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My business model. Need Suggestions.
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djs4000
Greenhorn

Joined: 17 Feb 2006
Posts: 9

My business model. Need Suggestions.

Hello there,
Im in the process of planning a an action based arg with a business model to generate profit or at the very least, cover the costs of running the arg. The arg concept is similar to the college game assassin (Think of StreetWars, only less tongue-in-cheek and with a story told through chapters). Similar to StreetWars, players have to pay a registration fee in order to play. Unlike StreetWars, my arg would be told through chapters that players can participate in. Every chapter would play like a game of assassin (though the rules would be altered slightly every time), and players would pay for each game they participate in. Of course there would be prizes and rewards as an incentive for people to keep playing.

What do you think? Would you pay to play (assuming the arg was any good) and would people who have no clue what an arg is pay to play? Feel free to tear this apart in every which way, I need a solid plan before I go through with this. If anyone is interested in part of the story line Id be glad to share, though its still only in the preplanning stages.

PostPosted: Sat Feb 18, 2006 2:01 am
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zeldafan8626
Decorated


Joined: 10 Jan 2005
Posts: 193
Location: Hyrule Castle

Well, play to pay ARG's have been run in the past (but I can't seem to recall the name off hand, EA did it I believe)

From what I know they offered a free trial and if you liked it you could pay a monthly fee. A few people did it but at the end it was a failure (I'm not sure but I think they opened up to anyone by the end)


If I could play it for a bit and get a feel for the game, then if I liked it I might be willing to pay, but without any type of trial, I wouldn't touch it with a 10 foot pole.

Anyway, Good luck.
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PostPosted: Sat Feb 18, 2006 2:58 am
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taozero
Veteran


Joined: 01 Mar 2005
Posts: 87
Location: Back in Alaska...

The game in question was called 'Majestic', which featured a beta testing period, and may or may not have had a free trial. It was cancelled shortly after 9/11 (and that's about the extent of my knowledge on the subject).

While in theory a pay-to-play ARG could run successfully, you would take a very definite hit in the pocketbook before returns started showing up. For a game based on 'Assassin', you would probably do well to also have an attorney on hand (read - more money out of pocket) to make sure you don't get slammed with a lawsuit when an overzealous hunter breaks a victim's nose, or something of the like.

However, it does sound like an interesting proposal, to say the least.
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PostPosted: Sat Feb 18, 2006 3:05 am
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rowan
Unfictologist

Joined: 12 Apr 2004
Posts: 1966

I agree that you would need some sort of trial run. Not only would you be looking for something high quality to lure players in, you also need to prove yourself trustworthy as a PM. It's one thing for players to get into a free game not knowing who the PMs are. It's something completely different to pay for an experience when you know nothing about who is doing it.
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PostPosted: Sat Feb 18, 2006 4:02 am
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djs4000
Greenhorn

Joined: 17 Feb 2006
Posts: 9

Here's a bit of a revised concept:

The game will start purely as a pay-to-play assassin contest. That has been proven to be succesful (though not quite an arg). Several of these could be run each time recruiting more people. After a while, when a bit of reputation is built, players could be invited to play again (again, pay-to-play). Only this time there would be side-missions. Missions could be used to score points for side prizes but would be risky because everyone would know where the target might be. The missions would hint a greater plot than just a game. Missions could also include the recruting or promoting of the game, hence earning reputation and player base.

PostPosted: Sat Feb 18, 2006 5:17 am
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MageSteff
Pretty talky there aintcha, Talky?


Joined: 06 Jun 2003
Posts: 2716
Location: State of Denial

djs4000 wrote:
Here's a bit of a revised concept:

The game will start purely as a pay-to-play assassin contest. That has been proven to be succesful (though not quite an arg). Several of these could be run each time recruiting more people. After a while, when a bit of reputation is built, players could be invited to play again (again, pay-to-play). Only this time there would be side-missions. Missions could be used to score points for side prizes but would be risky because everyone would know where the target might be. The missions would hint a greater plot than just a game. Missions could also include the recruting or promoting of the game, hence earning reputation and player base.


So, you are thinking more along the line of a LARP, or Scavenger Hunt flavored deal then?

I agree with the others, I would certainly not want to pay for an unproven comodity unless there was a "trial" period.

From what I have seen so far, I don't think any game has "paid" for itself, but I am waiting to hear if Perlexity manages to at least break even with it's cards and all.

Most grassroots have had a donation kitty set out for those who could afford and were inspired to make a donation, but I don't think any of them have been able to break even using that method. The corporate backed games have all worked with an advertising model, as they were directly or indirectly selling something and never intended the ARG to make money (again, I'm waiting to hear how Perplexity does).

