Brad asked:
"I was wondering if the commercial publishers would be
interested in discussing the costs surrounding their
publication efforts, and the stages they went through
when developing a new product for publication?"
Our arrangement with White Wolf publishing through
Sword and Sorcery Studios is rather unique, but I'd
love to talk about how we (Necromancer Games) got
started.
My comments are directed at potential d20 producers
hoping to sell a significant amount of product,
meaning more than a few 100 copies. If you are ok with
limited sales or having only regional distrobution,
then you dont have to worry about alot of the costs
and headaches I will describe. Early on, however,
Necromancer's goal was to have porduct on the shelf
next to the WotC stuff. So if that is your goal, I
hope these comments help.
Before I begin, aside from my comments, you will
definately want to check out The Wizard's Attic. The
guys there, Eric, Dustin, etc, are the best. The are a
huge resource for small game publishers. I mention
them numerous times below.
There are a number of things we (Necromancer Games)
learned that you might want to consider if you want to
publish and have significant sales.
1. Content. You have to have manuscripts. So before
you get lost in the business junk, start cranking on
some content. As a start up game company, creating
content is cheap. All it cost us was our free time at
night after our day jobs, limited us to about 4 hours
of sleep a night (max) and pissed off our wives and
girlfriends. But it didnt cost MONEY. And that is
important to a start up since everything else does
cost money. And you are going to have to save that for
art and printing (see below). So before you worry
about incorporating, etc, get cranking on product.
Remember, you cant get sued until you actually make
something. So dont let incorporation concerns (or
other business concerns) prevent you from starting up.
It sure was my experience that doing it is well over
half the battle. There are lots of people who talk
about writing something. Very few actually do it. Once
you have, you are on your way. Until you have, you are
just talking about it. There is no replacement for the
sheer work of writing the product.
2. The myth of "converting old content." Lots of
people (us included) though "no problem. we have been
DMing for years and have tons of adventures. we could
put out stuff in no time." WRONG. While it is great
you have ideas and stuff written, and that is
certainly and advantage, believe me that there is a
HUGE difference between the notes you keep for
yourself to run an adventure and the amount of content
and detail required for a commercial product. And I am
real anal about having prepared, written materials for
my adventures. And it still took a long time and a lot
of rewriting. And as a lawyer I do a fair bit of
writing as part of my job. And it still took a long
time. I'm not saying you cant convert old content. You
can. Just dont think it will only take a week or two
to be a finished manuscript. Unless you are unemployed
and dont have any other demands on your time.
Even then, writing is only a small part of the
production chain. We learned this once we teamed up
with WW. For example, when Bill and I created the
Wizard's Amulet, that was basiclly us writing it
(which was created from scratch as a download, it
wasnt old material). Once done, I dropped it into a
desktop publisher, inserted the art from our artist
(see below) and exported it to Acrobat. Voilla! A file
ready to put on our site. The publishing process
included only Bill, me and our artist (and a couple
frantic phone calls to my web guy, CJ). Not much of a
"publication process." Now, with WW, there is a
detailed schedule for when art notes go to the art
director, when our manuscript goes to a final editor,
then back to us for reviews, then to the layout guy,
all the while the art director and I are working on
contracting for the art and having the maps done, then
that goes to the layout guy, while another guy is
doing the color cover art, then the layout guy lays it
out and pdfs it to us, we review and make changes,
then back to the layout guy, then to the printer, all
the while we are writing ad copy for products that are
going to be released 6 months from now so they can be
advertised and writing product plans and production
schedules for products that wont hit the shelves until
January 2002! All that is a little different than me
an my pal Bill writing some stuff and making a pdf of
it on a web site. We were lucky, we have total
creative control for Necromancer products in our deal
with SSS/WW publishing. If we dont like it, it doesnt
happen. We dont work for WW/SSS, they simply publish
our stuff. If you do team up with another company, try
to keep that control. But what I am trying to
illustrate is that what previously might have taken a
few weeks will take longer if you team up with another
company. However, undoubtedly the product will be
better for the collaboration. I know Crucible is. Even
though it is just now back from the printer, it is a
better product than if Bill and I had done it
ourselves.
