Helping our Small and Medium players
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by lucifer_ultionis
There are many big players with TONS of CAD! Why don't they invest them in raw material companies? The rough ball return period on investment is 90 days. (That is if you invest in raw materials in Canada, you'd need around 90 days to get your money back)
That's not a very good deal even if you don't take into account you'd have to forgo health points EVERY DAY for working more instead of fighting.
How much should you invest in raw material companies?
Should you give out a LOAN to somebody else and charge some interest? Sounds good, but how much interest and how risky is that? I'll tell you the truth: is very risky!
Clearly younger players would want to use loans for their health points don't generate so much damage! But giving out a loan to younger players is EVEN RISKIER! Younger players are very much likely to default and even bigger players run the risk of eDying (abandon the game). And there's also two other classic risks: the moral hazard and the adverse selection.
So I've been thinking... maybe I can be a fidejusor (guarantor) for a couple of young players myself. Bigger players are more likely to trust me for a loan, and in case the small player defaults, I can pay back the entire amount.
So are there any young players who would want to take out loans for development? Please comment! (please shout this to your Canadian friends too)
Is there a young player you would like to help out but you're afraid he/she will default.. comment too! I won't charge any interest, so why not secure your loans?
Lucifer
(please shout this too ... if you are willing of course)
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Good work Lucifer
Thanks Homer
~hyuu~
The Bank of England has given out close to 1 million GBP in interest free loans over the last couple of months, the majority of which were loaned to new or newish players.
Based on that, we've only had a tiny fraction of the GBP lost (only two loans) so even loaning to new players is quite worthwhile provided they know what they want to buy and how they plan to pay the money back.
A guarantor is also a good idea, I've done that for some players whom I didn't feel comfortable loaning GBP (or gold) to without some type of financial security.
I have been away from the game for a while so this may seem like a dumb question; did the game admin take away the contract arrangement between players? I used to own banks and businesses worldwide in the previous version and any loans made were guaranteed by the contracts. Just curious.
@Neil contracts are long gone my friend, long gone
Yep. Admin couldn't be bothered anymore with Contracts.
Great idea!
Contracts were removed something like 18 months ago, Neil.
I think you know how I feel about loans, Lucifer. Give me about 10 days and a list of names and I'd be more than happy to help.
On the other hand, it might be time to raise the idea of a government loan program again. It seems to be working in the UK so we may want to do it just to keep up.
We just need to make sure whoever gets put in charge doesn't disappear or something...
I'm always looking to take the next risk.
Sign me up for loaning.
@Chochi - I lol'd.
Chochi, the Gov funds would surely help, but until then I'll try to help out small players w/o Gov help
I just hope to find enough small/medium players.
It sounds great. I was thinking about it long time ago but I didn't find any solution to the high risk problem. If you find I way to solve that problem I'll be happy to help to develop our new players. Also, I recommend you to start a mentoring program to teach new players how to avoid big mistakes and have more fun!
PM me for details please.
As an advice, Q1 raw material companies are the most cost-efficiency companies (and also it allow to new players work a lot = more experience points = quick gold = more companies). When they reach his "companies goal" they can start to "upgrade" those companies. I used this strategy to get my current money.
(Sorry for write to much)
No Q2 factories are more cost efficient. Yes you do get more exp from Q1 raw material but, you actually sort of want to be more sustainable. You'll need so much food to just work. You should try to build Q2 factories. Q2 factories and Q1 factories have the exact same cost-efficiency when building. I think it is more sustainable in the long run to build Q2 raw material companies.
Voted! nice article!
@Chriswen and @Jorge
I don't think Q1 raw companies are efficient if you take into consideration the opportunity cost for land.
I'll advise anyone who wants to build something to build AT LEAST q2 raw mat companies or q4 but not q3 for 10 gold, unless the gold becomes really cheap, which is not going to happen anytime soon 😃
I agree with Q3 or Q5 companies: invest gold in companies is a bad idea to start. And Chriswen, Q1 and Q2 companies have the same cost-efficiency if you plan to keep everything you build. If you plan to earn enough to train and fight with everything only count Q4 and Q5 companies. Q1 companies allow you to earn more money (and gold to sell) and you'll lost less money when you dissolve companies. Maybe I'm wrong but that strategy worked for me.
Let's do a little math here:
At this point, one salary in eCanada is 185 CAD.
One FRM company produce max. 450 FRM, which means 157.50 CAD
One WRM company produce max. 350 WRM, which means 120.50 CAD.
If you hire someone and you give them a salary like is now on Job Market, please tell me where is the profit here? And I speak about the big raw companies which it costs 35 gold/each. I didn't think at smaller companies than these. At Q1 and Q2 raw companies it is non-sense to discuss about it.
If only you works in those companies it's ok, but in how many days you will made some extra money? I have my doubts about those 90 days that we are talking about. Maybe if that young player just work every day, and do not fight because he don't wants to consume the raws produced, but to sell it (in order to recover the investment).
@Sweeta... if you inverst in a grain company q4 8500 cad (7500+1000 for the land) and you earn 315 Raw material , you get 103 Cads per day
8500/103 = 82.5 days. That's the 90 days I am talking about.
It's too bad this article's timed out because it'd be great if more people could read this kind of thing.
It takes 70 days at 0.34 per food raw material to make your money back for grain farms and fruit orchards. (If you managed to get 5 of those at once and got lucky with toolboxes you might be able to earn your money back in less than two months.)
No, there's no money to be made in actually running a company for profit. The profit margins are slim even for Q5s. But that's not the point. The point is that in less than three months you can make your money back and after that it's pure profit which can be used to buy either more companies or more food and weapons to help you fight. A little bit of investment (ok, possibly quite a lot if you go all in like I have) will pay huge returns.
Yeah, it took me a while to get here (but I went overboard with my food companies) and now that I'm here I stand to make over 3 gold a day in profit. I can even start Napping (though I probably won't).
Well Chochi, I found one medium player so far. And I guess this is better than nothing 🙂
Maybe you are right, lucifer_ultionis, but it seems that in 90 days you will not made nothing than work, no fight, no nothing? Just sell the raws? When a player have raw company he used to work at his food/weapon company with this raw, isn't it? Or you don't eat food and you don't consume weapons in this time? What you have exposed there is just a simple calculation of produce/sell raw, or a medium player, as you say, don't play just for produce/sell raw. Interesting way to play the game.
For example, for me economic module is just a way for progressing in military module. I don't want just profit, I want profit for to grow up faster in rank/damage.
you're right sweeta i totally ignored the the food costs for working there. you've pointed out right.. but still the calculation yields out to around 90 days.
the point is that 90 is return to the investment and if the prices of raw material will continue to be the same you will get around 100 cads per day as income flow. and as you say u might either buy tanks with them or train.
as with any other investment, you get the principle of forgone consumption.
Great article
It takes money to make money but once you've made that money you can buy food and tanks for fighting. It takes money for those things, too. By investing some of the money you make in production you'll be able to afford more fights with better quality weapons later.