Friday, May 13, 2011

GPH is a LIE... GPT (or PPT) and TPH are the real winners...

So wandering like a Star Trek warrior accross strange new blogs, great unknowns and into new arenas of bloggers... 

GPH IS LIE...

We can all twist math and number by exclusion or terminology to make a case for many things that sound like awesome ideas and later find terrible results... Raw weekly stats over a long time that you can view from Stokpile, show that he does some collection of many little things well...  and has so for a long time.

GPT/PPT and TPH after the cut, the rest of this post is longer than I normally like... just saying go get a drink first...


number are roughish guess-timates
  • Questing (dailies) you make 1K/hour (quest rewards and vendor trash greenies etc.)
  • farming you make 2K/hour (sell raw mats and vendor trash etc.)
  • farming for crafting you make 3K/hour (sell crafted products from farmed mats, sell vendor trash, greenies etc.)
  • Pure AH raiding for crafting and profits is 4K/hour ( Pure crafting, your time is spent in one of the following places, AH, mailbox, bank, guild bank, vendor for mats, vendor to sell (maybe))
  • Mixed media Goblinish AH PVP (your time is mixed in the same as above, and you also add in vendor flips (pets) and other gold making enterprises, multiple toons, to handle multiple processes...
You do make more on the last choice when properly executed, watched, researched, as well as correct market reactions.  But many still do not share that success, and revert to a "less risky" means above.

If you are a goblin by my own loose definition of goblin, you never stop working on making money... AND you do other things in game beside make gold, raid, PVP, leveling, achievement-go-getter etc... those are the things that drove us to find ways to get more gold to begin with... unless someone out ther can tell me that, they started to play wow to make gold... (non botter, non gold seller) for they are likely not really goblins...

So if you NEVER STOP... how do you really quantify your time...  you cancel post between heroic or BG ques... you craft and process parts before the raid starts and in the middle of the raid for 2of the 5 minute break, you read blogs, forums the UMJ, and patch notes from work, on the train on the way to work, durring your lunch break...   How much time do you REALLY spend...  

I submit that if you HONESTLY and massivly eclipse the 5K estimate of GPH online, like you say you play the AH 1 hour a day strictly, and make 15K/hr, and 105K/wk...   this week, last week and for the previous 10 weeks prior too..  So, if thats your numbers, you have made 1Million in less than 3 months, spending ONLY 1 hour per day...  cant say as I would believe you...  Maybe a server top 5 guild, on a high pop server and GDKP runs... but pretty sure you will not ever be able to do that for 10 weeks straight, and then you have to back it up 6-10 more weeks to really look at it as far as the oportunity cost to have the gear, experience and knowledge to carry the payday through an instance.

I can make nubers and twist em... and make ROI sound great... 500% ROI for the fliping of a vendor pet that cost me 40Silver to buy, means I sold it for 2.6gold(ish)...  Wow, 2gold profit...  GREAT ROI... now factor in the time to get the pet and list it and the oportunity cost and dont forget the Oportunity lost...
Or, conversly, spend 200gold on mats make a scroll, and sell for 265gold  thats only a 25% ROI... (AH cuts)  but which do you want? 

Enter what really adds up to real profits... Gold Per Transaction (GPT) (or Profit Per Transaction) and Transaction Per Hour minus costs and losses.  Costs are you mats.  Losses are your AH posting fees when you cancel post and also your AH cuts on the sales you make.

So, what makes money... where ever you can get those numbers to rise...  We know the second to be true... enter the camper... he increases TPH and decreases yours... = ^Profits... Gold per transaction... high end scrolls? High end risk is perceived, but IMO just not true....  when you list and sell ~100 scrolls/day... putting a high cost scroll up that you may have to eat for 2K mats... not that big of a deal... Its an oportunity cost and a calcuolated one at that...  So. selling 1 landslide for 500 profit, or 2 hurricane for 250 profit each, or 5 mending for 100 profit each... well I do them all... :-)

Ramble ramble... you made it this far... grats now I stop

3 comments:

  1. I was there with you until just about the end where I got a bit lost. I need to re-read it but I like the general idea that you're going for.

    Having a metrics other than "GPH" (which I'm not a huge fan of) would be a blessing to gold-making theory. Keep it up.

    Also I added you to the World Of Warcraft Gold Blog Directory. If you have/get a twitter and a public contact email/page/form let me know so I can add them to the directory.

    I'm off to read more of your posts. #contentnomnomnom

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  2. new post added to work out what i started to say, and yeah, rereading my post... I got lost at the end...

    About all that technical contact stuff... your making it sound easy... there is the blog, and that works for me for contact atm... if they cant say it publicly... its likely not worth saying, and if they say publicly what should not be said, or in a way that it should not be said... thats easy to handle...

    Thanks for adding me to the list

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  3. I have decided e-mail contact can be good... and it has been added.

    achieve.commitment.blog@gmail.com

    ReplyDelete