3. Have a plan. This is most critical. Plan several
products, set product release dates and internal
shcedules for yourself. That will help you keep things
moving. Another aspect of the "plan" is to find a
focus for your company. What need are you addressing?
Are your product and business decisions geared towards
that focused goal? For example, Necromancer Games has
a slogan "3rd edition rules, 1st edition feel." We
focus on old-style modules. That focus helps our
strategic planning and creates a consumer
identification. People know what they can expect from
Necromancer. Why did we pick that? Well, first of all,
Bill and I are 1st edition guys. Nothing in our minds
beats the Tomb of Horrors or the Giants/Drow of the
good Judges Guild stuff (Custalcon/Thracia/Treasure
Vaults of Lindoran, etc). So it was the most fun for
us to do stuff reminiscent of that stuff. Plus, we
figured there were others like us who would appreciate
and possibly buy that stuff. Hey, if retro appeal
works for other products, we figured why not for D&D
products. You should try to do the same.
4. Web site. We felt this was a crucial part of our
plan. Having a web presence is important to reach
customers. But hosting a site with huge downloads can
cost big bucks. And this is going to be one of your
first real costs if you choose to go this route. In
the beginning, Necromancer paid to be hosted (we dont
anymore, luckily). And when we offered our free
download way more people downloaded the Wizard's
Amulet than we ever thought. On one hand, that was
great. It showed us there was huge potential demand
for our products. On the other hand, it busted our
download limit by a HUGE margin and we got slammed by
big bills from our provider. So if your business plan
entials use of the web and providing free material,
you need to plan for the cost of downloads and look at
the limits of your provider very carefully. And there
is more than just hosting. You have to register your
name with Internic (which has a fee) and then pay for
your hosting up front (generally) which is another
fee. Dont just take the cheapest hosting plan unless
you can upgrade if you are planning on downloads.
Believe me, people will hit free downloads like you
wouldnt believe.
Here is why the web is great--it is your business
card. Artists agreed to work with us and people wanted
to deal with us as a result of the web site. You can
say "go check out the site." That was a huge help.
When we were talking with people about possible
distribution we could refer them to the site. I can
say that more than one company agreed to do business
with us because they saw the site and there was
content on the site and that showed them that we were
serious. The people you are going to be dealing with
are business people. Even though most are still cool
gamers, they are in business to make money not to just
"be cool" and agree to buy your stuff sight unseen. So
use a web site to your advantage. And heck, our site
isnt even that cool. If you want to see a cool site go
check out Firey Dragon. Now that is a cool site.
4. Art. Another big, big cost. Unless one of your
partners is an artist, you will probably have to find
an outside guy to do your stuff. We got real lucks and
through a friend of a friend of an artists friend we
found John Masse. He was real cool about working with
a start up company. He knew he wasnt going to see
money too quick. We got him to agree (at first) to
take money from our proceeds. A gamble for us because
that meant he might be the only one to make money on
Necromancer products. That isnt a problem now, but it
was when we first started. Try to find a guy who will
take the same risk. d20 is uncharted territory. But
art is, probably second to printing, your second
largest cost. But you just have to have it. Look at
Death in Freeport. That is an old (probably cast-off
or unused) Brom piece. I think it is dated 1995 down
in the left corner. BUT WHO CARES! It is friggin
great. It is instantly recognizable and it is an
eye-catcher. That product (aside from being good on
its own merits) really grabs the consumer. You want to
do the same thing. And that is a big cost--big full
color cover piece.
5. Printing. Ugh. The single biggest cost (generally).
You want to print enough so your distributor has
enough product to get to retailers but you dont want
to overprint. When we were with Wizard's Attic, our
plan was to print 3000 units of Crucible of Freya, our
first module. This would allow good initial sales (we
thought) yet not be an overprint. We were hoping to
keep our per unit print cost to about &1 per unit.
But, if you are printing 3000 units that is still
$3000! That is an investment for a small company.
