Posted by MikeT23 on 10/6/2015 1:17:00 PM (view original):
I'm not suggesting that they are considering pulling the plug. Just that they're not making what plague suggested. Or that HBD is all that profitable to anyone. We like the game but it's not a big money-maker. There's really no justifiable reason for them to run ads during the WS/playoffs. Or even present some huge marketing campaign via flyers on car windows at the mall. It's just not worth the expense. Which is one reason I think "Lower the cost" and "give away teams" are horrible ideas. Turning low profit into no profit is a poor business model.
Truth is, it would be better for them, and us, if they sold the game to an individual. I'd work pretty hard for 260k year running HBD.
The logic and math is flawed. It's costing WIS about the same whether they have 1 or 100 worlds. Adding another world is probably all profit as the expense is tied to the game itself not tied to the amount of worlds running. All business have expenses. Revenue-expenses = Profit margin. WIS expense is not tied to selling individual items so a path of selling bulk is the most profitable path to take.
JC Penny had a marketing idea of lets not have sales or giveaways but lets just sell everything at a every day low price. It turned out to be a disaster and the CEO eventually was fired. Your successful business models has sales and giveaways/deals that reward the customer and encourages the customer to return to their business on a future date and spend more money. My wife lives for Kohls 30% coupon that she gets twice a year, she then buys on sale and gets 30% on top of that, then she spends 50 dollars so she can get her Kohls bucks which gets her coming back again. She gets what she believes is deals and Kohls gets her business.
Currently WIS model is to focus strictly on attracting new owners to the game and not rewarding current owners. In the modern world smart marketing finds ways to bring in cash, while at the same time rewarding customers for using their services by giving them rewards that will entice the customer to come back again. I have suggested something along the lines of WIS bucks. Every time someone starts a new season they are given X amount of WIS bucks. WIS can then allow owners to use those bucks on worlds they are not currently playing. WIS can fluctuate how much it costs depending on how many openings. The more openings the less bucks to join. Getting the WIS bucks is tied to spending money on a owners current worlds. That is the core of almost every successful business model currently going on in the USA. Reward people for spending money on your services by enticing them to use your product again. You get a owner to join a new world, maybe he gets attached to the new world and spends money the following season, its happen many times with abandon teams.
FOX itself is huge, but a company like FOX is compartmentalized Where WIS has their own budget and they are probably accessed quarterly or annually for profitability directly and indirectly.
10/7/2015 2:48 AM (edited)