Three Legged Stool

Written by: Aleithiawow.

Running an effective and profitable gold business boils down to three essential principles. Without one of these "legs" in the stool, your business won't be as profitable. So what are they? Optimization, Reducing Costs and Diversification.

Optimize

Ford Motor became a powerhouse in the car industry not because they had the best product, but because they were the most efficient thanks to the assembly line. They were able to crank out the most cars because they optimized their process. Setting up your business requires some optimization. Two quick considerations:
  • Profession Pairings: Jewelcrafting + Alchemy or Enchanting both have some nice synergy. If you make a lot of jewelery to disenchant, save yourself some time and mailing costs by pairing them up. Or maybe you're transmuting Carnelians into Inferno Rubies? JC/Alchemy might be best then.
  • Daily Routine: How many characters do you need to log into each day? Depending on the time of day, load times can eat into your routine. Balancing multiple characters and professions can be difficult. Which ones need to be "craft on demand" because of space or volume limitations? Which professions can you get away with crafting only weekly and storing the goods in the bank or in mail messages?

Reduce Costs

To turn a profit, you absolutely must sell above your cost. If someone is constantly undercutting me for less than my cost, I have to wonder: how are they doing it? Probably they have lower starting costs than me. If you can't drop the price more, how can you reduce the costs? Consider:
  • It's been well documented that there are market swings. As you gain capital, start buying out supplies when the market is low and use your stock to carry you through the high points. Use a snatch list of some sort.
  • Build relationships with farmers and suppliers. Negotiate a price and then give them some incentives to meet. "I'll buy Pyrite Ore for 60g/stack. In addition, I'll supply you with 1 free cut gem of your choice for every 20 stacks." People see that little bit extra and might lower their price for the allure of the free stuff.

Diversify

Diversification will help you keep a consistent cash flow going. Gem prices are down this week? Try focusing on enchanting scrolls instead. Enchanting Rods are down? Start looking for a new market. I like to master a single industry before going all out in another market. However, while I was busy building my gem business, I also started testing the enchanting scroll market. Now that gems are on auto-pilot, I'm focusing on optimizing scrolls and testing the waters in Darkmoon and Mysterious Fortune Cards.

Which of the three core practices are you strongest at? Where are you weakest? What's your plan to improve?


Do you want to write for JMTC? Send in a post to Markco and if it makes it past the initial screening process then I will publish your submission on the blog. JMTC pays 50% commission to writers on the day that their post goes live.

3 comments: on "Three Legged Stool"

  1. Okay, I am good at making wow gold with daily quests. But just good at this point :(

  2. Daily quest can be very profitable too.

    Doing 25 dailies 365 days a year for 13g per quest will give 118.625 g. If you have JC as profession than you can buy a chimeras eye every day for (assuming a AH price of 100g) another 36.500 g per year. If you are still doing the argent tounament dailies you can buy pets. Lets say you can buy 1 pet every 2 weeks (don't remember if this is correct) and you are able to sell them for 1k each that will be another 26.000 g a year.

    Just doing your dailies can net you more than 180.000 gold per year. And we didn't even start with cooking and fishing dailies or the possibility to have multiple toons. Having 3 toons can get you above 500k in one year by doing dailies and posting about 3-4 auction a day.

    Sounds not too bad to me.

  3. Seriously? The gold per time spent of doing dailies is terrible. I pull at least 13g out of the ground every time I right click on a herb or mineral deposit in twilight highlands. Sometimes upwards of 60g AH value undercutting everyone. If you have some other reason to be doing dailies such as for gearing up then the gold is a nice compensation for time spent but otherwise your time would be better spent playing the ah or using your professions.

Post a Comment

Insider Gold Strategies

Enter Your Name & Email Below to Receive My 7 Theories On Making Gold... Guaranteed to Put You Ahead of 99% of Players Out There

 

 

Recent Comments

Subscribe to recent comments

Labels

Blog Archive

Featured On: