Linden Lab To Change Fees For Buying Linden Dollars, Price Increases For Some

    

For those whom buy Linden dollars in larger amounts, you will soon be paying more. A few days ago, Linden Lab announced that starting Thursday April 22, it will change the way it charges people for buying it's virtual currency for Second Life. Instead of a flat fee for any amount, they'll be charging a percentage with the old fee as the minimum.

Effective April 22, the current flat buy fee rate of $1.49 will be replaced by a 7.5% buy fee (capped at $9.99) applied to the total amount of Linden Dollars purchased in each transaction. The $1.49 minimum still applies. 

So what does this mean? If you buy Linden dollars in amounts of $20 or less, nothing really changes. But buying more than that, you'll be paying more. For instance, someone buying $30 USD worth of Lindens, assuming an exchange rate of 250 Linden dollars for one US dollar, will be charged 7.5% of $30 extra, or $2.25, and so pay a total of $32.25 instead of $31.49. This is an increase of 76 cents. For $50 USD, the fee is $3.75, and paying $53.75, an increase of $2.26.

Linden Lab would explain it was trying to manage having to deal with expenses, such as "Investing in our infrastructure to further improve speed and cadence of update" and "Developing new marketing initiatives and entertainment partnerships to fuel growth,"and wanted to "manage these costs in a way that minimizes the overall burden on our Residents." While it was going ahead and taking some loss, the Lab stated they needed a way to make up part of the expenses.

The fee for buying Lindens last went up in June 2018, from 99 cents. It was the second increase in less than a year, in Novemeber 2017 going up from 60 cents to 99 cents, and in June 2017 going up from 40 cents to 60 cents. Part of the reasons for these increases were the reductions in sim tier charged to residents.

The fee for selling Linden dollars, which is 3.5%, remains unchanged. 

A thread was created in the Second Life forums about the topic, which as of the writing of this article is sixteen pages long. Checking the first few, a few residents complained, "LL are digging their own grave by raising the fee." But most seemed more open to explanations and reserved in their criticism, "It is all a matter of take it or leave it in the end. If you are not satisfied you take your business elsewhere. That is the normal procedure everywhere."
 
Source: Linden blog

Bixyl Shuftan
   

Linden Lab Raising Price of Premium Accounts, Reducing Group Capacity in Basic Accounts

Yesterday on Wednesday May 29, Linden Lab announced "Land Price Reductions, New Premium Perks, and Pricing Changes." But it's the "Pricing Changes" that are getting most of the attention plus The "Premium and Basic Account Changes."

The Lab announced "the difficult decision to make our first Premium price increase in over a decade." Their monthly rate was going up by over 25% from $9.50 USD a month to $11.99. Their quarterly rate was going up by almost 50% from $22.50 every three months to $32.97. And their yearly rate was going up by almost 40% from $72 a year to $99.

The Lab did say on June 3 they would be offering a "limited time offer" until June 24 for Premium account residents to renew at the old rate for one more cycle, including for those being billed monthly to switch to quarterly or annually and for those billed monthly to go quarterly. For basic accounts going Premium, being billed quarterly would no longer be an option. That option would remain only for existing Premium accounts.

Linden Lab was also increasing the credit processing fee for selling Linden dollars to Paypal and Skrill accounts from 2.5% per transaction to 5% (with a minimum fee of $3). In Nov 2017, it was raised from 1.5% to 2.5%. The Lab gave "increased regulatory and compliance costs" as the reason.

The good news for Premium account residents, Linden Lab announced that effective June 24, their group limit would rise from 60 to 70. The number of stored offline IMs would rise from 50 to 80. Unfortunately, Basic account residents would be taking a hit. Their group limit would be cut from 42 to 35, and their stored offline IMs would go down from 25 to 15.

This is the first time that group capacity for residents has been trimmed back. In October 2010, the limit for all accounts was raised from 25 to 40. In January 2011 it was raised to 42. In June 2015, it was raised to 60 for Premium residents, with regular ones still having a limit at 42.

The best news was for landowners. Linden Lab announced that the tier for full sims was going down again, effective June 3. For most, it would be from $249 USD to $229. The rate for grandfathered, or "bought-down", sims was also being cut, from $195 USD to $179. The $30 fee to add to the prim limit was unchanged.

