{"id":279,"date":"2014-09-04T22:02:05","date_gmt":"2014-09-04T22:02:05","guid":{"rendered":"https:\/\/www.iterativegames.com\/reiterated\/?p=279"},"modified":"2014-09-04T23:52:20","modified_gmt":"2014-09-04T23:52:20","slug":"post-kickstarter-finance-by-the-numbers-a-one-man-studio-postmortem","status":"publish","type":"post","link":"https:\/\/www.iterativegames.com\/reiterated\/?p=279","title":{"rendered":"Post-Kickstarter Finance By The Numbers; A One-Man Studio Postmortem"},"content":{"rendered":"<p>Full disclosure is the primary purpose of this post. The backstory &#8211; in March of 2013, I ran a 30 day Kickstarter for my cyberpunk 2d shooter &#8216;Contract Work&#8217;; it finished just over it&#8217;s goal of $5000 with 110 backers. Although the campaign was a success, the initial\u00a0public release was a dismal failure, selling only 3 copies (though many more people did play the game). This is a breakdown of the money numbers and thoughts on what worked, what didn&#8217;t, and what happens now.<\/p>\n<p>Final Kickstarter Total: <strong>$5086<\/strong><\/p>\n<p><strong>Cost from\u00a0Kickstarter\/Amazon\/failed pledges<\/strong>: $4627 (<strong style=\"color: #d95745;\">-$459<\/strong>)<\/p>\n<p><strong>Taxes<\/strong> (rough estimate after deductions applied): <strong style=\"color: #d95745;\">-$500<\/strong><\/p>\n<p><strong>Personal Development Costs<\/strong> (I only count costs for 2 months @$1000 a month for living expenses, see note below): <strong style=\"color: #d95745;\">-$2000<\/strong><\/p>\n<p><strong>Material Costs, broken down as follows:<\/strong><\/p>\n<ul>\n<li>Subscription to GameTextures.com (7 mo at $20\/month): <strong style=\"color: #d95745; font-style: normal;\">-$140<\/strong><\/li>\n<li>Asset purchases from GameDevMarket.com: <strong style=\"color: #d95745; font-style: normal;\">-$40<\/strong><\/li>\n<li>MediaLoot &amp; TextFX licenses (GUI assets): <strong style=\"color: #d95745; font-style: normal;\">-$70<\/strong><\/li>\n<li>Replacement Video Card: <strong style=\"color: #d95745; font-style: normal;\">-$110<\/strong><\/li>\n<\/ul>\n<p><strong>Hosting<\/strong> (dreamhost.com at $13\/mo): <strong style=\"color: #d95745;\">-$234<\/strong><\/p>\n<p><strong>Marketing<\/strong> (hiring a marketing firm, at discount): <strong style=\"color: #d95745;\">-$1440<\/strong><\/p>\n<p><strong>Customer\u00a0Acquisition<\/strong> (via Facebook):\u00a0<strong style=\"color: #d95745;\">-$647<\/strong><\/p>\n<p><strong>Freelance Artwork\u00a0<\/strong>(multiple pieces): <strong style=\"color: #d95745;\">-$300<\/strong><\/p>\n<p><strong>Freelance Content Creation<\/strong> (LetsPlay video): <strong style=\"color: #d95745;\">-$50<\/strong><\/p>\n<p><strong style=\"color: #d95745;\">Total Cost through Sept, 2014: $5990<\/strong><\/p>\n<p><strong>Total Revenue Post Kickstarter: $9.99<\/strong><\/p>\n<p>Note &#8211; \u00a0I only count April &amp; May of 2013 as time I spent working full-time on Contract Work while funded. I was laid off in Jan of 2013 and besides a little freelance work (~$1000 worth) I paid all my development &amp; living costs out of pocket while planning &amp; executing the Kickstarter. At the end of May 2013 with I started contracting which turned into a full-time job. I don&#8217;t the cost of my developing Contract Work while working full time (there is probably some associated opportunity cost).<\/p>\n<p>The $1000\/month figure for cost of living is very conservative. My rent alone is more than $1000, but I admit that I could have found cheaper lodgings (it would have taken time &amp; money, and I hate moving). For that reason I feel that\u00a0taking $1000 as my own &#8216;salary&#8217; while using\u00a0the Kickstarter funds is reasonable (the rest of my costs being paid out of pocket).<\/p>\n<h1 class=\"entry-title\" style=\"color:#ffffff\">What Didn&#8217;t Work<\/h1>\n<p>Let&#8217;s start with the unhappy stuff. First the obvious &#8211; the marketing spend and customer acquisition didn&#8217;t result in the sales I was looking for. Importantly, I don&#8217;t blame the company I hired for\u00a0my marketing campaign; they really did their best to raise awareness, even getting several articles published on bigger sites. But there was some serious cart-before-horse syndrome, as the game I was selling didn&#8217;t have good marketable points. Graphics? Meh. Concept and environment? Fuzzy at best. Gameplay? Disjointed, confusing at times.<\/p>\n<p><a href=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2013\/07\/DivX-Plus-Player-2013-07-20-12-44-55-51.