you spot those small gaps. You have to be smart, adaptable and persistent if you want to cover the long profitable tail of the WoW market. You need all the technology (addons) and advice you can get.
TL;DR You can’t be top dog, I’m already top dog. You’re going to have to be clever and diversify instead.