Who Realy Pays For Runescape?

[flyboymike22]

Before it even starts let me do some explaining:

 

 

 

1. Members should be entitled to better weapons, armor, etc.

 

 

 

2. Members should be entitled to new quests and a larger map

 

 

 

3. This is not an original idea, I have seen it on a few posts.

 

 

 

 

 

 

 

You hear it on both sides; F2P shouldn't get anything because they don't pay, members should get it all because we pay $5.00 a month. Members do pay 5.00 a month and you should be entitled to more privliges because you do spend your hard earned cash on the game and we F2P only have to suffer through advertisements. I used to be a member, don't play often enough to justify the money now, but I have seen both sides of it and there is one thing that I think not many of us understand.

 

 

 

 

 

 

 

Members DO NOT pay for the whole game for us F2P to enjoy, as a matter of fact, it is the other way around. We F2P'ers pay for the game for members by advertisements. Much more money is made daily or monthly from marketing than the five bucks Jagex earns from its members. Thats it, there cannot be an argument for the other side. Millions are made daily on the internet just by ad placement, not by membership. Granted, Jagex makes a pretty penny from memberships because of the size of the group, but that is nothing compared to the money the company brings in from advertising.

 

 

 

 

 

 

 

Prove me wrong.

[np_tyler]

Perhaps... but it would be suprising, considering most people don't like or just simply ignore those ads. But also, F2Pers don't pay, the advertising companies do, so we aren't really entitled to any benefits, if that's what you're saying... :?

[Slurpy17]

Perhaps... but it would be suprising, considering most people don't like or just simply ignore those ads. But also, F2Pers don't pay, the advertising companies do, so we aren't really entitled to any benefits, if that's what you're saying... :?

i think he's trying to say that jagex makes more money through advertising than members....

 

 

 

 

 

 

 

i had a idea when i read about something that jagex makes money per click of ad. why not make the game totally free and maybe a click instead every time you play :lol: would be cool

[ortiz9471]

Acutally, recently Jagex made a multi-million dollar deal with the ad company. That's probably for a couple years, so lets just say thats 1 million dollars per year. (could be lots more, could be lots less, but this is approximate.)

 

 

 

 

 

 

 

Now, Aren't there 2 million members? That's 10 million per month. Maybe there are only 1 millino members, that's still only 5 million per month.

 

 

 

 

 

 

 

 

 

 

 

Ok, big woop, my numbers are very approximate and probably quite a bit off. But my point is that Jagex makes way more money from members then the f2p group. Way more.

[flyboymike22]

What my main argument is that no, we don't deserve the new benefits, such as bank space or new quests, but we do keep this game going, not members.

[aznmidget448]

 

Perhaps... but it would be suprising, considering most people don't like or just simply ignore those ads. But also, F2Pers don't pay, the advertising companies do, so we aren't really entitled to any benefits, if that's what you're saying... :?

i think he's trying to say that jagex makes more money through advertising than members....

 

 

 

 

 

 

 

i had a idea when i read about something that jagex makes money per click of ad. why not make the game totally free and maybe a click instead every time you play :lol: would be cool

 

 

 

 

 

 

 

I highly doubt that's true, but haahaa, I'd love that :XD:

[keithkannon]

Acutally, recently Jagex made a multi-million dollar deal with the ad company. That's probably for a couple years, so lets just say thats 1 million dollars per year. (could be lots more, could be lots less, but this is approximate.)

 

 

 

 

 

 

 

Now, Aren't there 2 million members? That's 10 million per month. Maybe there are only 1 millino members, that's still only 5 million per month.

 

 

 

 

 

 

 

 

 

 

 

Ok, big woop, my numbers are very approximate and probably quite a bit off. But my point is that Jagex makes way more money from members then the f2p group. Way more.

 

 

 

(I'm not leaning towards F2P or P2P in this post. Just trying to work out a few things)

 

 

 

 

 

 

 

Well, I think the first thing wrong with your post is the P2P is 3 pounds 20p (no pound button) which is about $5, not $10. Next, 2 million members!? :P Just a bit over 850 000.

 

 

 

 

 

 

 

Using those facts, we can guestimate that Jagex brings in $4250000 a month of members. Of course, there is no way of knowing how much money Jagex makes off free to play so it's a bit of a one sided arguementg at the moment.

[Screech1992]

JaGeX has to get more money from membership then from advertisements. Because if they didn't, they'd better make everything f2p and put up banners. They would get alot more players (freeness attracts :D ) so more ad payment

[das1330]

if nonmembers made more money then members, then there would be no members at all and everyone would get everything

[flyboymike22]

Sniper, awesome quote in your sig...hilarious.

 

 

 

But I would disagree, its kind of like supersizing your meal, its doesnt cost the company 40cents to give you a little more drink and fries, but its what the purchaser would be willing to pay for a little extra.

[Dalcyte]

Acutally, recently Jagex made a multi-million dollar deal with the ad company. That's probably for a couple years, so lets just say thats 1 million dollars per year. (could be lots more, could be lots less, but this is approximate.)