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-114\" src=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2013\/07\/DivX-Plus-Player-2013-07-20-12-44-55-51.jpg\" alt=\"DivX Plus Player 2013-07-20 12-44-55-51\" width=\"1280\" height=\"704\" srcset=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2013\/07\/DivX-Plus-Player-2013-07-20-12-44-55-51.jpg 1280w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2013\/07\/DivX-Plus-Player-2013-07-20-12-44-55-51-300x165.jpg 300w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2013\/07\/DivX-Plus-Player-2013-07-20-12-44-55-51-1024x563.jpg 1024w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2013\/07\/DivX-Plus-Player-2013-07-20-12-44-55-51-500x275.jpg 500w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" \/><\/a><\/p>\n<p>Good marketing won&#8217;t save a half-baked\u00a0title (in retrospect, the game really needed another 6-9 months of development time to shine). Ultimately I think the unreasonable time frame I set for myself (zero to commercial product in 9 months) doomed the marketing campaign from the start. Given the knowledge I have now, I would have avoided a traditional marketing campaign altogether.<\/p>\n<p>The customer acquisition is more interesting. First, the Contract Work page has over 1,300 likes, which is not a bad for the spend ($0.50 per like). However, the likes have not translated to engagement or sales; it&#8217;s hard to determine\u00a0whether that&#8217;s due to the quality of the fans or the quality of the game. The same goes for sales &#8211; the game has a decent number of plays, so\u00a0the issue with converting plays to sales may lie more in the game\/ purchase process than the quantity or type of player being directed to the site.<\/p>\n<p>This has also created a standing community, albeit a quiet one. I remain hopeful that users\u00a0can be engaged through quality content sharing and outreach, and am planning to\u00a0try expand the community\u00a0in the future through organic and paid ads. Another upside is that I&#8217;ve collected an e-mail list of about 300 addresses\u00a0from players of the game that I hope to engage as well. There is definitely potential.<\/p>\n<p>If I could do it all again, I&#8217;d wait until the game was in better shape to start my community, then spend a lot of time refining the purchase process before asking people to buy the game. I always feel the first part of good marketing comes from\u00a0having a good product to sell.<\/p>\n<p>A last note on some of the unhappy realities of Kickstarter &#8211; it sucks seeing 9-10% disappear instantly, but worse is not accounting for the taxes on the money later. I believe just about\u00a0every state Kickstarter counts as\u00a0personal income for tax purposes, so plan\u00a0as such.<\/p>\n<h1 class=\"entry-title\" style=\"color:#ffffff\">What Worked<\/h1>\n<p>In terms of &#8216;bang for buck&#8217;, the clear winners were artwork &amp; assets. This will differ from team to team, but my skillset is\u00a0primarily\u00a0programming with\u00a0some knowledge of art. Good art takes me a long time to create and therefore it&#8217;s almost always worth it for me to pay for art and focus on development. I feel I&#8217;m lucky in this regard &#8211; I can always move forward with placeholder art, while it\u00a0might be more difficult to make progress without a reliable coding resource.<\/p>\n<p>The GameDevMarket assets were the best\u00a0value, but I&#8217;ve utilized the most assets (in term of raw numbers) from GameTextures. Both GameTextures and GameDevMarket are new resources that (to the best of my knowledge) did not exist when I finished my Kickstarter, but I&#8217;d expect more sites like them in the future.<\/p>\n<p>My collaboration\u00a0with a couple great art\u00a0contractors (Pui Che and Tyler Johnson) has been nothing but delightful. Not only does it save me time but boosts my motivation every time they deliver a cool new asset. Many thanks to Robert Lockhart for referring me to these talented folks; obviously not everyone will be as good as these guys, but I feel that using\u00a0personal recommendations goes a long way to finding like minded and talented people you want to work with.<\/p>\n<div id=\"attachment_281\" style=\"width: 990px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/UpdatedCharacter.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-281\" class=\"size-full wp-image-281\" src=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/UpdatedCharacter.png\" alt=\"The final combination of purchased &amp; contracted art assets - much prettier than what I could do!\" width=\"980\" height=\"500\" srcset=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/UpdatedCharacter.png 980w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/UpdatedCharacter-300x153.png 300w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/UpdatedCharacter-500x255.png 500w\" sizes=\"auto, (max-width: 980px) 100vw, 980px\" \/><\/a><p id=\"caption-attachment-281\" class=\"wp-caption-text\">The final combination of purchased &amp; contracted art assets.