![]() ![]() ![]() Pledge managers are not a must, but for anything but the simplest campaigns, are an incredible tool to keep track of shipped pledges, provide tracking numbers to backers and even communicate. #Kickstarter fees free#Kickstarter offers the possibility to collect backer's delivery data free of charge, but their surveys are still rather basic, thus a lot of projects use an additional platform called a pledge manager to collect addresses, while offering various add-ons and charging for shipping (collecting shipping fees outside Kickstarter is one way to minimize the fees paid, but not a reason in itself to use a pledge manager). So, after deducting the designer's royalties, the publisher still holds $87.3. The difference to the percentage model is not large, so for simplicity sake, we will assume that a royalty level of $4.5 from a $100 game is realistic. The overall formula becomes: Prod_cost x 6 x 0.35 x 0.08, in our case $25 x 6 x 0.35 x 0.08 = $4.2. From that, the publisher retains 35% (with a usual 65% discount), from which the designer gets a royalty of 8%. ![]() We assume that, if that $100 Kickstarter game had an MSRP, it would be about 6 times its production cost (and I have to anticipate here, the production cost is going to be $25), so $150. In the second scenario, the math is a bit more complicated, but not a lot more. Assuming the average of the two (4.5%), the overall cost for the publisher per copy is $4.5. In the first scenario (percentage), designers will usually get between 3% and 6% of the raised funds. I will analyze two scenarios: one with royalties set at a percentage of funds raised, and a second using a simulation of the distribution model. For crowd-funded games, designer's royalties can be set differently, usually as a percentage of the funds raised, but publishers (us included) have also used more complicated approaches, like simulating the classic model. Most designers we work with have their royalty level set between 7% and 9%, but this covers the classic distribution + retail model. A typical designer fee is 6% to 10% of the net sales of the publisher. Since any game has a designer (or a group of designers, which I will henceforth still name "a designer"), that designer needs to be compensated for their work. However, for everyone's piece of mind, Indiegogo has very similar fees.Īfter drawing the line: from your $100 game (that's as much as backers pay) the creator retains $91.8 after fees. I will not discuss other crowd-funding platforms, as the overwhelming majority of board games which go through this process do not use another platform. These fees are identical whether the creator uses Kickstarter or Gamefound. On top of that, the fee processor - Stripe - retains 2.9% + $0.3, for a grand total of another $3.2. ![]() The MSRP will be bigger - as backers always rightfully expect a discount - and there will be no addons, just to keep math simple enough.įrom the overall funds raised, Kickstarter retains a fee of 5%, which accounts for the first $5 collected from every $100 game box. My theoretical model starts from a simple assumption: a publisher raised funds via Kickstarter for a game with a listed price of $100. To back up my assumptions, I will use real like examples of Snowdonia: Deluxe Master Set, Yedo: Deluxe Master Set, Dark Ages: Holy Roman Empire, and other titles - games which we wither crowd-funded ourselves or have direct knowledge of. To make the numbers look easy, I will use a model based on a $100 game, this way the math will look clean and clear. I'll get back to that towards the end of the post. The principles remain the same, but the advantages of really large campaign are there, undeniable. All that I can cover is "regular" campaigns, which raise between $100K and $500K, with no more than 5000 backers. Companies like CMON Global Limited or Awaken Realms would probably be able to offer a different perspective on how profitable a multi-million-dollar campaign can get. But I must start with a disclaimer.ĭisclaimer: Board&Dice has run more than 20 crowd-funding campaigns, over 7 years, however none of our campaigns have reached more than 0.5M USD. In the comments section there were a few requests about a breakdown of the pricing of Kickstarter games, so that's what I am trying to do here today. In a recent post I talked about board game prices, how they are constructed and who retains part of the value of these games. ![]()
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