From Rags To Riches #2.5 - Feasibility

As promised, this post is going to crunch some numbers and look at some of the goals I will need to accomplish in order to convert Rags 2 Riches from an Alpha clone to Omega.

The end goal of this project is to have an Alpha clone generate enough profit for it to consistently pay for Omega clone upgrades via PLEX in a self-sufficient manner. At the time of this writing, a single PLEX is worth about 3M ISK, and 500 PLEX are required to convert to an Omega clone for thirty days; therefore, we have a monthly "bill" of 1.5B ISK that we need to become wealthy enough to pay. Realistically, we need to generate a little bit more than 1.5B in profit, especially the first time the character gets converted from Alpha to Omega. I estimate that I will need roughly 250-500M ISK extra for the first month in order to continue trading and generating revenue for the next 1.5B monthly bill. Therefore, I need to find a way to generate roughly 2B ISK of profit in a month.

Because I am unable to train the Accounting or Broker Relations skills, I have a permanent 5.5% tax that I must pay, which hurts my profit margins a decent amount. I plan on building this tax into my cost calculations when determining items to trade (meaning, my profit margins will truly reflect how much profit I receive). Let's assume that the majority of my trades have a 10% profit margin. This means that on a monthly basis, I need to move at least 20B ISK worth of goods through my character in order to produce 2B in profit.

When we consider that my character only has 17 market orders to work with, this is an especially tall feat. Each market order slot needs to produce 117,647,058.82 ISK of profit each month in order to reach my goal, which results in 3,921,568.62 ISK of profit a day. That doesn't sound so bad at first, but when you consider that those numbers are profit, not revenue, the challenge is clearer; each slot must move 1,176,470,588.23 ISK a month, resulting in 39,215,686.27 ISK per day.

Clearly, this is no simple task.

Seeing that type of volume per market order isn't impossibly by any means - however, it does require either a large amount of capital, a high demand with very little supply, a high profit margin, or a combination of all three. The vast majority of market opportunities that arise due to high demand with very little supply are short-lived, and items with long-term high profit margins between major trade hubs are usually red herrings, as the amount of volume moved is dreadfully low. As an alpha clone as well as a normal human being with a 9-5 job, a family, etc. I do not have the means to take advantage of short-lived market opportunities, since they normally require moving high volumes of expensive items very quickly. Therefore, the only way I'm going to be able to attain my goal is through building up a large amount of money, investing as much as I can into trading and keeping as little of my ISK liquidated as possible.

With all of that being said, I think my plan going forward is to build my wealth up to about 25-50M ISK in Dodixie, then re-evaluate my choice of trading hub. Dodixie is the fourth-largest trade hub in New Eden, but it might not move enough volume on a daily basis for me to obtain the amount of money that I need. Amarr or Jita might serve my needs a bit better, but each has its own problems: Jita is an incredibly competitive market, and I already have a character actively station trading in Amarr that I don't want to tread on. Perhaps there's a pocket of highsec that has a budding market hub I would take advantage? Or maybe I'll join an alpha-friendly nullsec corporation and seed their market hub?

I plan on providing another wealth update in the next few days - stay tuned! With any luck, I'll have a few million or ten million ISK to my name.