World of Warcraft: The Economics of Primary Professions

Each character in World of Warcraft is allowed to select two primary professions which fall into two categories: raw material acquisition and crafting. Raw material acquisition professions include: mining, skinning, and herb gathering. Crafting professions include: blacksmithing, leathercrafting, tailoring, and alchemy. Although it is not required, it makes sense to have an acquisition profession that matches your crafting profession. For example, if you are going to be a blacksmith, it makes sense to be a miner as well since mining will provide the raw materials for blacksmithing. If you are going to be a leathercrafter, you should also be a skinner. And so on.

Professions are, in some ways, a distraction from the game. Time you spend acquiring materials and crafting items is time that you do not spend leveling. However, there are several, non trivial benefits to having and developing your professions. First, you can make items that may be of value to you. For example, if you are a leather crafter you can make armor enhancers that will increase the armor ratings of your clothing items.

Second, you can make items for your other characters. Your tailor, for example, can make bags for everyone and email the bags to the other characters. Everybody needs bags in which to store the loot they pick up while leveling. And bags are expensive. So having a tailor allows you to make bags for a fraction of the cost. Your leather crafter can make armor enhancers and email them around. If you belong to a guild, or just have friends on the same server, you can make items for them and give them away via email or trade them for items that you need.

This is all very handy. It helps enhance the quality of your character and your social connections. But, there is another aspect of professions that becomes increasingly more important over time. And that is the fact that you can sell the items that you make at the Auction House and earn money. Following is a simple example.

Let's say that your character is a skinner and tailor. If you acquire some heavy leather and silk you can make ten slot silk bags. You can sell these bags back to vendors for 20 silver coins. The problem is that the materials cost 21 silver coins. So you really sell them at a loss. But, if you buy the same bag from a vendor it will cost you 1 gold and 80 silvers (or 180 silver coins). On the other hand, if you give these bags to your other character you will save money.

However, there is another alternative. You can also take the bags to the Auction House. The minimum bid for a 10 slot silk bag is 30 silver coins. So, if you put the bag on auction, you will make 50% more than what the vendor will give you. However, as most people will need bags and 30 silver is a much better deal than 180 silver, they tend to sell quickly. So, you can put a buyout price of 40 silver which is twice what the vendor will give you and be reasonably assured of selling the item within 24 hours. If you want to be more bold, you can raise the buyout price. If people want the bag bad enough and have enough extra gold, they will pay it making your increase several hundred percent.

Since everyone accumulates silk and skinners get the leather for free, being able to make bags and sell them at the Auction House increases the money you earn and that money can be used to buy other things that you need. As you can see from this example, World of Warcraft has its own in-world economy and just like a real world economy you work to earn money and then use that money to buy other things that you need.