 

 

 

 

 

 

 

Now, Aren't there 2 million members? That's 10 million per month. Maybe there are only 1 millino members, that's still only 5 million per month.

 

 

 

 

 

 

 

 

 

 

 

Ok, big woop, my numbers are very approximate and probably quite a bit off. But my point is that Jagex makes way more money from members then the f2p group. Way more.

 

 

 

 

 

 

 

850,000, you were quiiiite a bit off.

 

 

 

 

 

 

 

But yes, most of their income does come from adverts, i thought this was common knowledge. What else are you saying here... :?

[blackrazor]

I think you're both right. Sort of.

 

 

 

 

 

 

 

Runescape's main cost, per player, is bandwidth. Which is to say, the more you play, the more you cost Jagex, per month.

 

 

 

 

 

 

 

On the other hand, profit from being served banners (no clicking even necessary) is also computed based on time online. So the more time spent on a free world, watching banners, the more gross revenue for Jagex. This gross revenue, can easily come out to more than 5 dollars a month, if enough time is spent online.

 

 

 

 

 

 

 

The monthly fee for an ad free experience can either work in Jagex's favour, or not, depending on player habits. Most payers still visit the main page, news articles, and free worlds (to meet friends, pk in a cheaper wildy, clan, and merchant) ... so Jagex earns from their subs, and the banners. If a payer isn't on much, then the 5 dollar sub is pure gravy. If they're on a lot in pay worlds only, then bandwidth costs might start to eat up a lot of that gross revenue.

 

 

 

 

 

 

 

To put it all together:

 

 

 

 

 

 

 

Jagex does the worse with:

 

 

 

1) Payers that stick 100% to pay worlds and are heavy users (on a lot). Especially if they use expensive servers, like the Oceania ones. Eventually bandwidth use eats up the fixed monthly sub.

 

 

 

2) Free players that block ads or ad cookies.

 

 

 

 

 

 

 

Jagex does the best with:

 

 

 

1) Payers that stick to free worlds a lot, too. Jagex collects from both revenue streams this way.

 

 

 

2) Payers that don't play many hours, or that sub for multiple accounts (only 1 can be active at a time, if by the rules). Low bandwidth usage, fixed monthly cost. Yummy for Jagex.

 

 

 

3) Payers that get themselves banned months before their sub runs out, if paid for in advance.

 

 

 

 

 

 

 

Jagex does average with:

 

 

 

1) Free players that let the banners and cookies on their comps. Probably, ad serving revenue wins out over bandwidth, so the more hours they play, the better.

 

 

 

 

 

 

 

===

 

 

 

 

 

 

 

In any case, Jagex probably finds it nice to have two revenue streams ... both monthly subs, and banner serving. That adds to any company's resiliance if market conditions on one revenue stream takes a dive. Makes the company more survivable that way.

 

 

 

 

 

 

 

Anyways, the market doesn't always reward those consumers who contribute more. A lot is based on perception, too. For example, a VHS tape costs more to manufacture, and to copy data upon, than a DVD. But DVD movies tend to cost more in the store, because they are seen as more desirable to consumers by the management types that make these retail pricing decisions.

[Guest sword_kill11]

This has been brought up many times on the runescape forums, Jagex mods continue to say that while they will not disclose exact figures, only 5-10% of their income is from advertising ;) The rest is from p2p members.

 

 

 

 

 

 

 

Sorry I don't have a picture to back this up, but it was posted countless times on the now hidden/deleted Rule 7 Update thread a week ago in Rants.

 

 

 

 

 

 

 

However, that 5-10% still is very helpful, and helps support the game for all.

[Celt23]

Members DO NOT pay for the whole game for us F2P to enjoy, as a matter of fact, it is the other way around. We F2P'ers pay for the game for members by advertisements. Much more money is made daily or monthly from marketing than the five bucks Jagex earns from its members. Thats it, there cannot be an argument for the other side. Millions are made daily on the internet just by ad placement, not by membership. Granted, Jagex makes a pretty penny from memberships because of the size of the group, but that is nothing compared to the money the company brings in from advertising.

 

 

 

 

 

 

 

I've been using this argument against other members for a long time; it works very well. They usually respond with stupid things like "did YOU click the adds?"

 

 

 

 

 

 

 

You can't argue against it. And Jagex should use more of the ad money on F2P. They generated the money, and they deserve it.

[willysp]

If you want updates, get members. You can find 5 bucks in change around the house in less than a week. So stop whining.

 

 

 

 

 

 

 

 

 

 

 

and even if person clicks an ad, its hardley any money going towards runescape.

 

 

 

 

 

 

 

p2p people overall pay much more than just the occasional few people who end up going on a whim and clicking on any ad they see.

[Celt23]

 

 

 

and even if person clicks an ad, its hardley any money going towards runescape.

 

 

 

 

 

 

 

p2p people overall pay much more than just the occasional few people who end up going on a whim and clicking on any ad they see.