The residents were quick to react, numerous comments in two threads in the Discussion Forums, "$99 Problems," and "What Are Your Opinions ..." There's also one in VR Universe. Needless to say, there were many expressing disappointment and anger, with accusations the Lab was acting out of greed.

For the blog post in full, Click Here.

Linden Lab Raising Fees to Buy Lindens, Will Raise Fees to Sell

By Bixyl Shuftan

Second Life is getting more expensive for it's residents. On the Linden blog yesterday, they announced that they were "making multi-million dollar investments in Second Life that will benefit Residents in the near and long term, while also ensuring that the virtual world’s bright future ahead is even more awesome than its 14+ year history has been. Exciting times!" This was followed by an announcement that there would be "Updates to LindeX and Credit Processing Fees."

Underlying SL’s user-to-user economy and the ability to buy and sell L$’s for real currency is a significant amount of ongoing work to ensure that everything remains compliant with applicable laws and regulations, while also preventing fraud and money laundering. This work comes at a cost, and we are adjusting related fees in order to help cover those costs and enable us to continue to invest in Second Life’s future.

Starting yesterday, the fee for buying Linden dollars over the Lindex rose from 60 cents to 99 cents per transaction, an increase of about two-thirds. Starting on January 3, the fee for selling Linden dollars will go from 1.5% per transaction to 2.5 percent, and the $25 USD cap on fees per transaction will be removed.

At least one Second Life businessman has responded to these increases. Oobleck Allagash, a co-owner of KraftWork and PocketGacha, commented in New World Notes that the Lab had "attacked those who work to create the SL economy by raising the fees to process payments nearly 67% overnight, but more importantly, removing the $25 cap which will, for larger brands, result in exorbitant additional costs." He questioned the reason for the increases, "what work has changed specifically that will require LL to generate millions more a year annually? Sounds a bit more like those that drive the SL economy are in fact now paying for the failure of Sansar."

The Lab did mention one way it had been trying to protect inworld businesses, "Recently, we closed an exploit that fraudulent gacha re-sellers had used. Our governance team can now catch them when they attempt the cheating method that we have already fixed." Though this alone isn't an explanation for why such a large increase.




To read the Linden's blog post in full, Click Here.

Bixyl Shuftan

Linden Lab Raising Fees to Buy Lindens, Maximum Fee to Sell

Second Life is about to get a little more expensive.

In the official Second Life blog on Tuesday, Linden Lab announced there would be an "update" to the fees for Second Life users to use the LindeX to purchase Linden dollars and the "credit processing" fees to sell Linden dollars for real money.

Underlying SL’s successful user-to-user L$ economy and the ability to buy and sell L$’s for real currency is a significant amount of ongoing work to ensure that everything remains compliant with applicable laws and regulations, while also preventing fraud and money laundering.

Investing in improvements to these processes and the ongoing compliance work required comes at a cost to Linden Lab, and we will be making some LindeX fee adjustments in order to share a portion of those costs with Residents active in the SL economy.

To buy Linden dollars, the fee on the LindeX is going from 40 cents per transaction to 60 cents.

To sell Linden dollars for real world currency, the current "fee structure" remains the same at one and a half percent with a minimum fee of $3 USD. But the maximum fee is going up from $15 USD to $25.

There was some debate about the issue on a thread in the official forums, some outright opposing it, others conceding the Lab probably had justifiable reasons to raise prices. One woman commented packing up and taking things to Opensim might not be a good ideas as on the Kitely grid "there is a 20% fee to sell on Kitely market and a 45 day wait to get your money to Paypal." and "there are many less BUYERS on Opensim so your chances of selling are possibly less."

If one takes the Lab's explanation at face value, their costs of making sure the transactions go smoothly while taking steps against "fraud and money laundering" are going up, either having to replace equipment, or get new equipment and employees as a result of new regulations or perhaps as a result of complaints about their service.  Hamlet Au of New World Notes suspected the latter might be a partial reason as he'd been hearing reports of some content creators suffering "financial crippling delays" in getting their real-world money from the Lab after selling them Linden dollars. So perhaps this is a case of the Lab responding to the complaints, but felt the users had to help pay for the costs. Hamlet also had another, sobering, explanation, "The Second Life economy is slowly but surely shrinking, so those who are still in the economy will have to pay more to keep participating in it."

In any event, the changes go into effect June 19.

Source: Hamlet Au

Bixyl Shuftan