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Re: ROBLOX's financial state - Where they stand on meeting their budget

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HanSolo996 is not online. HanSolo996
Top 25 Poster
Joined: 26 Feb 2008
Total Posts: 52696
31 Dec 2010 01:09 AM
Reading through these posts about ROBLOX and it's corporate standings, I saw one post talking about yearly salaries. It read "Bill Gates might make 5k a month." and continued to say that ROBLOX's staff probably makes costs the company a few hundred thousand dollars a year. If you think that, you are really messed up on numbers. $60,000 a year is NOT a whole lot. It's probably the average wage for higher-income middle class families. $100,000 a year isn't that much. $250,000 a year is getting a little high, but there are hundreds of thousands of people that make that much money.
Working in Silicon Valley gives developers and coders a VERY good chance at a high-paying job. (Think $100k or more annually). I can guarantee you the ROBLOX staff doesn't work there for minimum wage because it's a fun hobby. They do it for the money, just like any job. Because developers get payed so much in that area, ROBLOX has to put a big price tag on jobs if they want to keep anyone for any amount of time.

Now, there's close to 40 mods and admins currently working for ROBLOX (Not counting interns.). Let's calculate the salary costs:
15-20 Devs = 1.5 - 2 million annually
5-10 Offce workers/PR people/Customer Service = 150k - 300k annually
5-10 Mods = 100k - 200k annually
Put all those prices together, and you jaw a yearly SALARY cost of over 2.5 million per year. And that's just the salary. There's probably another few million in expenses for other things required to own/run a company like this (Building cost, insurance etc.), so ROBLOX could be paying up to 5 or 6 million yearly. That's no easy amount to come by.

Let's take a look at some numbers for memberships:
During the 6 days in which the O/T/BC Gifts were on sale, these amounts sold;
-OBC Gift = 5,366 = ~$107k a month income
-TBC Gift = 12,404 = ~$148k a month income
-BC Gift = 30,105 = ~180k a month income
Looks good, right? Well, because the higher levels of membership probably bought 2/3 Gifts (depending on level - OBC bought 3; TBC, 2), we subtract the OBC sales from TBC sales, and TBC sales from BC sales. We end up with:
-OBC Gift = 5,366 = ~$107k a month income
-TBC Gift = 7,038 = ~$84k a month income
-BC Gift = 17,701 = ~$106k a month income
Added together, that adds up to just under 300k a month, or 3.6 million annually. That means they're still 1.5 million short of their annual budget. Hopefully, they can gain that from advertisements, but it's still a close run. They have to try to sell every membership they can to meet their needs.

What am I really trying to say here? ROBLOX isn't rolling in money like you may presume. In this economy, they're struggling just as much as anyone else to stay financially stable. The majority of the ROBLOX site remains free, but the users who pay should and will receive benefits for what they do.

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80999 is not online. 80999
Joined: 23 Dec 2009
Total Posts: 104
31 Dec 2010 01:11 AM
Sources give them to me
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HanSolo996 is not online. HanSolo996
Top 25 Poster
Joined: 26 Feb 2008
Total Posts: 52696
31 Dec 2010 01:12 AM
If you're not going to participate in some way related to this thread, please don't post here.
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80999 is not online. 80999
Joined: 23 Dec 2009
Total Posts: 104
31 Dec 2010 01:13 AM
I asked for sources, i have sources that say different numbers, now give me your sources.
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BristleTheKitty is not online. BristleTheKitty
Joined: 12 Dec 2010
Total Posts: 2784
31 Dec 2010 01:14 AM
Uh... middle class is 40,000 and up.
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PR0BLOX is not online. PR0BLOX
Joined: 17 Oct 2009
Total Posts: 574
31 Dec 2010 01:16 AM
All these numbers are assumptions.
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Kuroki is not online. Kuroki
Joined: 27 Dec 2009
Total Posts: 18058
31 Dec 2010 01:18 AM
Let's also realize that not everybody buys the monthly membership. There is some who have bought lifeitmes, six months, tweleve months, bought ROBUX, etc.
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HanSolo996 is not online. HanSolo996
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Joined: 26 Feb 2008
Total Posts: 52696
31 Dec 2010 01:22 AM
@Bristol I said higher-income middle class.
@Problox Not entirely. They're close estimates gleaned from what I've read and seen about other corporations and their funds.
@Kuroki I figured that into the numbers somewhat.
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CounterClockWork is not online. CounterClockWork
Joined: 01 Dec 2007
Total Posts: 12538
31 Dec 2010 01:25 AM
"Added together, that adds up to just under 300k a month, or 3.6 million annually. That means they're still 1.5 million short of their annual budget. Hopefully, they can gain that from advertisements, but it's still a close run."

According to Telamon on Twitter and stated many times they use Google Adsense, and from my own experience in that, though I've obviously never had it on a website with 13 million users. 1.5 million dollars in ad money sounds outrageous to be honest. Its possible, though I'm a bit doubting of it.
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HanSolo996 is not online. HanSolo996
Top 25 Poster
Joined: 26 Feb 2008
Total Posts: 52696
31 Dec 2010 01:27 AM
@CCW I'm aware it seems outrageous, I meant to imply that it leaves a 1.5 million gap for advertising to fill. I left one thing out, though - Currency purchase. So let's just say ROBLOX gets 1 million annually from currency purchase and 500k annually from advertising.

