Hrm, I'm going to publish a book/product that's going to take about 100 man hours to create (at a very, very low minimum). That's an investment of about 5000 dollars right there just for my time. Never minding printing costs, distribution, advertising, whatnot.
Hahahahahaha!!!
100 manhours of freelance game design does NOT earn anyone $5000.
Heck, WotC, arguable the best place for a RPG game designer to work, only pays
$1300/week. And Paizo pays half that.
If you're starting out in the industry, do not even expect to make money.
I mean, I just backed Primeval Thule for 5e. This is a book that's an update of a product that's been done for Pathfinder and 4e already - so, most of it is already written. All that needed to be done was fix stat blocks and maybe do some shifting around in the adventures.
They asked for 15 000 dollars for that product.
So, yeah, dropping 700 dollars is a pretty small investment compared to what I'm going to invest in my product. And, note, once I've done it once, I hopefully won't need to talk to a lawyer again.
$15,000 to pay for books is very doable for Sasquatch Games. They're also known designers with a reputation in the industry who wanted to make a professional high quality book. They can get $15k. Heck, even Necromancer Games can reliably get $15,00, and Goodman Games pulled $25k for 5e adventures.
But how much do you think I'd get if I started a Kickstarter to do so? If I wanted to start publishing 5e, do you think I could hit $15,000? Or even $5,000? Heck, raising $500 might be a stretch, and I'm somewhat known here on ENWorld, the WotC community, Twitter, and could probably swing a couple podcast appearances to plug.
That's the catch. The cost is incredibly prohibitive for new companies interested in publishing. They can't just jump right in, earn a reputation, get a few products under their belt while gaining experience on making a high quality product. Instead, they have to go for a Kickstarter or sink money in a HUGE gamble.
Heck, I've
published an RPG-related book. I don't even want to think about how many hours I spent writing, re-writing, editing, and planning that book. If I'd sunk $500 for legal fees before releasing that book... I'd still be in the hole over $200.
This is also assuming any profit is sought. The OGL also works for blogs, forums, e-zines, fan publications, and the like. Who the heck wants to spend a thousand dollars before hosting their campaign's website or their homebrew world on a free wordpres blog?