In addition to cost, you have to learn a whole new
lingo, like "10 pt. c1s, and full bleed and 4 over 1
process," which takes some time. Plus, you have to
"bid" out your product, meaning you have to send
descriptions of your print job to various bidders to
get the best price for your job. That is a papaerwork
headache but well worth it. We found bids ranging from
$2500 for 3000 units to $5000 for 3000 units. You
should bid at least 10 different printers (unless you
have an inside connection). You should try to shoot
for $3000 for 3000 units. Print more and it will be a
little less per unit and print less (say, 2000 units)
and it will be a little more per unit.
Just to let you know, we initially bid Crucible as 32
pages, saddle stitched, 1 color interior, 10 point c1s
("color one side") cover, with 4 color cover and no
interior cover content (called "4 over 0"). We were
set to take a bid at $2600 for 3000 units. Then we did
the deal with WW so that changed everything. beleive
me, the deal an established company gets with a
printer is WAAAAAAAY better than we were going to get
as a new company.
But as a projection, you should be able to find a
print company to do a 32 page module with a full color
cover for about $3000 for 3000 copies.
6. Decision about scope of sales/ISBNs. You need to
decide where you are going to sell your product. Just
game stores? Then you need a product number. That is
free. Coordinate with your distributors on this. But
if you want to get into the bookd trade--ie, any of
the big bookstores or major retailers--you have to
have what is called an ISBN number for your product.
ISBN numbers provide the numbers that are made (at
extra cost) into the cool bar code on the backs of
books. The book trade requires them. Now the whole
ISBN number process is a huge racket. Screw d20, I
wish I had figured this racket out. And so will you
once you get raped by R.R.Bowker. That is the company
that handles ISBN registration in the US. Go to their
web site and fill out the application. You see, you
have to get numbers assigned to you as a new
publisher. Then you register them with this R.R.
Bowker outfit (friggin racket!). Here is the kicker:
It cost $255 to get 10 (only 10!) ISBN numbers
assigned to you. And you cant order a batch of less
than 10. You would think you would get a cool log book
and something real official and neat for your 255
greenbacks. Wrong. You get a friggin dot matrix long
sheet of paper (remember those old things) with some
cheesy stickers. It is a joke. Did I mention it was a
racket? Anyway, this is just another of the many up
front costs you have to eat before you can even earn a
dime. And we got screwed on this. Necromancer shelled
out the 255 clams for the ISBN numbers before we did
the deal with WW. The we used the WW numbers. Which
means we spent the 255 for nothing. That sucked.
7. Licensure. Another possible up front cost. You need
to check with your local city, county and state
requrirments to see if being a game company (normally
treated as a "publisher") requires you to get a
business license, which is normally required even if
you only work on your own computer in your own home.
Of course, there is a filing fee associated with that.
Plus a filing for a fictitius business name. Plus you
probably have to get a home business waiver where you
promise that you dont have employees or machinery in
your home and that you are complying with appropriate
zoning regs. That usually has a fee too. Plus, you may
have to get a tax identifier number and pay quarterly
taxes on your business. This is all city and state
dependent. The best way to find out (aside from asking
a friend you know who has a small business in your
area) is to search on the web for "business license"
along with your city, state or county name. That
should take you to the page of the appropriate
licenising agency. Any contract you sign with any
retailer or distributor will require you to swear your
are properly licensed to conduct business. So dont
blow this off.
8. Distribution methods. Are you going to go
traditional print media? Electronic? You have to think
about this. Electronic seems cheaper up front. No
print costs. But you really (in our view) limit
yourself. The game media is still predominantly a
print media. I, personally, want the printed product
in my hand. That may just be my bias. But the numbers,
I suspect, will show way more print product moves than
electronic product. I know that Kyle of Fiend Games is
thinking of doing electronic media exclusively. You
may want to go to his site and contact him about that
to see how that is working. The higher profile
products (and undoubtedly the more profitible
products) are the ones using traditional print
media--the Creature Collcetion (easily the biggest
selling d20 product so far), 3dtK and DiF (the first
d20 products available for sale), NeMoren's Vault
(which i think is a great adventure), etc. The
preorder numbers we have on Crucible and Rappan Athuk
are awesome too. We havent really seen any significant
electronic releases, to my knowledge. Maybe they will
have huge distribution numbers. But I doubt it. So
what does that mean? If you want to make some money,
you have to suck it up and have your stuff printed.
