EN World GameStore Closing

[Mark CMG]

The data given to EVERY RPGNow publisher (but, sadly and unsurprisingly, ignored by most of them) is that over 50% of sales are driven by direct-link publisher marketing efforts, rather than browsing.

I always wonder why that is brought up since it would seem to be an argument for selling primarily through the publisher website.

I have every reason to believe that they will be spending resources on market expansion

I look forward to seeing where the rate increase is spent.

 

[GMSkarka]

I always wonder why that is brought up since it would seem to be an argument for selling primarily through the publisher website.

Not really, once you combine it with the convience factor -- customers prefer to purchase from a single retailer, when they have the option to do so.

Yes, the majority of our sales come from my direct-link marketing, but a quick glance at my vendor tools also show that those direct-link orders often are shared with (for example) Ronin Arts products, and vice-versa. You see a lot of people put stuff in their shopping cart or wish list from a direct-link, and then purchase once they've got 3 or 4 products ready to go.

 

[Bardsandsages]

And if there are so many publisher who are happy with this, how come we're not hearing from them? Why are they talking about how it's such a good thing where no one else can see? I'm sure some of them don't know about this thread, but come on... surely someone would have taken notice by now, either by checking it himself, or having someone else cross-post in that private forum. I know if I thought it were a good thing, I'd come over here and try to allay some fears, among my fellow publishers and the fans alike.

I suppose I don't count? I've posted in three different threads my opinions on the matter, to be told that I am misinformed about my own company's chances.

I agree with Gareth (whether he is an RPGNOW employee or not). James has never given me any indication that he intends to "screw" the publishers. In fact, he has always gone out of his way to find ways to help the publishers. He has negotiated special advertising rates in magazines. He instigated the distribution program to get some of our books in actual brick and mortar stores. He pushes our products at conventions. In short, this is a person who is actively interesting in promoting independent publishers and INCREASING the PDF market. I have every reason to trust his judgement.

 

[Mark CMG]

Not really, once you combine it with the convience factor -- customers prefer to purchase from a single retailer, when they have the option to do so.

Well, I hesitate to open this line of discussion, considering the many variables, but online ordering by any means is obviously fairly simple and convenient. I will certainly concede that a one-click option has some immediacy advanatges over having to pull out a credit card with each purchase. I think just having a Paypal account remedies that, though.

Yes, the majority of our sales come from my direct-link marketing, but a quick glance at my vendor tools also show that those direct-link orders often are shared with (for example) Ronin Arts products, and vice-versa. You see a lot of people put stuff in their shopping cart or wish list from a direct-link, and then purchase once they've got 3 or 4 products ready to go.

Again, I wonder about the impetus to bring up certain things as what you seem to be suggesting is that it's the big PDF publishers who attract most of the customers by their direct linking and that it might be best for them, considering they are also the ones being hit the hardest by the increase in rates, to form their own conglomerate and shrug off the non-exclusivity loss in favor of the additional revenues they can generate in a storefront where they set thier own rate collectively.

 

[seasong]

We have not been bought (or merged) with RPGNow, DriveThruRPG, or OBS. We're looking into what happened.

Well, that last sentence certainly sounded ominous.

I apologize - no ominous overtones were intended. We've generally had a cordial relationship with many of those folks. We've got an official word up on our front page now. It doesn't cover our plans to rule the world, but it's otherwise as complete as we can make it.

And that second paragraph, we mean it. We do wish them the best.

I fully plan to capitalize on their new rates (I am, as I've mentioned elsewhere, a soulless corporate drone), but there's no one at RPGNow, DriveThru RPG, EN Game Store, or the newly formed OneBookShelf that I would wish any ill against.

 

[Mark CMG]

Thanks for the info, seasong! Good to see you around, too. It's been a while.

 

[JohnNephew]

The data given to EVERY RPGNow publisher (but, sadly and unsurprisingly, ignored by most of them) is that over 50% of sales are driven by direct-link publisher marketing efforts, rather than browsing.

For exactly this reason, publishers should consider whether they should aim that direct-link marketing at a PDF vendor who gives them a bigger cut -- either a web store of their own, or another alternative like e23, where you get 23% more revenue for each copy sold. For some publishers it may make sense to drop OBS entirely -- even losing some sales may be more than made up for if all of the remaining sales go through a higher-margin channel. (I'm idly curious whether some of the top-volume RPGNow vendors would keep most of their volume if they didn't sell through OBS -- is it their brand recognition and reputation for quality that gets them sales, or primarily just the venue they are sold through?)

Also, publishers should think about whether an exclusive benefits them in the long run, or keeps them entirely at the mercy of the goodwill of the new company. Without a viable competitor, publishers can expect "ya may as well, ya got no choice" to become a familiar phrase.

I take them at their word. I've worked with James for 4 years, and he's never steered me wrong. I have great respect for what Steve has accomplished as well. I have every reason to believe that they will be spending resources on market expansion -- which helps all of us.

I am sure it is their good faith intention right now. But the reality is that they are taking control of the promotional use of those funds, and they are taking it away from manufacturers, who could have spent it on market expansion if they so wished, for their own benefit rather than the benefit of other companies. OBS gets to decide where and how to spend those funds, and which products and lines to spend them on. I didn't see anything in the fine print about how the extra money would be dedicated to the specific manufacturers who generated it -- they could have structured it so that the difference between RPGNow and DTRPG rates was specifically dedicated to marketing efforts on behalf of the publisher whose products generated it, like a co-op credit allowance. There's a vague promise to grow the market, but nothing concrete -- again, the arrangement could have been made on the basis of specific performance benchmarks to earn the higher rates (e.g., give publishers the current rate on the sales next year equal to this year's sales, and charge the higher rate on the increased sales, by way of proving the value of the merger).

These things would have taken more effort to plan and implement, but they would have changed their basic approach from a dictation of terms to an offer of mutual benefit. Right now the only definite benefit is to OBS, which will make a lot more money than the two companies did separately, even if sales are stagnant.

OBS is now a bigger corporation, with more shareholders. James doesn't have a controlling interest any longer (nor does Steve), and there's nothing to prevent them from selling some or all shares to someone else in the future, who may decide that the most profitable course is just to pocket the extra money rather than risk it on advertising and marketing schemes. Agreements and business plans should not be built on personal trust for someone today, but a structure that will still work when parties with different motivations and personalities succeed to the respective roles in the future.

 

[seasong]

Thanks for the info, seasong! Good to see you around, too. It's been a while.

Hey, someone remembers me!

I still read the forums here - posting just takes more time, so I tend to lurk all the time.

 

[Morrus]

For exactly this reason, publishers should consider whether they should aim that direct-link marketing at a PDF vendor who gives them a bigger cut.

Coupling that with Gareth's statement that 50% of sales are from direct marketing, my experience is that a lower commisison rate is not actually an incentive to PDF publishers - with a few exceptions. I don't foresee that changing.

 

[Umbran]

I am sure it is their good faith intention right now. But the reality is that they are taking control of the promotional use of those funds, and they are taking it away from manufacturers, who could have spent it on market expansion if they so wished, for their own benefit rather than the benefit of other companies.

True. However, well-considered collective action can have greter impact than uncoordinated individual actions. If that weren't the case, you wouldn't need to use a vendor at all.

Now, it'd be even better if they gave publishers a more detailed plan, but at least they did make some attempt to address the concern before folks asked the question.