Sharing profits from selling games

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Fizi
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Sharing profits from selling games

Postby Fizi » Mon Mar 25, 2013 2:16 am

Hi, im planning on selling my games in the future. And yes to do so I will subscribe too in the future :P

The shareware version will contain what The game originally intended to be, and the paid version will have extra features such as more stages, more guns.

Basically I worked alone, I do all the codes and the sprites for my game. However, I did asked some of my friends to contribute with the artworks, the musics, the vocal actings, and the story. Eventhough they knew what they contribute are all based on act of voluntary, I still want share some of the profits that I will make if the game was able to reach the market.

So the question is, I have no idea how to share the profits. For me it is unfair the divide the profit equally since 80% of the game was done individually. These people who contribute on the works for the game is not a part of the team since there is no team at all. Like I said, I work alone, but these guys who contribute will get their credit on behalf of their works.

Back to the topic, what is the proper way to share the profits? Example, 5% of each month sales for each contributors maybe? I dont know if its too much or too few. :?

Share your thoughts and opinions 8)
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AnvilHouse
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Re: Sharing profits from selling games

Postby AnvilHouse » Mon Mar 25, 2013 2:23 pm

Well there are many different ways to actually do this.

Royalties:
Basically the same as your example. Running a small percentage, based on listing price of final project. Make sure to use a percentage that works by how many friends helped out with the project, or by how many you intend to pay. A good guideline is to keep the shared percentage under 20%, keeping a steady flow of capitol to allow for further development.

Lump Sum based on projected monthly earnings:
After you do put the project up on the market, chart your profit for the first month. Using that information you decide a locked dollar amount that allows for popularity fluctuation and do a single payment to said parties. This can be done once or monthly depending on which you prefer. Fair warning if your project tanks you are stuck per agreement to obligate the full amount even if popularity tanks.

Value of work by time contributed:
Basically an hourly wage. Voice-over work is usually done by the minute. This is commonly used for voice-over work. Compile total length of audio segments per person and pay an amount based on that total. Fun Fact:Some voice-over artists can make up to $20 a minute of sound booth time.

Freelance single payment:

Pay them what you think their contribution is worth. A single image or voice-over can be worth $5 to thousands based on quality and size of the game. Freelance artists normally stipulate their own prices. So find out how much they want for it and haggle the price down until you feel comfortable.

Well those are the basics, hope it helps.
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Fizi
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Re: Sharing profits from selling games

Postby Fizi » Mon Mar 25, 2013 8:51 pm

this is really helpful. but i still need guidance to put exact percent to be shared from profits each month so these contributors feel its worth to contribute. this is what i think:
story: 5%
music: two people - 12%
voice actor: 5%
artwork: this guy do the most work than other so lets give him 10%
i take 18-20% since i do most of the job. 50% will be use as funding for next project.

so these contributors (5 of them) got 30%. i (alone) got 20%. is it okay?

however, like i said, it is based on contributing and not a partnership. should i pay these people each month or just give them like 5% from 12months profit each. is it okay?
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sinjin48
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Re: Sharing profits from selling games

Postby sinjin48 » Tue Mar 26, 2013 8:14 pm

Have a look at the laws first... I don't think it is legal to sell 001 games for profit, unless something has changed. See Mike first.
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Gamerdude
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Re: Sharing profits from selling games

Postby Gamerdude » Tue Mar 26, 2013 8:27 pm

No, it is if you subscribe, which he said he was going to do.
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AnvilHouse
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Re: Sharing profits from selling games

Postby AnvilHouse » Tue Mar 26, 2013 9:22 pm

Gamerdude wrote:No, it is if you subscribe, which he said he was going to do.


I was in contact with Mike about this a few days back, currently you can sell your games as long as you subscribe. There is no royalty agreement currently, he does plan on drawing one up for IOS games once it is implemented.

LegionXVII wrote:this is really helpful. but i still need guidance to put exact percent to be shared from profits each month so these contributors feel its worth to contribute. this is what i think:
story: 5%
music: two people - 12%
voice actor: 5%
artwork: this guy do the most work than other so lets give him 10%
i take 18-20% since i do most of the job. 50% will be use as funding for next project.

so these contributors (5 of them) got 30%. i (alone) got 20%. is it okay?

however, like i said, it is based on contributing and not a partnership. should i pay these people each month or just give them like 5% from 12months profit each. is it okay?


