Costs of a kickstarter project (transparency)

Sacrosanct

Legend
Frequently I get questions about how much it costs to run a kickstarter for a larger project like I did with Twilight Fables. For context, Twilight Fables is of a quality I think is up there with official books and bigger 3PP like Morrus, Kobold Press, etc even though I'm a very small fry.

I've been a big proponent of transparency as the owner of Izegrim Creations. If for no other reason, I hope that others can learn from me, the mistakes I made, and things that went well. There are many people out there who are creators and don't know what costs are for a large project that would rival one of the big boys in quality. Most of you probably don't care all that much about this, but some of you may find this interesting, especially if you're a creator yourself. And to show that no, us KS creators don't make a ton of money on the projects ;) I'm sure someone like Morrus will look at these numbers and probably think "You did something seriously wrong to get those figures." ;)


Twilight Fables was the biggest project I've done, and I really reached high for it, as a small-time indie publisher. To walk my talk, here is the transparency for the project now that costs are finalized.


Ad costs: $8,006.50

Commissions (art): $23,354.13 (this could easily be double if I hired the quantity of exclusive art that Morrus or KP have used for similar books)

Materials (including book printing and fulfillment): $27,966.60

Editing: $4000

Total Costs: $63,327.23


Net Kickstarter Proceeds: $49,495.14

Sales since KS ended and files went for public sale (9/1/2022): $2,511

Excess Inventory Value (to be sold directly and at conventions): $13,750

Total Profit/Asset: $65,756.14


After Action Evaluation:

  • I would not spend as much on ads. Didn't seem to have a good RoI. I can definitely do better in this arena.
  • The cost per book would have dropped significantly if I was able to double print backers. I just barely made the threshold to make it worth it as opposed to Print on Demand only. If I had the extra print backers, the price per book would have went from $26 each to $18 each, which of course would translate into an extra $8 per book in profit. It truly is a numbers game.

TL, DR version: I knew going in that I'd be lucky to break even because I knew my customer base is smaller than Morrus, Kobold Press, etc. But I really wanted to complete this project. The biggest take away here is that you really want to hit 2000 backers if you want to make money on a project like this (full color, 300ish pages, professional print quality), especially if you hire a writer (not factored in the costs above, because I wrote it myself, but at 10 cents a word, it would be an additional $20,000 or so!) It's all about quantity, because with every 500 or so backers, the physical print cost goes down, and with every single backer, the cost per book in total goes down.

Also of note is the importance of PDFs. Those have zero production and shipping costs, so the actual profit margin may be higher than the book itself. Especially if you have 2000 or fewer print backers.

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MGibster

Legend
I've been a big proponent of transparency as the owner of Izegrim Creations. If for no other reason, I hope that others can learn from me, the mistakes I made, and things that went well.
I'm of two minds about this. As a customer, I don't really care about transparency. Your business is your business, and I don't have any reason to know how much you spend and how much you're profiting. I'm going to buy your product based on the perceived value to me rather than how it affects you. But, as a human being who likes learning new things, I appreciate you sharing this with us. It's neat to see how the sausage is made.
 

GreyLord

Legend
TL, DR version: I knew going in that I'd be lucky to break even because I knew my customer base is smaller than Morrus, Kobold Press, etc. But I really wanted to complete this project. The biggest take away here is that you really want to hit 2000 backers if you want to make money on a project like this (full color, 300ish pages, professional print quality), especially if you hire a writer (not factored in the costs above, because I wrote it myself, but at 10 cents a word, it would be an additional $20,000 or so!) It's all about quantity, because with every 500 or so backers, the physical print cost goes down, and with every single backer, the cost per book in total goes down.

Also of note is the importance of PDFs. Those have zero production and shipping costs, so the actual profit margin may be higher than the book itself. Especially if you have 2000 or fewer print backers.

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So, one thing I would add that would cost a LOT MORE upfront, but in the long end save you money is buying your own printing press which can sew the bindings.

VERY expensive upfront.

However, once you get it paid off, you no longer have to pay a printer. You buy the paper, the covers, the thread and the glue and go to town (a much cheaper cost at that point).