Good to see you, btw.
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CounterClockWork is not online. CounterClockWork
Joined: 01 Dec 2007
Total Posts: 12538
31 Dec 2010 01:30 AM
No, it just seems outrageous if they were to make 1.5 million from ad money. That number sounds, as said, rediculous to aquire in ads.

How much time would they have to make that much money? This going by yearly, right?
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HanSolo996 is not online. HanSolo996
Top 25 Poster
Joined: 26 Feb 2008
Total Posts: 52696
31 Dec 2010 01:32 AM
Think we're misunderstanding each other.
In my big post, I meant to say that the 3.6 million already accounted for left 1.5 million to be provide via ad income. Didn't mean to say that ads provide that much. I agree - that DOES sound outrageous

Yes, this is yearly.
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paul2448 is not online. paul2448
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Joined: 18 Aug 2008
Total Posts: 30685
31 Dec 2010 01:33 AM
@Counter

A 30 second Superbowl ad costs $1,000,000.


That also seems pretty outragious to me...
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Legoman717 is not online. Legoman717
Joined: 01 Jul 2008
Total Posts: 757
31 Dec 2010 01:34 AM
@Hansolo996

Finally, a thread that isn't insulting the admins and people who buy BC.
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GeneralTrumbo is not online. GeneralTrumbo
Joined: 23 May 2008
Total Posts: 5200
31 Dec 2010 01:34 AM
This is so true. I looked up how much that area pays, it pays a lot. It truly is 100,000 a year for each admin. And there are 52 admins, not 40 by the way. Telamon said on twitter. That just rakes another million something dollars. They are barely scraping the ice is how it seems.
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wagnerja is not online. wagnerja
Joined: 30 May 2008
Total Posts: 4653
31 Dec 2010 01:35 AM
It's a big assumption. It's probably WAY off.
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R96069 is not online. R96069
Joined: 03 Sep 2008
Total Posts: 12144
31 Dec 2010 01:37 AM
paul won this thead.
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GeneralTrumbo is not online. GeneralTrumbo
Joined: 23 May 2008
Total Posts: 5200
31 Dec 2010 01:37 AM
@paul TV commercials obviously pay LOTS more than GoogleAds. Don't use that as an argument unless you want to be portrayed as stupid. And lets be honest, who even clicks ads? I am sure 95% of ROBLOX don't.
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wagnerja is not online. wagnerja
Joined: 30 May 2008
Total Posts: 4653
31 Dec 2010 01:38 AM
Oh and you left out server space, website space, and paying to put ads up.
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CounterClockWork is not online. CounterClockWork
Joined: 01 Dec 2007
Total Posts: 12538
31 Dec 2010 01:38 AM
No, we're understanding eachother. You're misunderstanding my understanding. That still is how I feel about that.
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GeneralTrumbo is not online. GeneralTrumbo
Joined: 23 May 2008
Total Posts: 5200
31 Dec 2010 01:38 AM
@R96 No, actually he lost terribly.
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GeneralTrumbo is not online. GeneralTrumbo
Joined: 23 May 2008
Total Posts: 5200
31 Dec 2010 01:42 AM
Just my assumptions, but I am sure they make maybe $4,000 a month, if that in ads. I wonder how they manage the rest...
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CounterClockWork is not online. CounterClockWork
Joined: 01 Dec 2007
Total Posts: 12538
31 Dec 2010 01:44 AM
@General

In one day, thousands upon thousands click it. I can assume this under my own personal experience in using Google Ads for a paid domain. The ad money for each click as well can very from 10 cents to 10 dollars, all varrying on whatever company ad was clicked and how much they paid to advertise, etc.

The amount of impressions isn't important, it brings in VERY little money. Clicks are where its all about. Users may not click the ads, though many do. Do understand that ads for this website? Terrific, though ROBLOX may not purposely want to influence it that way.

Being that this website is majoritingly populated by children, the odds increase that an ad will catch their interest and they'll click it over teenagers or even adults new to the internet. We're obviously not interested, nor do we care about 99% of anything being advertised so we just ignore them basically entirely. Though children are newbs to the internet generally and tend to click them out of curiousity and awe.

Though in response to me saying it sounded outrageous and rediculous, its very well possible that in a years time that a website with 13 million users could have earned 1.5 million dollars off the ads. Though what I'm curious about is that if they catch their loss in the act, notice the average ratio not being enough at the end of the year to keep things going. Do they release a BC update, or something new to get more money like the recent BC update?
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CounterClockWork is not online. CounterClockWork
Joined: 01 Dec 2007
Total Posts: 12538
31 Dec 2010 01:45 AM
I just saw paul's post.

That's irrelevant. Has nothing to do with this. I'm not saying it sounds outrageous in disbelief, I'm saying it as in it sounds unlikely and I have my doubts.
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RobloxSK8 is not online. RobloxSK8
Joined: 11 Feb 2010
Total Posts: 199
31 Dec 2010 01:49 AM
Then put in the Robux purchases and count the BC members who didn't buy the gift but whose subscription is still recurring the charge.
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