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Message: <blockquote data-quote="talien" data-source="post: 8041702" data-attributes="member: 3285">We previously discussed <a href="https://www.enworld.org/threads/making-it-in-the-rpg-industry.673231/" target="_blank">the Thousand Fan Theory (TFT)</a> and what it takes to support a full-time game designer's salary by reaching 1,000 fans contributing $100 a year. It’s a daunting strategy because it takes years to build up to a thousand fans willing to pay that much. But what if you need less than $100,000 to live on?[ATTACH=full]123957[/ATTACH] <a href="https://pixabay.com/illustrations/fantasy-fairytale-elve-old-man-owl-1481583/" target="_blank">Picture courtesy of Pixabay.</a><h3>Let’s Talk About Retirement</h3>With rising medical costs, the uncertain future of game developers can have a deleterious effect on their long-term finances. <a href="https://www.enworld.org/threads/rpgs-have-a-health-problem.667660/" target="_blank">The popularity of GoFundMe campaigns for medical expenses has made that clear</a>. But these situations are new—the tabletop RPG industry is in its infancy compared to other tabletop gaming platforms—and it’s a useful exercise for game designers to consider their long-term future in the industry, particularly as the population agesOne of the challenges of the TFT is that it takes time to build an audience. For most middle-aged gamers, the opportunity to create a sustainable platform using TFT has already passed. But it might not entirely be a lost cause, because the TFT can also be beneficial for designers who have time on their side in retirement.<h3>The Three Pillars of Retirement</h3>Retirement varies by country and its benefits. Using the U.S. as an example, retirement is supported by three pillars of income: pensions, savings, and Social Security.<ul> <li data-xf-list-type="ul">Defined benefit plans (like pensions) are increasingly rare these days as companies continually cut back. In some countries, a government job may still contribute a pension; being part of a union can mean access to one. But for most workers these are rare, and of course game designers would need to have a second job to create the pension in the first place.</li> <li data-xf-list-type="ul">Defined contribution plans like the 401(k) in the U.S., are increasingly the retirement benefit of choice for employers, but it requires an employee to contribute (sometimes with the company matching the contribution). This is essentially a tax on your existing income for the future, which pushes the TFT higher.</li> <li data-xf-list-type="ul">Social Security benefits provided by the U.S. government pay out a range determined by the age you declare retirement. Anyone born after 1960 will only get 70% of the benefit if they retire before age 67 (they can retire as early as 62). You can collect retirement at a later age (as late as 70), at which point you receive 124% of the benefits. This is a plus on the game designer’s side, as long as their minds are sharp and they have access to a computer, their work horizon is much longer, and can therefore officially retire (as a government term) much later. If we use professional writers as a template, <a href="https://www.newyorker.com/books/page-turner/do-writers-really-retire" target="_blank">their professional has no need for retirement</a>.</li> </ul>Of course, game designers will want to declare retirement so they get access to any benefits their government provides, but that doesn’t stop them from developing games. By officially retiring at 70, <a href="https://www.nasi.org/learn/socialsecurity/retirement-age" target="_blank">the maximum benefit a game designer could receive is $3,538 a month</a> from Social Security. This matters a lot, because in the TFT, it reduces the number of fans you need considerably.<h3>Reduced Income, Reduced Expenses</h3>If a game designer has a day job, they may be forced to retire from it for a variety of circumstances. Depending on the job, they may not physically be able to continue, or the job might offer them early retirement. Worse, shifts in the economy may force them out. The TFT is largely immune to these changes since you’re your own boss, but creating a pool of savings is difficult unless you can build a buffer beyond the $100,000/year.Conversely, retired game designers will hopefully have reduced expenses in retirement. The recommended guidance is that your expenses will be considerably lower, <a href="https://www.businessinsider.com/personal-finance/how-much-do-i-need-to-retire" target="_blank">as much as 70%</a>:Like Social Security, this changes the equation. Assuming you downsize, you’ll need just $70,000.<h3>Adding it All Up</h3>If a “retired” game designer’s income goal is $70,000, the TFT requires 100 fans to contribute just $70 per month, or just 70 fans to contribute $100 per month. And unlike the scenario where a middle-aged designer has no time to catch up, a $70,000/year model is much more feasible because the game designer has time to get there; maybe 30 years depending on their age, if not more.With the revised $70,000 goal, the TFT equation changes. On Patreon, you would need to make $78,000 per year, which equates to 100 patrons paying $65/month. On DriveThruRPG, you would need to make $108,000 per year, which equates to 90 products selling 10 copies at $10/month. On YouTube you would need 1 million views per month or around 60,000 highly engaged subscribers. For Kickstarter you would need to make $85,000 across all your Kickstarters, or 10 successful Kickstarters achieving a goal of $8,500 each (which incidentally is in the sweet spot for successful Kickstarters).All of these theoretical calculations don’t consider spouses, adult children who don’t move out, loans that aren’t repaid, residencies that can’t be sold or downsized, and health problems. There are many variables that can potentially damage your financial retirement future.However, the Internet’s long tail means that <a href="https://www.bergsland.org/2013/12/recentposts/one-main-benefit-to-self-publishing-and-ebooks-unlimited-shelf-life/" target="_blank">there is no shelf life</a>, no distributor who will take away your product or remove it. As long as you continue to cultivate a fan base and keep putting out product, you will keep selling, including content you wrote years before. It adds up over time.The reality is that a game designer who depends on the TFT to survive will never retire. But for the many of us who are part time designers, it may well constitute an important part of our retirement income. As game developers get older, it’s an important question to ask: what will you do with the free time you have left?</blockquote>

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