It really depends on your intended sale price and planned expenses for further projects. Since you are not registered as an official company (I don't know about any sales tax or business licenses needed in Malaysia or if they are required for internet sales) you can eliminate most of the costs for further projects: Such as electricity, insurance, and the like. As I said above, going over 20% for royalties is kind of extreme. I suggest lowering the percentage for contributors to a maximum of 25%, since you said in the first post that 80% of the work was done by you. It never pays to short-change your own talent.
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Fizi
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Re: Sharing profits from selling games

Postby Fizi » Wed Mar 27, 2013 2:42 am

this is really helpful. now i know what im going to do. thank you to those who help me :D
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AnvilHouse
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Re: Sharing profits from selling games

Postby AnvilHouse » Wed Mar 27, 2013 2:14 pm

Not a problem at all. :D I feel that all future game creators should have fair footing compared to the conglomerates.
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Samulis
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Re: Sharing profits from selling games

Postby Samulis » Sat Mar 30, 2013 4:07 pm

"Money for future projects" really is your percent... you shouldn't set anything aside that doesn't go to a person unless you are running a company with an office and so on. So in this case you are getting 70%, which is a bit unfair unless you did ALL the scripting and most of the art and at least 50% of the story. Remember that there are four main departments- audio, visual (graphics), coding, and story. Generally about 20%, 30%, 35%, 15% respectively for your average game, I'd estimate. It's cool to take a bit more because you had to advertise the game or host it or whatever else, but not much more. Generally one person should not get more than 50% unless there are less than three people working on a project.

Generally the pecking order goes:
Developer > Artists > Composer(s) > Story > Voice Acting

That can change depending on how many people you have for each and how much work there is. To make things easier, I recommend that first you talk to the people and see if they have any offer for their royalty. Be sure to make them aware that they are on a team of ____ people.

If they don't have an offer, my best tip is to think about royalties as a tip for each person. Divide 100 by the number of people on your team total. Now, if they did a good job and a considerable amount of work (quite a few characters or over 10 minutes of music or several pages of story or so on), pay them full or more than that amount. If they did little work, give them considerably less. In a game this size, any percent less than 5% is really going to be small, probably not even enough to buy a candy bar. However, royalties are still important because they show that you are respecting the help of others and their contributions.

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Fizi
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Re: Sharing profits from selling games

Postby Fizi » Sun Mar 31, 2013 5:32 am

there's no problem for me top pay these guys more than 20%. but there's one thing that im still not clear with. i dont know which to choose

1) Pay 20% from each month sale until the game no longer available in market
2) Pay 20% from a period of time sale (12month as an example), means just pay them once, then you will no longer need to pay them

since this this is contributing basis and not a partnership, i kinda prefer no. 2, but don't how many months should that 20% came out from. what do you guys think? :?
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Samulis
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Re: Sharing profits from selling games

Postby Samulis » Sun Mar 31, 2013 11:30 am

LegionXVII wrote:there's no problem for me top pay these guys more than 20%. but there's one thing that im still not clear with. i dont know which to choose

1) Pay 20% from each month sale until the game no longer available in market
2) Pay 20% from a period of time sale (12month as an example), means just pay them once, then you will no longer need to pay them

since this this is contributing basis and not a partnership, i kinda prefer no. 2, but don't how many months should that 20% came out from. what do you guys think? :?


Normally a game release (or a release of anything on the internet for that matter) is a splash and then decline. When sales die down to almost nothing, then you'll know it's time. If you have a peak in the future after you end commission, there's nothing saying you can't be nice and split that as well. Generally with a small indie game like this, you really don't need to be too concerned about the exact terms, although it's always a nice thing.

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Fireleaf
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Re: Sharing profits from selling games

Postby Fireleaf » Mon Apr 01, 2013 12:12 am

If there was no agreement to pay them before hand, technically you don't HAVE to pay them at all. I think I would if ever I sold something like that.
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Samulis
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Re: Sharing profits from selling games

Postby Samulis » Mon Apr 01, 2013 12:39 am

I do urge people to pay commissions. It's more for a sign of respect than actually trying to make money when the gross is very small.


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