2012 is the year that 6d6 either starts making a profit (i.e. make enough for me to live-on) or dies. As part of this, starting back in December, we have been making our financial and sales data available to all. This is to demonstrate to others how difficult it can be to get an RPG company off the ground and also to crowd source advice about how we can do things better.
How Are We Doing
As I write this, it is the last day of March and that puts us exactly 25% through the year. Are we hitting our targets and on-track for making a profit?
The target, total income (i.e. what I end up with in my pocket) for the first quarter of the year was £350. My actual income for this period was £567.13 or about 65% over our target.
Digging deeper, our gross sales (the total of all our sales in Q1) was £824.71 which means we have a nominal profit margin of 68%. However there is a big difference in profit margins between digital and physical sales. Digital sales grossed £659.48 and incurred costs of just £152.10 (mostly payments to the writers). Physical sales were just £165.22 but had costs of £105.47. Clearly it will be much harder to hit my income targets based from physical sales than digital sales.
Things Can Only Get Harder
The income targets for the first few months of 2012 were set pitifully low. They are higher than the level of income I was earning prior to 2012 but are nowhere near the level I need. As the months pass, the target rises rapidly. For example, the target for June alone (£700) is more the targets for January to April combined (£600).
Clearly sales need to rise rapidly and tomorrow’s post will look at how we can achieve this goal.