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Thursday, August 25, 2011

Guest Post: Beware The Crossfaction Gotcha!

Beware the Crossfaction Gotcha!

Today we present you a guest post from Laraku of Skywall - Horde with a quick Cross Faction (Arbitrage) lesson.



While mining The Undermine Journal I came across a wonderful sight!
Truegold Alliance 797g
Truegold Horde 640g
'Instant Profit' I thought.

So buy Horde 10x640, noticing everyone is posting singles : 6400g cost.
Transfer via Neutral AH (cost 10s)
Peruse Alliance AH, hmm everyone is posting one and two units. 787-799g
So I post a 10 stack at 800g each.
The thinking is, if they need a bunch they will pay for the 10 stack rather than buy 10 singles just because its easier.
1 hour later, sold!

So profit calculation is:

10 sold at 800 = 8000
subtract the auction house percentage 5%:  8000 * .95 = 7600g 
subtract my orginal purchase price and I get
7600 - 6400 = 1200g profit (pats self on back)
 
If I leave it on the Alliance side, that's it pure profit.

But if I try to move the gold back to the Horde side?

Neutral AH percentage is 15%

So if I post any item with a price of 7600g and buy it on my Horde side.
7600 * 0.85 = 6460g erk, wait a minute, that cannot be right, furiously reworks math.

Sigh, yes trying get the gold back over to Horde will turn a 1200g profit into a 40g profit.
Now thats what I call a gold sink!
Obviously it would be much better to find a different deal on another item that works in the favor of the Horde side.

Back to Undermine for me!


************

Thanks Laraku for the guest post.  One thing I would recommend instead of transferring the gold back over to your main side is to just re-invest it on the Alliance side or buy a faction specific item like the Enchanter crafted lamps and lanterns to transfer to the opposing sides.  Another tip is to use a 2nd account as it makes cross faction exchanges much faster, easier, and safer and it is one of the best things you can do if you have a free WoW veteran account code.

Be sure to check out another guest post from Laraku over at Goldgrubs.com: Money Making 101 - 6 Easy Lessons For WoW Gold.


Enjoy The Posts Here at Cold's Gold Factory? Check Out Cold's Mysterious Fortune Card Mastery Gold Making Guide To Get You Started. This Guide Can Be Applied To Multiple Markets Not Just Barking MFCs.  Also Check Out TGQ's Latest Mini-guide, The Teenage's Gold Guide. Goes perfect when paired with a MFC guide or any other WoW Gold Guides.

2 comments:

  1. Free wow account allows you to use the auction house?

    ReplyDelete
  2. @Harold

    Not the free wow trial accounts, but the Free Full Account granted to Veteran Subscribers is a real full access 2nd account.

    ReplyDelete

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