Edited to add

I don't know how long you have been hanging around the ARG universe, but since you just joined and only have a couple of posts to your nick, I would STRONGLY suggest you hang around a bit, read a lot and get your feet wet on a few projects before embarking on your own project. The benefit is that you build up your reputation before you start your game.
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PostPosted: Tue Feb 21, 2006 3:57 pm
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SirQuady
Unfettered


Joined: 15 Jan 2006
Posts: 576

Besides Majestic, both Search4E and TerraQuest were attempted ARGs that tried to use the pay-per-play model. It is interesting to note that all 3 of them failed. I'm not trying to discourage you, as the pay-per-play weren't the only reasons each of these ARGs failed (for both Majestic and Search4E, one of the big reasons for their failures was that the gameplay was erratic, and there were long periods of inactivity). Unfortunatley, the pay-per-play model, may have contributed to this failure as well (one of the main reasons behind the failure of TerraQuest was that there weren't enough players).

Thus, like MageSteff, i suggest you play some ARGs before getting into this stuff. I suggest you do this so that you don't repeat the mistakes of all the PMs of the past who have had games implode upon themselves. if you're serious about this, i'd also suggest you get your hands on a copy of Dave Szulborski's book, "This Is Not A Game: A Guide to Alternate Reality Gaming". It's very informative. As well, i also suggest that you find other people to work with in making this game.

But in any case, i wish you luck with your endeavour!
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PostPosted: Tue Feb 21, 2006 9:08 pm
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mbhulo
Boot

Joined: 28 Feb 2006
Posts: 51

I'd like to restart this topic in light of Perplex City.

While their business model is genius - you're not paying for content, you're paying for an addition to the content - people are still paying for the game.

What are our thoughts on this?

PostPosted: Mon Mar 13, 2006 8:00 am
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AngusA
Boot


Joined: 02 Jan 2006
Posts: 44
Location: London, UK

It was definitely a clever idea to tack the puzzle cards onto a game to generate revenue. But will people keep going back to buy each new wave of cards as it is an expensive pasttime? Especially when you can play the game for free. Will the card buyers be happy to keep subsidising the game for the non card buyers? I suspect that Mind Candy have some other ideas on revenue streams - the MC website says they are looking to work with other companies, so there may be possiblities for product placement or advertising in the game. Having a working game with a large following makes it a much more attractive proposition than an idea on paper. So, maybe we'll see that shift over time.

PostPosted: Thu Mar 23, 2006 10:37 am
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MageSteff
Pretty talky there aintcha, Talky?


Joined: 06 Jun 2003
Posts: 2716
Location: State of Denial

AngusA wrote:
It was definitely a clever idea to tack the puzzle cards onto a game to generate revenue. But will people keep going back to buy each new wave of cards as it is an expensive pasttime?


Given the success of other collectible card games (Magic the Gathering, etc.) I would have to say the answer is "yes." If it is something that people enjoy then they will continue to purchase cards.

Quote:

Especially when you can play the game for free.


See that is one feature I like. You do not have to pay anything to enjoy the game. The cards are an enhancement that you can purchase if you so desire. You are not required to purchase cards to play.


Quote:
Will the card buyers be happy to keep subsidising the game for the non card buyers?
I don't think the people who buy the cards feel they are doing so just to subsidize the game. They are buying the cards to enhance their own experience. That they also enjoy sharing the cards with those who have not bought cards is very nice of them.


Quote:

I suspect that Mind Candy have some other ideas on revenue streams - the MC website says they are looking to work with other companies, so there may be possiblities for product placement or advertising in the game. Having a working game with a large following makes it a much more attractive proposition than an idea on paper. So, maybe we'll see that shift over time.


Personally, I like the game specific swag. Product placement is only good if it is subtle. I can't see how another universe would also have brands from earth -possible, but given the differences in the culture of PXC, personally it would make my suspension of disbelief a bit harder.[/i]
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PostPosted: Thu Mar 23, 2006 11:02 am
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AngusA
Boot


Joined: 02 Jan 2006
Posts: 44
Location: London, UK

Bringing it back to business plans and how to finance a game, how many cards do you have to sell to finance: 17 staff, London offices, office equipment, events, bills etc etc and then generate a return on the $4.5m VC? To my mind that's a lot of cards. If it was my VC money, I'd want to see other revenue streams than just cards.

I'm not sure the Magic analogy is necessarily accurate here as once a card has been solved, the silver bit scratched and the game completed, what value does the card have? (Seems more like the football stickers I used to collect as a kid). A Magic card can be used over and over as long as you have an opponent. The game never finishes.

If I was putting a proposal together for serious money, I'd think about how to leverage the game to bring in other sources of revenue. How about Violet's Poker rooms Wink

PostPosted: Fri Mar 24, 2006 1:14 pm
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MageSteff
Pretty talky there aintcha, Talky?


Joined: 06 Jun 2003
Posts: 2716
Location: State of Denial

AngusA wrote:
Bringing it back to business plans and how to finance a game, how many cards do you have to sell to finance: 17 staff, London offices, office equipment, events, bills etc etc and then generate a return on the $4.5m VC? To my mind that's a lot of cards. If it was my VC money, I'd want to see other revenue streams than just cards.