<\/p><\/div>\n<p>I&#8217;ve also just started contracting with\u00a0the talented team at P1PR to start generating content. They&#8217;ve finish an excellent first look &#8216;<a href=\"https:\/\/www.youtube.com\/watch?v=8aLzlUF9mIE\">LetsPlay<\/a>&#8216; video which has gotten good responses. Again, this is an area that requires a lot of effort and time on my part to generate quality content, so it&#8217;s a good investment in my opinion.<\/p>\n<p>In general &#8211; figure out your weaknesses and use your resources to counteract them. For me the biggest time sink was art;\u00a0investing more early could have saved me a lot of time and effort in the long run.<\/p>\n<h1 class=\"entry-title\" style=\"color:#ffffff\">What Now?<\/h1>\n<p>I&#8217;m working on fulfilling my backer rewards now. Even though I didn&#8217;t offer any physical rewards, I did not budget enough time to finish the rewards in my original plan.\u00a0I&#8217;ll also be co-ordinating with my contractors for the artwork tied to these\u00a0rewards, so expect the cost for contract artwork to continue to rise. I&#8217;ll continue to utilize my team at P1PR to generate quality content to try engage my existing community, and use\u00a0some ad spend to grow. Long term I plan to work on getting the game on Steam Early Access\/Greenlight (if it\u00a0still exists) as well as additional portals for distribution. But, as I&#8217;ve learned, it&#8217;s important not to get ahead of myself; the primary\u00a0goal right now is to make Contract Work a great game to play.<\/p>\n<p>I&#8217;ve had the enormous luxury to be able to get a head start on my game through Kickstarter funding and survive\u00a0a bad launch by having a full time job. The time commitment sucks, but it has given the\u00a0runway and resources to put the game into a state where it has a better chance to succeed. I also feel fortunate that I planned this as a one man endeavor; no one else was ruined by a terrible launch or bad planning. On the bad days I don&#8217;t have to worry about a crazy high burn rate. It can get lonely, but I know that as long as I stay motivated that Iterative Games won&#8217;t die.<\/p>\n<p><a href=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/cropped-BlogHeader1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-278\" src=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/cropped-BlogHeader1.png\" alt=\"cropped-BlogHeader1.png\" width=\"1000\" height=\"288\" srcset=\"https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/cropped-BlogHeader1.png 1000w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/cropped-BlogHeader1-300x86.png 300w, https:\/\/www.iterativegames.com\/reiterated\/wp-content\/uploads\/2014\/09\/cropped-BlogHeader1-500x144.png 500w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<p>Winston Churchill is quoted as once saying &#8220;Success is going from failure to failure without the loss of enthusiasm&#8221;. I might add that includes going from failure to failure without bankrupting yourself (too badly). So at the end of the day, even if I didn&#8217;t make a cent from\u00a0my first release\u00a0&#8211; Contact Work\u00a0is still alive, I&#8217;m still getting the chance to do what I love, and I really can&#8217;t ask for more.<\/p>\n<p><em>Many thanks again to my loyal and patient backers. I wouldn&#8217;t be here without you.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Full disclosure is the primary purpose of this post. The backstory &#8211; in March of 2013, I ran a 30 day Kickstarter for my cyberpunk 2d shooter &#8216;Contract Work&#8217;; it finished just over it&#8217;s goal of $5000 with 110 backers. &hellip; <a href=\"https:\/\/www.iterativegames.com\/reiterated\/?p=279\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,16,17],"tags":[],"class_list":["post-279","post","type-post","status-publish","format-standard","hentry","category-contract-work","category-iterative-games","category-kickstarter"],"_links":{"self":[{"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=\/wp\/v2\/posts\/279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=279"}],"version-history":[{"count":10,"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=\/wp\/v2\/posts\/279\/revisions"}],"predecessor-version":[{"id":304,"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=\/wp\/v2\/posts\/279\/revisions\/304"}],"wp:attachment":[{"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iterativegames.com\/reiterated\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}