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How to make ARGs profitable
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EntropyRising
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Joined: 16 Dec 2003
Posts: 13

notgordian

The nature of ARGs does seem to make it difficult to use products as a revenue source. I don't want to discount it yet, but you've brought up good points.

PostPosted: Wed May 23, 2007 2:06 pm
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ItWasntMeISwear
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Joined: 15 Feb 2005
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PostPosted: Wed May 23, 2007 4:41 pm
Last edited by ItWasntMeISwear on Sat Jun 23, 2007 6:02 pm; edited 1 time in total
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EntropyRising
Boot

Joined: 16 Dec 2003
Posts: 13

Re: Just throwing it out there

ItWasntMeISwear wrote:

I dropped the game so the idea went down with it. Besides, AotH never asked for money from the players to do the Audi "break-ins", so I thought the idea was in "bad taste". But I'm just throwing the concept out there.


I don't think it's bad taste, it's entertainment, people throw down $30 to go watch a two hour movie. Your idea is a tangible experience for players. Especially if they are meeting a character. Not a bad idea.

What ya'll think?

PostPosted: Wed May 23, 2007 5:26 pm
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Rekidk
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Joined: 19 Dec 2006
Posts: 992
Location: Indiana, USA

Re: Just throwing it out there

EntropyRising wrote:
ItWasntMeISwear wrote:

I dropped the game so the idea went down with it. Besides, AotH never asked for money from the players to do the Audi "break-ins", so I thought the idea was in "bad taste". But I'm just throwing the concept out there.


I don't think it's bad taste, it's entertainment, people throw down $30 to go watch a two hour movie. Your idea is a tangible experience for players. Especially if they are meeting a character. Not a bad idea.

What ya'll think?


I think that if the player is getting an experience that is worth $15 (plus whatever gas money/time it took them to get there), it's legitimate. Of course, that means that there has to be some substance to it--a $15 'meet-the-character' session wouldn't cut it, IMO.

However, as you've set it up, it seems to be valid. I know that if I were playing that game, I'd participate in the event (assuming it was relatively close to my location).
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PostPosted: Thu May 24, 2007 4:53 pm
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EntropyRising
Boot

Joined: 16 Dec 2003
Posts: 13

Trusted 3rd party

Ok, We've gone over the problems of pay for play and selling products directly.

What about a trusted 3rd party to handle it?

The site could exist as a go between on the PMs and the gamers.
The PM could sign up their site with the third party.
Product sales and donations could be set up for that particular game.
Gamers support the game by donations or purchases at that site.

The third party takes a small commission and cuts the PM a check.

I think this would solve a lot of problems implementing this struture. What do you guys think?

PostPosted: Fri May 25, 2007 5:16 pm
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ItWasntMeISwear
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PostPosted: Sat May 26, 2007 12:20 am
Last edited by ItWasntMeISwear on Sat Jun 23, 2007 6:03 pm; edited 1 time in total
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DerKork
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Joined: 15 Apr 2007
Posts: 174

I'm new to this stuff so here's what I think might work:

1) When using an ARG to promote a product:
Name-dropping - if your characters refer to that product (while it doesn't have to be the main focus of the game) on a regular basis, the advertising would probably be less noticed. The effect of an ARG - while being slightly different from "classic" advertising - can lead to an enhanced recognising of the product by people who usually ignore classic ads.

2) When using an ARG on its own:
Set up a merchandise store (cafepress anyone?) so everyone who is involved gets access to stuff related. Illustrations and great one-liners on T-shirts could help you making an ARG at least pay for itself. If the merchandise could help enhance the experience of the game by showing clues (while still looking good), why not?

Just my two cents.
(The author has no experience in advertising or merchandise trade and therefore is not a qualified source)

PostPosted: Sat May 26, 2007 1:57 pm
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konamouse
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Joined: 02 Dec 2002
Posts: 8010
Location: My own alternate reality

Cafepress et al - with fun memories of the ARG, unfortunately, don't make that much money for the site owner. Like $1 out of $10 spent. But if it's a GOOD ARG, then many people might want souveniers, it could generate a few bucks...but not enough to make ARG a profitable business.

