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Transmogrification arrived in World of Warcraft in Patch 4.3.
Mogging, as we call it, allows a player to change their weapon and armor appearance to match an uncommon, rare or epic item from their inventory. With transmogrification you can wear the latest tier armor gear, but mog it to look like tier 1, tier 5, or any of your old armor pieces.
Some smart gold makers took up the challenge to supply these mogging items at profitable, often vastly inflated prices. A green item worth 20s yesterday could today be a rare visual, and therefore worth 2,000g. Other gold makers dismissed the opportunity as a passing fad, a temporary fascination or just too complicated to learn and use.
Months on, and its now clear that mogging as a gold making method is here to stay.
The Mogfather banned
The mogfather, aka Keelhaul from Disenchanting Azeroth blog, was featured in an article by PC Gamer magazine and Joystiq. He’s become famous not just for making gold but for giving it all away. Since patch 4.3 he’s now made and given away over 2 million gold to wow players. He’s been banned 4 times because confused Blizzard GMs couldn’t imagine a plyer voluntarily giving gold to other players and thought he was a gold seller. But to the Mogather the compensation he received was the sheer fun of making so much gold in the AH and the delight of seeing his mogging items transforming mundane armor. A very visual game from the start, mogging creates a more beautiful world of warcraft.
Mogging creates a more beautiful World of Warcraft.
On the opposite site of mogging gold making, excited goblins and auctioneers were inspired by his story. Copying his mogging snatch list and similar shopping lists, they tried to duplicate his selling prices. Many simply failed. Their home server had different levels of awareness and interest in buying armor for transmogrification. Mogging prices and sales volume vary according to demand. The other obvioius factor in sales is supply. Large busy economies offer more choice for buyers, more opportunities for buyers and competitors to catch desirable mogging armor and weapons at cheap prices. When items are slow to sell, a single mogging seller can repost at a good steadily high price, whilst many different competitors will excitedly undercut each other and drive down sales prices. 

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