And dont cut costs. Color cover on nice thick glossy
stock (10 point minimum) is a must in my view.
9. Distributors/advertising. I list this near the end
but it is really something you have to think about
early on. It doesnt do you much good to have a
business plan focused on making a product with no
viable way of moving it. Sure, it is possible to go to
the local hobby store and sell a few and hope for word
of mouth to help you grow. Heck, it worked for Bob
Bledsaw (of Judges Guild) way back when. But why do
that when you can talk to the Wizard's Attic guys. Get
ahold of them early on. When we started up, I called
the big game distributors like Wargames West, etc.
This was before anyone hardly knew what d20 was going
to be. They were real reluctant to deal with small
startups directly. They have to worry about stocking
you stuff for a time, having it not move, etc. Your
best bet is Wizard's Attic. Had it not been for our
deal with WW I would still be using Wizard's Attic to
do our distribution. Dont wait till the last minute to
get this done. You want your product in the magazines
for the various distributors and retailers ASAP.
Wizard's Attic will handle all of this for you.
Believe me, it is hard as a small company to write
product, get artists, and all the other business crap.
They can help hook you up with the distributors that
leads to advertising.
10. Second products/second print runs. Once again,
more money. The small game company is frequently in
the situation of having to reprint a product due to
high sales of the initial batch or wanting to put out
a second product before the money from the first sales
has come back. This is real frustrating. Our plan, for
example, was to launch Rappan Athuk right after
Crucible of Freya. But the problem was that we only
had enough capital to print Crucible. We were looking
at having to delay the printing of RA until after we
got money from Crucible, which of course requires
Crucible to make money, which at the time was a risky
proposition. No it appears that our guesses that d20
is commercially viable appears to be correct. Same
problem with second print runs and restocking. Lets
say you make a module and print 3000 copies in the
first run and then pretty quick you need 3000 more
because of demand. Now you have to have money to pay
for the second run of your first product and for the
first run of your second product--probably all before
you are realizing money from your first product. Whew!
11. Numbers and projections. We originally hoped to
sell 3000 units over 6 months of Crucible of Freya
(with the same projected numbers for other products)
when we were using Wizard's Attic. Now, I think those
numbers are low. Now that we are with WW/SSS, we did
an initial print run of 10,000 and I can tell you on
preorders alone those should be gone in a month with
no problem. If I were still with Wizard's Attic, and
had the money, I would do a 5000 initial print run.
Talk about this with your distributors and partners,
but right now d20 stuff is hot and I really think you
can sell through that amount of product in 6 months.
Plus, if you can afford to print 5000 units, your per
unit cost is less and you wont have to do a reprint as
quickly. But it ups your print expenditure to about
$3600-4200 for 5000 units for a 32 page module.
12. Bottom Line: you will have a plethora of start up
fees: web hosting, art, licensing, possible taxes,
printing, ISBNs, software (you may have to buy Acrobat
4.0 or a publishing program, for example), hardware (I
didnt have a zip drive so I had to buy one of those to
back stuff up, and maybe you might have to upgrade to
a cable modem), incorporation filing fees (if you
decide to do that), etc. This is all stuff just to get
a printed product on the shelf.
But the biggest cost is time. It is a significant
commitment, particularly if you have a "significant
other" and a day job (like I do). It is also one hell
of a rush.
I hope this all helps. I know I over-answered the
question (and maybe didnt even answer the real
question) but I was lucky enough to have really
helpful people help me when Bill and I were starting
out and I wanted to pass on what I learned to help out
anyone else who was thinking of publishing d20 stuff.
Like I've said before, the more quality d20 stuff we
have out there the better we all do.
I'm always glad to answer these types of questions and
I think this is a perfect topic for the d20 list
becuase the practical application of the d20 SRD is
the use of that material in commercial open game
products made by third parties comaptible with D&D.
Enjoy! And feel free to email me privately if you have
more questions.
Sincerely,
Clark Peterson
Necromancer Games
=====
http://www.necromancergames.com
"3rd Edition Rules, 1st Edition Feel"
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