Percentage of MSRP

What is the contractor doing?

Is this as well as, or instead of, an up-front payment?

That sounds pretty respectable and about what I have seen as starter royalties.

The other deal you often see is a percentage of the price the publisher actually sells at -- if they sell into distribution, this amount is usually about 40% of MSRP. The royalty on this for new designers seems to typically be about 5% (maybe 6% if you're lucky), which works out as about the same as your 2.4% of MSRP.

Congratulations!

I don't have enough experience to say with authority. It seems that there is usually some space for negotiation, but remember that if you want something extra you will usually have to give something up in return. Make sure you know what you definitely want out of a contract, and what you are willing to do without.

Also, as a newbie designer, you probably don't have a great bargaining position as there are so many of us trying to get our games published. It's unfortunate, but just the way it goes.

Good luck.

That said:

If you're designing the game, AND writing the rulebook, AND specifying the components, that seems pretty cheap to me.

If you're DESIGNING the rulebook, i.e. formatting it for publication, that seems ridiculously cheap to me. There's no way rulebook layout done professionally is worth less than $500 on its own.

Anyway, if you're doing all that, the publisher is doing.. what exactly, other than contracting an artist?

Edit: Oh, also, if the game doesn't get published in the end, even if the Contractor does all the contracted work, the Contractor gets zip. If you're the contractor, that's a problem. If you're doing that much work, I'd say you want a clause that says that if it isn't published by X date, all the rights to the work revert to you.

So what are you providing?

Are you working with several parties on different aspects of the game? Like one person "designs the game and rulebook", someone else "designs the physical prototype", someone does the "Graphic Design" and someone else may "sell and market the game" (KS or publisher)?!

I suggest LISTENING to the following podcast episode (it's very relevant):

http://nerdlikeaboss.com/022-the-one-thing-you-need-to-know-as-a-game-de...

Why? Because one of the guest mentions that the one (1) piece of advice he would give to anyone interested in board game design ... is that the first prototype is "just the beginning". From the first prototype, you will learn how BADLY BROKEN the game is ... and re-iterate with the design, in order to produce more, better and better prototypes.

I'm just worried you BOTH have little to no experience making games. At least this is what it appears from the OP and help requested.

For my current WIP (Work-In-Progress), I've had over 5 Versions of the game. Each one kind of different, improved version of the previous one. Now at Version 6 ... The game has enough "meat-on-the-bone" and is just a matter to "tweaking" some finer details.

Anyways ... I would highly recommend learning from the BEST... And listen to that podcast, even if it's only the one (1) Episode that I've linked. It might open your eyes up to the realities behind Game Design.

Cheers...

Is that the prototype of a game you have designed, or are you making a prototype of a game someone else has designed?

In other words, is this your design being signed for publication (in which case the use of the word "contractor" is a bit unusual and causing some confusion), or are you providing a service for another designer?

It's not clear about the "relationship": who is the "contractor", you or the Game Designer. Or like I said are you in some kind of "partnership"?! It's really not obvious the way you have presented it to us...

To license the game from you 2.4% MSRP is a bit low. Should be closer to 3% MSRP... You should really READ this page from James' Mathe website:

http://www.jamesmathe.com/alien-first-contract/

No problem... You did a great job in clarifying. Read it and figure out what YOU want to do... Maybe negotiate a bit HIGH ... like 3.5% and then meet somewhere in between... IDK. Say something like: "You realize that this is the first time you have dealt with this publisher ... but you have playtested the game extensively with many play groups..."

Otherwise you may get 2.7% (in between). I don't know how this publisher operates. If you tell them you want 3% no BS... Maybe they'll accept.

It's up to you to figure out what YOU feel your game is WORTH.

Cheers!

But definitely have a clause in the contract where the rights revert to you if they don't, for example, pay at least $1000 (or any equivalent, like "print 500 copies"). Otherwise they have everything and you have nothing, and your game could vanish into the wind.

What you need is a "Sunset clause". Something which says that after "X" years of no income earned with your game, any and all rights to the game revert back to you.

And you are NOT a contractor. You are the game's designer. The type of a contract that you should be getting is a "licensing agreement". You agree to license the IP (that is the game - rules, prototype, etc.) to the publisher in order for them to manufacture, market and sell the game.

Again you need a "Sunset clause" (as mentioned above). And you should have a respectful licensing rate. Like I said 3% MSRP. Your contract should also FIX the MSRP so that it is not "fudged" around during your agreement. So you can say $45 MSRP and you get 3% = $1.35 EACH GAME SOLD.

You can also determine if the Publisher wants to include you in the "development" phase of the game. This is when the Publisher agrees to license your game and begin to playtest and "refine" the game... Should it be necessary. I'm not so sure how to put this in legal terms...

Because when a publisher agrees to license a game from a Designer, he will work with HIS OWN "Developer" to refine and "streamline" the game such that they can market and sell it...

You would just want to be included in that process (if possible)...

I did not know the legal term for it and yes, I double checked the legalese behind "the right of first refusal" to work as the designer. Note that they could state that the game is going to be in a "development" phase as opposed to a "design" phase... But basically, you should continue as the designer to work with the Publisher's team to bring the game to the 90% completion rate and then when the Publisher is satisfied, they can move on to making, marketing and selling the game.

I would ensure that I would still have some "skin-in-the-game". In a way it is very positive since it means that you want to be involved and sometimes they may need your help in getting around hurdles or obstacles in the "development" phase.

In any event, hope your negotiations do well and that you get a reasonable agreement satisfactory to all parties.

Cheers!