Of course, you'd probably have to plan 20 various printing projects at your rates to eventually make up for it and start turning a profit, but if you plan on doing a LOT of kickstarters and printings...couldn't hurt.
 

Crusadius

Adventurer
So, one thing I would add that would cost a LOT MORE upfront, but in the long end save you money is buying your own printing press which can sew the bindings.
I believe Mongoose Publishing did this and if I recall correctly one of their first printings was CthulhuTech. One complaint about the binding was that the covers bent so there is a learning curve which very small publishers may have difficulty with.

I think they sold it in the end as recovering costs was difficult and required them to print more than just their own games, and perhaps requiring at least one staff dedicated to printing (and I'm not even getting into cost of maintenance and repairs).
 

aia_2

Custom title
Please don't misunderstand my words but i have never understood the KS logic: it is clear to me that you go with it in order to maximize the sale volumes... it is clear also that with extras you reduce your earnings (incomes will grow but costs will grow even more)...
Is there anhthing i miss? Is it a fact of marketing: if you don't go with KS you won't succeed or you can't offer the dragonscale leather bound exclusive book?
This is exetremely fascinating to my eyes...
 

Crusadius

Adventurer
Please don't misunderstand my words but i have never understood the KS logic: it is clear to me that you go with it in order to maximize the sale volumes... it is clear also that with extras you reduce your earnings (incomes will grow but costs will grow even more)...
Is there anhthing i miss? Is it a fact of marketing: if you don't go with KS you won't succeed or you can't offer the dragonscale leather bound exclusive book?
This is exetremely fascinating to my eyes...
I think the primary reason to go with kickstarter is that you try to guarantee revenue that, at minimum, will cover the costs of getting the product into the customer's hands. You aren't maximising sales volumes, but can attempt to guarantee a minimum volume that will keep the costs low enough that you can at least break even.
 

Please don't misunderstand my words but i have never understood the KS logic: it is clear to me that you go with it in order to maximize the sale volumes... it is clear also that with extras you reduce your earnings (incomes will grow but costs will grow even more)...
Is there anhthing i miss? Is it a fact of marketing: if you don't go with KS you won't succeed or you can't offer the dragonscale leather bound exclusive book?
This is exetremely fascinating to my eyes...
I imagine that the average person will have better luck going through Kickstarter to get a thing published. Publishers and distributors are a completely separate maze of making stuff. Navigating that process is a whole other can of worms. And the most important thing is developing your own audience.
 

Committed Hero

Adventurer
Please don't misunderstand my words but i have never understood the KS logic: it is clear to me that you go with it in order to maximize the sale volumes... it is clear also that with extras you reduce your earnings (incomes will grow but costs will grow even more)...
Is there anhthing i miss? Is it a fact of marketing: if you don't go with KS you won't succeed or you can't offer the dragonscale leather bound exclusive book?
This is exetremely fascinating to my eyes...

Ideally a Kickstarter campaign funds the things that need to be paid for after the game is written. Even without a line item for the author, there is definitely a cost involved in terms of time and expertise in that respect.

I'd be curious to know how much time was spent promoting it in terms of social media, too, if that's not part of the ad buy. As well as any playtesting conducted by either the designer or third parties.
 

Sacrosanct

Legend
I think the primary reason to go with kickstarter is that you try to guarantee revenue that, at minimum, will cover the costs of getting the product into the customer's hands. You aren't maximising sales volumes, but can attempt to guarantee a minimum volume that will keep the costs low enough that you can at least break even.
Yeah, the biggest thing with KS is you know your customer count before you commit to any print costs (in many cases, before any costs, but I personally don't do that, because that road leads to unfulfilled projects. Before I launch, my project is pretty much done so I can guarantee not only delivery, but a quick delivery at that.)

But I use KS for another reason as well. Quite frankly, it's the best return on investment for ad coverage, even though it's not an ad platform itself. They take a small cut, but it seems like the exposure on the KS platform measured against that cost is much greater than that of ads on FB, Twitter, etc.
 

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