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What is a typical percentage for a boardgame designer when the game is a Kickstarter?

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ausloosd
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Joined: 11/13/2009

Hello,

I have been active in the game industry for 12 years but have been mainly worked with publishers who released the game through the classic retail channels.

However, for my new project the involved publisher wants to release the game through Kickstarter. That way he will make potentially more profit by eliminating some of the middle-men from the route to publication, like shops that take a big chunck from the profit.

So by my logic (I could be wrong) a contractual percentage for a boardgame designer should at least be a little higher than a standard contract to reflect this higher profit gained by the publisher.

Any ideas on this? What is a "typical" perfecentage for a designer when the game is published through kickstarter by the publisher?
I want to get better grips with what would be fair...
I'm aware the fairness is partly subjective, but any suggestions or advice are more than welcome, as I have little or no reference at the moment.

I Will Never Gr...
I Will Never Grow Up Gaming's picture
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Joined: 04/23/2015
The same as traditionally .. basically.

I would expect to sign for a % royalty of each unit sold (based on what the publisher would normally pay out), regardless of how they wish to go about publishing/funding/marketing/distributing and I would expect that % to be exactly the same, plus a $ advance on that royalty.

If they do exclusively Kickstarter (unlikely), you would end up with, for example, 5% per unit just as you would with the traditional methods but each unit would be a higher value already.

Make sure the contract stipulates what you're getting based on both crowdfunding models AND normal distribution, because let's face it .. if they're doing KS exclusive (no future distribution) then they're shooting themselves in the foot already.

Jay103
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Joined: 01/23/2018
Also make it really clear

Also make it really clear what "net" would include, or get a chunk of the gross. Because KS.com will take some money off the top.

questccg
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Joined: 04/16/2011
Margins are very important.

You'd be amazed about how 10% KS Fee is a real "killer". I've done some analysis and basically you can "squeeze" about another 10% of profit (Gross).

So basically you are sharing with KS 50% of your profits.

Obviously it depends on your "margins". Or more accurately understanding how to approach backers to maximize your "margins". You need to understand that 1st: You can't sell at RETAIL! You need to offer a discount, 2nd: You nowadays need to give a shipping subsidy to backers. What this means is the first $X dollars are for FREE shipping in the USA. For example.

Both the KS Backer Reward Price point (1st) and the Shipping Subsidy (2nd) dig into your "margins"... They really do hurt. But that's KS today.

Do your math carefully. And offer a reasonable price for what you are KS-ing. It's easy to think KS is a fast way to easy money. It's not... There are other things that cut into your margin like FOB China shipping and logistics, warehouse & fulfillment fees... A whole slew of stuff that eat up the "money" you think you are going to make!

Also do your homework and understand the "cost structure" to making and delivering the product to backers!

Cheers...

Update: Just as a quick note, I often do KS assessment for all my game design ideas. I do things like profit sharing and stretch goals, to determine what are the real "margins" in KS-ing. And every time I go over 20% (less 10% KS fees), it seems like the funding never reach the targets.

What I mean it seems like over 20% is not possible with the "cost structure". And if you have other people you are sharing this revenue with, it becomes a small portion of another small portion.

Unless you have SIGNIFICANT "volume", you'll most likely land up in the "margins" are too slim (category).

Just some cautionary advice... what to be aware of.

ElKobold
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ausloosd wrote: However, for

ausloosd wrote:

However, for my new project the involved publisher wants to release the game through Kickstarter. That way he will make potentially more profit by eliminating some of the middle-men from the route to publication, like shops that take a big chunck from the profit.

What if it doesn't fund?

I would probably recommend to agree on a certain sum paid before the campaign as prepaid royalties.

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