Basic Gold Making Knowledge
1,000 gold per hour!
Seek Big Profit Margins
The key to making consistent profits is to know how big your profit margins should be. Also, by setting your profit margins you can know how much to expect in profits. If you are a crafter you can adjust your earnings this way and sometimes earn more depending on how you set your profit margins. I'll show you how in this article. The key is to get this going and have consistent profits, if you do this and work on other things on this website, you won't have to worry about gold in the near future.
Set a Profit Margin for everything you sell
Profit margins are important when you a crafter especially but it's important for anything you do whether you're a gatherer or even just buying low and selling high. By profit margins, I mean that you should have set percentage for profits in your mind when you are putting something on the auction house or buying materials.
For example, for some items I say that I have to have at least 30% profits for the item I sell. So for example if I am crafting an item that costs 1000 gold in materials, I have to be able to make 300 gold from that item after auction house fees. So in reality that profit margin is higher, probably somewhere around 35-37%.
Depends on the Item
The profit margin will depend on the item that you are crafting or selling. If it's a small item such as a blue gem that you buy for 50 gold, you might have to watch the market and see what's reasonable. Usually for lower priced items, the market is pretty stable and you can see what you will be able to sell the item for. The 50 gold item that you bought really cheap might be selling at 70 gold. So that's a 20 gold or 40% profit margin (20/50=40%).
That's awesome but you might not always be able to make so much money from that item. If you set you're realistic profit margin at say 25% then you can base your purchases on that. Everything that I say here is dependent on the fact that you know what the market price of an item is. Market prices vary and so you have to be careful but if you have a good grasp of the market price you can make consistent profits.
Seek Consistent Profits
By knowing the market price and setting a fair profit margin you can make consistent profits that will lead you to make a lot of gold. Find the items that sell well and that you can buy one way or another or can craft to make profits. You could buy items off the AH, trade channel or have farmers COD the item to you. Try all 3 and find what works for you.
If you're crafting, having a set profit margin will definitely help you make more gold. Consistency is extremely important and you have to stick to your plan. There will be times when you're item won't sell and you may have to lower your profit margins but for the most part if you keep a close eye on the market price you will do just fine.
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