Does WoW Token spell doom for Gold Sellers?
World of Warcraft has announced that the WoW Token will be released shortly after Patch 6.1.2. The patch was introduced this Tuesday, March 24th. So, what does this mean for gold sellers?
Let’s find out.
How Will WoW Token Affect Gold Sellers?
If you’re a gold seller, the initial tokens may affect your sales. After all, clients may go straight to Blizzard for their sale instead of you – it makes sense – especially for first-time buyers. Sellers will find that they’re in the midst of a price war with Blizzard. This means:
- Sellers will have to adjust prices.
- Fluctuations, especially at first, are expected.
- Blizzard may throw down the ban hammer.
Blizzard has been known to lay down the ban hammer when it is in their best interest. As a gold seller, you know two things:
- Blizzard knows that gold is being sold.
- Blizzard isn’t willing to lose a subscriber – or wasn’t willing to – due to selling gold.
Blizzard may take a harsher stance against gold sellers now that the company is essentially selling gold itself. This means in the initial months, gold sellers will want to keep a close eye on the market to ensure that their accounts are safe.
Will It Still Be Profitable For Gold Sellers When Wow Tokens Come Out?
As a gold seller, you’re making a decent side income or maybe even a full income off of your gold. You don’t want WoW Token to cause you to lose your revenue. The one major thing that we know about the token is that:
- Blizzard WoW will need to keep the price near $14.99 (its subscription price).
- 23,000 in-game gold is priced at $14.99 on average.
- Blizzard will determine the token priced based on the Blizzard economy.
When you think about it, farming 23,000 gold is a breeze, and a lot of players will be able to maintain their subscription by buying tokens without ever needing to pay again.
One big mistake that MMO-Champion is reporting is that the WoW Token will start at $20. If you’re scratching your head, you know that this makes no sense.
Players are not going to part with $20 to buy subscription time – it doesn’t make sense at all – unless the gold return is massive.
This big misstep by the company is good news for you.
Now, as a gold seller, you should be happy with this news. Why? Players may not be willing to part with over 30,000 gold to buy a token.
If you aim your prices a little lower and help the player save just a buck or two, you’ll beat Blizzard at their own game. This is where the price war will begin.
Blizzard can’t make prices too cheap. Otherwise, they’re killing their business model.
Everything is mere speculation at this point, but we do know a few things:
- Tokens can only be sold once on the AH. (its subscription price).
- AH prices are determined by Blizzard.
- If you sell gold for cheaper than the market rate, sales will remain consistent.
Think about it for a minute. When a person buys a token, they will want to exchange it for gold.
There is virtually no reason to buy a token with real money when the price is more than the subscription price aside from exchanging it for gold.
Essentially, buyers are fronting their money for someone’s game time.
If the current price for a token is set at 25,000 gold and you’re selling the same amount for cheaper than the $20 announced earlier, you’ll win the pricing war.
You’ll still be able to make a profit if you play your cards right. Better yet, you’ll be able to exchange your own gold to buy game time to keep up your gold selling. It’s really the perfect recipe for gold sellers.
Conclusion, Players Will Still Use Third Party Sites. Why?
Whew, it’s a lot to absorb at one time, right? There are a few other points that I want to mention to further prove the point that as a gold seller, you’ll still be able to make your money – maybe even more.
Players Make Small Gold Purchases
A lot of players simply want gold for a new epic. This means 5,000 – 10,000 gold. Even the best BoE epics on the AH are 15,000 – 16,000. Large purchases of 100K – 1M gold are not the norm. Since the WoW Token is priced at $20, most gold sellers will still have a steady stream of clients.
Gold Sellers Can Still Liquidate Assets
If you’re a part-time gold seller or you know that mats are going to provide you with an influx of gold when a new patch or expansion hits, you’ll be able to liquidate your gold for money. Gold will always have a physical currency value, and gold selling sites allow you to make sales to 10 million World of Warcraft subscribers.
Prices Will Be More Competitive
Blizzard wants to start controlling the price of gold. Players will be the main beneficiaries as gold prices will fluctuate a lot. As a seller, it’s expected that you’ll be in head-to-head competition with Blizzard and may have to change your pricing weekly or monthly to keep up with current WoW token rates.
There’s even a chance that this will raise the rate of gold slightly, but I wouldn’t bank on it.
Overall, I think as a gold seller, you should be prepared for the WoW token.
This means that you’ll still be making a healthy profit, but you may not make as much money as in the past. You’ll also want to be prepared for the worst and have a lot of inventory ready to sell at rock bottom prices.
With the token being sold for $20, it’s safe to say that you’ll lose some sales, depending on the going gold rate set on the AH.
Blizzard is smart, so they’ll be keeping a close eye on the gold selling market and trying to ensure that they maintain revenue numbers by selling tokens. Your best bet is to keep a close eye on the market and undercut Blizzard in terms of gold cost per dollar.
If you’re good at playing the auction house and under-bidding others, you’ll have to make this transition in real-life with Blizzard calling the shots.