Dave S. tried that in a bigger scale with book sales. During Urban Hunt he published Dead Poems, a book that was part of the story but also available for purchase by the players (yes, I got one). He could tell you more about that side of the business. For CTW2, he published a comic book - as part of the story the main character had created this comic book and it was integrated into the game. But in neither case did any player have to buy the product to play the games.
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PostPosted: Sat May 26, 2007 2:20 pm
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Caz
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Joined: 18 Aug 2006
Posts: 127

 Cost to Profit Rate

As for making a profit.
no one as yet (on this topic) has tried to work out how must it cost to run a ARG as you need to know this to know how must money you have to make before you make a profit.

as I see it costs brake down like this.

cost of webs site for a year
Shoe-String ( myspace/ geocites ) Free
Non-pro( 1&1/ Mr site) £180
Pro( full web site) £5,840

Cost of PM's
Shoe-String (your self) Free
Non-pro(you and friends) Free
Pro(two people working full time) £30,000

marketing
Shoe-String (word of moth on forums) Free
Non-pro(small ad rabbit holes) £60
Pro(ad rabbit holes in news papers and magazines) £10,000

other Media (i.e. video)
Shoe-String (cost of a small web cam) £30
Non-pro(small camera and your friends in the park) £200
Pro (30 minutes of professional shot Video) £45000

prizes
Shoe-String (you don't give out a prize) Free
Non-pro(small token to how solves the last puzzle) £10
Pro(Big money will pull in players but not all ways ARG'er) £50000

live events
Shoe-String (your self and a public space) Free
Non-pro(Renting a room in a hotel/pub) £250
Pro(Renting out large spaces/actors/filling out safety forms) £10000

other stuff (the small thing that suck up cash)
Shoe-String £59
Non-pro £310
Pro £48252

total
Shoe-String £89
Non-pro £1010
Pro £199092

[ok be for I get lots of anger posts saying thing cost nothing like that. i work more at the shoe string end my self, but if any know of any hidden costs not listed or better values for the costs listed feel free to post. £1 UK == about $2 US]

If you go down the Pro Rout and where each player plays £7 (about $14)
You have to have 28,442 plays be for you make a penny in profit.

You could cut costs and run a pro game on £10000 then you only need 1,429 plays at £7 a pop be for your make a profit.

You need to work out who must you what to sink in and how many players you get before you can work out what and how to charge.
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PostPosted: Sat May 26, 2007 9:11 pm
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konamouse
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Joined: 02 Dec 2002
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The biggest cost is personal time. Human hours and hours. Sure they are donating their time in a grassroots game. But that is why so many fail - the need to devote so much time that is unpaid. We have to put food on the tables and gas in the cars, which requires jobs that earn a paycheck.

If you think playing a game takes time, you should try PMing a game. Labfly told me it was a "full time job" while she was doing Sammeeeees. Unpaid. And she made & mailed/shipped out T-shirts and other packages. And she seriously devoted herself to the game with very little help (her acting friends only did the work on-camera, she did all the emails herself). Her only real help was Wendy, who did the packing & shipping (and the phone calls as "herself" when we were trying to contact Betty via Wendy's phone).

Ask Dave about his time spent in the first CTW. He was working at a real job, and he had a number of BTS folks helping out with some of the characters and some of the websites; the but the puzzles were all his, as was the adjustments needed when we (players) got stuck. And he had to direct his BTS folks who were only told very minutely what they needed to know, and only just when they needed to know (and nothing more, since most of us were also playing the game). That was a HUGE time committment for him. Of course, he later turned that into a full time job himself, but I'm sure he can share lean time stories (and the poor profit margin for CafePress).

I'm still thinking that outside funding via advertising is going to be the fundamental means for profit in ARG. If profit is your only goal.

When the goal is to tell a good story, then you can't think about profit, but you have to be totally committed to the process.

Pay-to-play may work if you have a very good reputation. I thought Virtuquest had that rep, and I was willing to pay-to-play (and it was only $5). But after Township Heights, I'm not happy with the outcome and won't be bothered with them for a long time (sorry VQ, you had something going well but you dropped the bucket too quickly at the end - where is that $25 you promised me?).
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PostPosted: Sun May 27, 2007 12:55 pm
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Mikeyj
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Joined: 18 Oct 2004
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ItWasntMeISwear wrote:

Since "Perplex City" will pop its head into this conversation at some point, if it has not already (its midnight, I refuse to read right now), they made a product that was "self-sustaining". This means that those who buy the product can use it without being involved with the game. I don't associate "Perplex City" with the above paragraph for that reason.


