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Subject: Re: FLASH: Pricing Guide (+ Licensing)
From: Laura Mollett
Date: Sat, 20 May 2000 19:50:01 +0100

Franke,

> Thanks for your reply on the Clearnet pinball game. This opens up an
> interesting discussion...
Well I think it's interesting, thanks :)

> Whether the agency made their money back or not is of little concern (except
> to them ;-).
It mattered to *me* because it's an indication of how long/complex the work
is vs how much return you're getting. A lot of us are freelancers, running
our own businesses, and it's a serious question to be able to put in, say a
year's worth of work without some idea of making the basic input back. You
have to be solvent for another year to do that (I hafta feed those kids,
they really insist on it...) But I don't think that game took a year's worth
of work, so it becomes a moot point. Even as single-owner/employee
businesses, we can deal on this level.

> Splashworks were very smart to do a licensing deal because then
> they participate in the success of their work, beyond hourly/project fees.
Yes, it's a smart way to do business. The question then becomes, how do you
find/attract companies willing to do business this way, and will they
continue to be willing to do business this way if the input isn't as high as
you were originally thinking? And should Helen tell her client that the
games can't be bid out in the same way that the rest of the web design work
is? (hm, I hope this conversation doesn't run into price-fixing kinds of
things...) Branden was talking about making 10k for 6 hours of work, but
he's working through a "middleman" (I'm not quite sure what that means :).

I'd be happy to produce a flash pinball game, using the advertising imagery
and logos of any client that wants it for $5,000 a month for six months :)
(and I keep the rights). (Or honestly for quite a bit less than that -
should I refuse to work for less?) Ok, so now, do I create the game and then
look for the client? If I build up a portfolio by taking lesser paying jobs
or volunteering the way we often suggest designers get started, aren't I
lessening the ultimate value of the games?

I'd be fascinated in some realworld figures from clevermedia or the creators
of lenny loosejocks or similar companies - how much work are they getting,
how much does it pay, how long does the creation take, is there enough work
for as much competition as this group could put into this field? How much
trouble do they have convincing smaller businesses to license, or is all the
revenue generated by fortune 500 companies? Do I need Branden's programming
skills and original game concepts? How many of us can get by on different
versions of pinball (there's a mahjong game on the candystand site <sigh>...
it wasn't there last time I was.) How much do these businesses care about
the design and long-term interest of the game? (I wouldn't spend a lot of
time on that site for that little pinball game - there's too many other
versions that are better) etc. etc. :) And of course, noone but us cares
that my game is made in flash (and new for that reason) and that other one
is java, for example (cept that the flash version might run more smoothly).

> Shockwave
> and Flash artists will benefit from understanding the value of copyright and
> the power it gives them to sell specific rights, to specific parties
> (clients) for specific lengths of time, in specific industries and media.
Agreed. Thank you for saying it. Understanding your rights as a creator is
always important. But there are "real-world" issues - you have to be able to
get the work on those terms.

> The concept is also similar to performance fees which some ad agencies use
> (and which we have used successfully). If you create a "hit" you'll earn
> more money than if you create a dud.
This implies that you're creating the games on spec. That's much more
difficult for freelancers, and quite often the end results are not in
quality but in marketing. It's not a matter of creating a dud - everyone and
their brother might love my game, but if I can't get it seen in the right
way by the right people, it's not going to have the "hit status" that
someone who could afford major marketing efforts is going to be able to
provide. Did MS really make the best product or was Apple just stupid about
marketing - is a vhs better'n a beta? There's lots of wonderful work that
just doesn't get seen. Advertising is a complicated field and the public is
fickle.

> With the
> licensing model you can earn money while you sleep, just like creative
> artists in other fields.
Well writers, but traditionally artists just sell paintings outright. Unless
they're doing illustration, they don't generate a lot of royalties. And it's
been a long hard fight to get to the point where the publishers weren't
taking all the rights, and the creators dying in poverty, and basically all
publishing is done that way - there are standard rates paid to
writers/illustrators (graphic designers are often salaried). And a whole
network of traditional marketing - you write the novel on spec, find a
publisher who pays for it and markets it. And there are many many people who
*want* to be bestselling writers, not so many making it :) And the net is
cutting heavily into profits in these fields and where that'll take us all
is still way up in the air. (Why pay money for a comic book when you can
read one for free on the internet?) And the "free" sites on the net are
making their money in advertising (which sounds like the way to go to me -
though we're back to 'spec' work - set up a site, give away the
game/comic/product for free to attract people, and charge the advertisers
and you've got slashdot et. al.) and you're on the same model as television,
but then we're back to the amorphous quality of advertising. The businesses
putting up ads and paying to keep you in business want some idea that
they're getting something from it... do people buy products because they're
bombarded with product names? well, seems so... but it's complicated. Course
that's not for us to worry about - we build the sites people like and let
the advertisers be concerned about ROI, as long as they're willing to pay
for it? ;)

Hm, so I guess I should go build a site and start working on a large
user-base - I'll be back in a couple of years ;) (kidding)

Laura

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