 

 

 

 

 

 

 

Compare the thousands of dollars the advertisers pay with the $5 members pay. That money keeps f2p alive and the extra should be spent on f2p updates, not p2p.

[jwrm22]

agh not another f2p vs. p2p topic!

[ddaanniiellh]

The advertisement on RS does make money, but not as much compared to what the p2p players are paying. This is different compared to newspaper companies which actually make most of their money from advertisements. However, f2p also brings in money in other ways, such as attracting people towards members bringing more money on a daily basis, thats the only reason why they occasionally update f2p.

 

 

 

But if they really wanted, I'm sure Jagex could get most of their money from advertisements, and get rid of p2p, just that they would need to have a lot more companies to sign with them for them to advertise.

 

 

 

Just a bit of thought...

 

 

 

~Ddaanniiellh

[biggy08755]

Yes ad's help. But only when you click on them. Jagex probably makes around 5m USD per month from members as not all membership options cost 5 dollars per month. So say I if you actually click the ad's. Rarely anyone does...

[Bludragon124]

I actually disagree... I think the ads bring in less than memberships.

 

 

 

 

 

 

 

 

 

 

 

There are at least 925K+ paying members... that's about 4-something million a MONTH in membership fees... I'm not sure, but I think that is more than from ads.

[blackrazor]

Actually, Danniellhh hit the nail right on the head. With the value of banner serving on a high volume site (note: banner serving NOT clicking, get that through your 3-inch thick skulls please), Jagex _could_ be making a fortune, easily more than 5 a month, per high volume user.

 

 

 

 

 

 

 

But, how much does Jagex actually make? Well, that really depends on how market savvy Jagex is at negotiating ad revenue. They might do really well, or not, depending on their own in-house advert-sales skills. But, that is really Jagex's responsibility to maximize their ad collection revenue. If they're weak in that area, and they let free servers slide, becuase they can't be bothered to more aggressively market their product, then they have only themselves to blame.

 

 

 

 

 

 

 

And, I never want to hear stupid ad-click bs garbage here again. Please. It's all about banner serving these days. Nobody expects you to click on anything. You passively watch the banner before your eyes, just like commercials on TV. That's what ad companies pay for. That's why Google is buying UTube for 1.65 BILLION dollars. High volume ad serve potential is worth big dollars. Serve ... not click. Do your research. Please.

[Torlen]

Your suggestion that Jagex makes more money from ads then paying members is laughable. You want to know where your ad money goes? Paying for those servers that you guys get to play on for free.

[Soma2035]

Acutally, recently Jagex made a multi-million dollar deal with the ad company. That's probably for a couple years, so lets just say thats 1 million dollars per year. (could be lots more, could be lots less, but this is approximate.)

 

 

 

 

 

 

 

Now, Aren't there 2 million members? That's 10 million per month. Maybe there are only 1 millino members, that's still only 5 million per month.

 

 

 

 

 

 

 

 

 

 

 

Ok, big woop, my numbers are very approximate and probably quite a bit off. But my point is that Jagex makes way more money from members then the f2p group. Way more.

 

 

 

 

 

 

 

Actually, no.

 

 

 

 

 

 

 

A multi million dollar deal is a lot more than a million dollars a year.

 

 

 

 

 

 

 

ALSO, consider the fact that each member requires about 10 times more memory space because of quests, bank space, poh.

 

 

 

 

 

 

 

Remember also, that forums are unnecessary if members did not exist. Forums are really still members only, if members didn't exist no one would post there.

 

 

 

 

 

 

 

Not to mention, extra customer service is required for members.

 

 

 

 

 

 

 

All in all, the extra money from members pays for the increase maintenance and extra website features.

 

 

 

 

 

 

 

So really, if members still deserve updates on top of that, f2p could use a little more bank space... and 2 updates a year...

 

 

 

 

 

 

 

And before you flame me, I have two member accounts.

[jaskkes]

To be honest, I wouldn''t care if I played with ads or not. Its a very small part considering the fact that you are looking at the game screen and not the ads.

 

 

 

 

 

 

 

Are the adverts actually doing there job? There is a cost for placing the ad there, and then payment for how many people actually click the link.

 

 

 

 

 

 

 

How many players ACTUALLY click the ads. I know I dont.

 

 

 

 

 

 

 

And also considering the fact that F2P has a younger population of player that can't afford/get access to membership from parents, the ads have to be there for server costs.

[bobbaldrick]

you guys are kidding yourself if you think that the ads bring in more revenue than the members.

 

 

 

 

 

 

 

members = $50 mill a year plus (4-5 mill per month)

 

 

 

 

 

 

 

ads = $2-5 mill a year at most. (200-400k per month)

 

 

 

 

 

 

 

adverts dont make much money, look at google and yahoo and amazon- these sites have the largest amount of visitors on them and they struggle to make any profit at all.

 

 

 

 

 

 

 

Banner advertisement is not expensive at all to advertise your stuff. If it was you would actually very effective and expensive you would have proper brands etc advertising this way. (anyone say coca cola)