I'm not sure the Magic analogy is necessarily accurate here as once a card has been solved, the silver bit scratched and the game completed, what value does the card have? (Seems more like the football stickers I used to collect as a kid). A Magic card can be used over and over as long as you have an opponent. The game never finishes.


In the USA, in order to tlelmarket to someone, you must have a previous business relationship established. I don't think whoever is running PXC (GMD? Mindcandy?) will be using the contacts in that fashion, but anyone involved in that game - even just the players who never buy anything, are establishing a relationship with the company.

I used PXC as an example, but it couild just be that they are using PXC and the cards to test out business models. That way they have some hard data to back up theories about how some aspects of ARGs might work. From the card sales they can generate the percentage of people in a game who might buy products that are initially launched with an ARG game to back it.

AS to "why buy cards that are no good once the game ends"... look at music concerts - they sell posters, shirts, hats, etc. A poster doesn't play music, but people still buy them - to remember and commemorate the experience. It becomes a visual and tactile reminder of the experince. Is it enough revenue to pay for all expenses for the Concert? No, but it does help solidify the fan base who will then go out and buy a CD, tickets to other concerts, etc. So too the cards for PXC, they are a visual and tactile reminer of a fun experince. Players may start following the company news and should they promote other products, former players may look more favorably on them.
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A small group of thoughtful people could change the world. Indeed, it's the only thing that ever has. - Margaret Mead


PostPosted: Fri Mar 24, 2006 1:34 pm
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AngusA
Boot


Joined: 02 Jan 2006
Posts: 44
Location: London, UK

How about getting sponsorship for the live events? That way they could be bigger, more widespread and involve more players. Everything is sponsored these days so we're all used to it.

I like the idea of selling extras that enhance the core game. That could be a route that djs4000 could look at rather than a pay to play game. Even if it is initially as simple as "Play the game - buy the T shirt".

PostPosted: Sun Mar 26, 2006 6:22 am
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sago
Kilroy


Joined: 10 Jul 2006
Posts: 1
Location: UK

The big question in my mind about whether it was 'genius' or not is this: how much does the whole-ARG thing fuels the sales of the cards?

Only a tiny proportion of the people who've bought and solved cards on the site are active in any forum of the game.

Would Perplex City have worked as a new collectible card game with some extra bits of story, one big puzzle and a $200,000 top prize. Would it have worked if the Perplexian story had been used as a short backdrop to a range of other commercial ideas? Would it have worked just as well if the phenomenal personnel cost to run the zero-revenue ARG side had been put into marketing the revenue-generating cards?

If the answer is yes, then Mind Candy's business model has been terribly un-genius (other than the fact that the team have obviously enjoyed the ride)!

On the other hand, if Mind Candy hadn't been able to talk about this 'new cool ARG thing' to investors would they have raised their tranches of VC backing?

This isn't the best place to get an unbiased analysis of this question, of course, but its important.

My suspicion is that initially the momentum generated from ARG-fans sold a good chunk of the initial waves of cards, but now I'd guess from the leader-board/forum use patterns that a very small proportion of new players 'catch up' with the story and turn out to be play-drivers (just as in most other ARGs, those there near the start often drive it to the end). I'd guess that the senior Mind Candy team have got good at selling the ARG concept in a way that has been good for them to raise money.

PostPosted: Tue Jul 11, 2006 8:40 pm
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MageSteff
Pretty talky there aintcha, Talky?


Joined: 06 Jun 2003
Posts: 2716
Location: State of Denial

It could have just as easily have been "we have this cool new Card Game Puzzle. We want to generate buzz about it, how do we generate talk that sets us apart from other collectible card games that have offered prizes?

How do we gain customer loyaty so that even if they don't win the main prize, they will come back for more cards and perhaps more series of cards after the first prize is won (i.e. expanding the decks if the first planned release goes well)?

How much they took to Mind Candy of the story that might have been packaged as a static story before it became an ARG we may never know.

Even if the cards are scratched some people like to have complete collections and will buy "used" cards just to fill out the set. there are card collectors that simply will buy the cards because some aspect of the game (the prize money, the story background, the cards themselves etc.) caught their attention and the collector nature compels them to buy the cards (I still haven't figured out why some people MUST own complete sets with at least one of every card for Magic the Gathering). SO in that way they are tapping the Card collectors and not the ARG.

What the ARG does: Generate talk. Generate free press. Notice how the live events for Last Call Poker got mentioned in both local and National News outlets
SFgate

CNET

Game Zone


But these are where the ARG was not the intended product. Here the blending of the product (cards) and the ARG story mesh very, very well. But you have to ask... without the cards, would there be a story? The genius is in making the Card product blend seemlessly into the ARG and the ARG blend seemlessly into the Card product line. So far it seems to be working.
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PostPosted: Thu Jul 13, 2006 3:34 am
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