I read somewhere recently that they're not actually in profit yet either. Despite my best card purchasing efforts.
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PostPosted: Thu May 31, 2007 11:28 am
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Caz
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Joined: 18 Aug 2006
Posts: 127

Mikeyj wrote:
ItWasntMeISwear wrote:

Since "Perplex City" will pop its head into this conversation at some point, if it has not already (its midnight, I refuse to read right now), they made a product that was "self-sustaining". This means that those who buy the product can use it without being involved with the game. I don't associate "Perplex City" with the above paragraph for that reason.


I read somewhere recently that they're not actually in profit yet either. Despite my best card purchasing efforts.


Mind candy will had only made about £10 to £15 for each box they sell (after costs of printing and stuff) so get up to the £100,000 prize they had have to have sold 10,000 boxes that 1,920,000 cards.

Think about all the other thing they did for us like light marks they must have cost a bit to make and they cost them 44p just to post them out to you. More if you lived out side the UK.

3 live events, 20 some high end websites the list go on and on.

So its no wonder that they ran at a bit loss, but I think make this season.
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PostPosted: Thu May 31, 2007 12:49 pm
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FLmutant
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EntropyRising wrote:
The nature of ARGs does seem to make it difficult to use products as a revenue source. I don't want to discount it yet, but you've brought up good points.


I'd clarify your observation to say that making a profit selling products is never easy. If it was, everyone would be doing it. I don't think ARGs make that more difficult, Entropy, I'm banking on the opposite. Any entertainer would tell you that a fan is better is a customer (as a fan suggests someone who might buy again, at least if you handle it right.) ARGs are a better than average way to build a fan base, because you're giving people a shared experience that helps bond them together.

There are ways to generate revenue off of content and experience and community fueled by a fan base. Actually, there's dozens of disciplines for revenue creation that you can rob techniques from. Ultimately, though, you're going to have to be as good of a product developer as you are an ARG puppetmaster -- a bad product could even hurt the garden of fandom, in the same way a crappy ARG would hurt the growth of fans.

Unfortunately, that frequently means revenue follows later than you would want, truer than even in other models of revenue generation. And revenue generation has to be grown to profitibility, it rarely ever starts there. There are ways to help reduce that problem, but never to eliminate it. And there are side effects to those solutions ranging from poverty to loss of control to financers.

As an example, I don't expect to start to see revenue even start rolling in for Eldritch Errors for many months to come. I have to spend money on it in the meantime. As producers, we're funding that from the profits of other kinds of work we do (that's essentially the GMD Studios balancing act.) That is a riskier strategy than usual (in general, I'd rather spend someone else's money) but it brings more control.

One advantage of ARGs as fan incubation platforms is their strength at mutating into other forms of media. Each of those forms of media have their own built-in trench of revenue generation. So if we accept the maxim of "ARGs are a good way to market films" than can we follow the maxim of "films are a way monatize ARGs"? Maybe, maybe not, have to study the details of that marketplace, right? Okay, what about bands? plays? books? comics? television shows? web serials? video games? puzzle cards? t-shirts?

You get the drift. Each of those channels is its own challenging puzzle of profitibility, but have an existing fan base sure lets you start from something other than a dead stop. And lets you do it in a way that makes it mostly about creative labor to build that initial fan base.

PostPosted: Thu May 31, 2007 2:43 pm
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Phaedra
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FLmutant wrote:
(in general, I'd rather spend someone else's money)


Who wouldn't? Laughing
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PostPosted: Thu May 31, 2007 2:55 pm
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konamouse
Official uF Dietitian


Joined: 02 Dec 2002
Posts: 8010
Location: My own alternate reality

I like that analogy. Build the fan base, then sell the T-shirts.

Like a musician. You give it away for free to get the fans. Then you start charging a little bit and the fans come, they spread the news (word of mouth) and get you more fans. If you get airplay and more fans you can charge more for your music. You sell a song first, then you sell the album. You get a bigger venue and sell more tickets. You sell more Tshirts. You make millions. If you're good.

But you still started out starving like all the others. And so many fail. Fortunately, the cream rises to the top.
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PostPosted: Thu May 31, 2007 5:15 pm
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