RPGNow and the competition . . .

[philreed]

Competition is a good thing. If things went as I wanted, there would be two or three sites out there similar to RPGNow operating at the same fees and providing similar services.

Sadly, this isn't so.

I have been recently approached by DriveThruRPG about a non-exclusive arrangement to sell Ronin Arts PDFs of their site.

"Non-exclusive sounds good," I thought to myself. "This is worth investigating."

Unfortunately, there are two points of going with DTRPG that is leading me to _not_ take their offer.

1. DRM. All PDFs sold through DTRPG are -- and will be -- DRM. This isn't to say that this will never change but it's how it is now. I personally don't like DRM and do not wish to support it.

2. Cost. DTRPG wants a much higher percentage than RPGNow and I honestly can't tell what they're offering to make this percentage worth the money. And for me, this adds up. For example, if we were paying RPGNow the percentage DTRP asks for it would mean a loss of over $250 for this month alone. And there's no guarantee I'll make that money back over at DTRPG. If there was some sort of guarantee that I would, in the end, be making more money then I'd jump at the chance to signup with them. e23, the Steve Jackson Games PDF site, gave me the exact same deal as RPGNow so I took it. When their site is up Ronin Arts PDFs will be selling there.

"So," some of you are asking, "Why not go with DTRPG anyway? It's extra money!"

Maybe it is, but at what cost? Do we really want to encourage more of these sites to pop up charging high percentages? Do we want to encourage RPGNow to increase their percentage?

I say no. Hell, no. I want more PDF sites out there (hell, Ronin Arts has one now) but I don't want them to be charging, what I feel, is too much for too little. And I don't want them to come in and disrupt the existing PDF industry. I owe a lot to James for RPGNow. Without his site Ronin Arts would not be where it is today -- I would not be where I'm at today -- and I feel it's my job to do what I can to help not only my own growth but the growth of RPGNow and the PDF industry overall.

The minute a new PDF site approaches me with a deal comparable to RPGNow I'll consider it. But I won't jump at a deal that has the potential to inflict harm upon the PDF publishers.

And if RPGNow raises their rates because several publishers take less than ideal offers? I'll decide what to do then. Who knows, maybe by posting this message I've done myself and my company future harm. But it's important to me and -- I think -- it should be important to you.

I'm calling on ALL of the PDF publishers to stick with RPGNow. Do what you must for your personal business but please think of what your actions could do to the PDF industry.

 

[Bagpuss]

RPGNow has competition?

 

[philreed]

RPGNow has competition?

Yes.

 

[Bloodstone Press]

The minute a new PDF site approaches me with a deal comparable to RPGNow I'll consider it. But I won't jump at a deal that has the potential to inflict harm upon the PDF publishers.

Amen.

I've been thinking about starting a discussion about this since I got that message from James. I'm glad you went ahead and said this. Let me add the following:

As many of you know I am working on a collection of short stories. When this is finished, I'll be selling it through RPGnow. I will also sell it through some other sites that distribute e-books such as Booklocker and e-bookmall. however, since those sites charge more, I'll be charging more as well. In fact my advertisements will read something like:

Buy it now from E-book Mall for $7
Or
Buy it now from RPGNow for $5.

My purpose in this is to drive customers and other publishers to RPGnow and to force other distributors to reduce their commission rates. Of course, I can't do that all by myself. It will take a group effort and a lot of people doing it, but it would work, I think.

We can do the same thing with other RPG distributors. If you want to sell you books on SV Games or DTRPG, go ahead, but raise your prices to the point that you make just as much off of those sales as you do off of RPGnow sales. Pass that cost straight to the customer and tell them about it.

The consumers will vote with their dollars. And the competition will lose sales until they reduce their commission rates.

Otherwise, if you sell your books at DTRPG for the same retail price as RPGnow, you are only legitimizing a 50% increase in your sales commission.

In case I'm not clear enough I'll give an example:
A book sells for $5 on RPGnow. You make 3.75 off it (25% commission). In order to make $3.75 off each sale at DTRPG, you'll have to raise your sales price to $7.50. If anyone complains, tell them exactly why you are doing that.

Obviously, if DTRPG won't let you set your prices like that, then don't do business with them at all.

I feel very strongly about this, since I would like on-line publishing to become my full time career. And I don't want to be paying anyone 50% of my revenue for distribution. James and RPGnow are a Godsend and we should be thankful. Furthermore, they offer leverage, which we can use to set industry standards (which are not yet set in stone).

 

[DaveStebbins]

I'm also a very big fan of RPGNow. On the other hand, I'm really looking forward to browsing through e23 when it opens up. Not to hijack the thread or anything, but are there any rumors when it will open?


Since my ex-wife got re-married, my gaming budget is big enough to support the competition AND give even more business to RPGNow. If only I had the time to read what I already have!

 

[jaerdaph]

See my sig below!

 

[Fate Lawson]

So let me get this straight. DTRPG wants to take a 50% margin on PDF sales?


Are they nuts?

That's a higher margin than most FLGS's can hope to get on an actual print book.

And those PDF's have a limited marketability because of DRM.

Hubris, sheer hubris.

 

[Bloodstone Press]

So let me get this straight. DTRPG wants to take a 50% margin on PDF sales?

I don't know if they want 50%. Phil just said

DTRPG wants a much higher percentage than RPGNow and...

I know other distributors such as SV Games and E-book mall want 50%. I used '50%" to help illustrate my example, and because I bet its pretty close to the mark, but it isn't a sure thing.

 

[scourger]

Thanks for the discussion. THIS consumer will definitely take it all into consideration. I don't know enough about computers to know how DRM works, but my thought is that it is like buying a book that I can't take out of the store and can't photocopy. Why would I want THAT? I've looked at DTRPG, and I love seeing some of the old books over there (like V&V), but I haven't bought anything there and probably will not do so. The stuff I've gotten at RPG now has been great, so I hope they lead this sector of the industry.

 

[The Sigil]

"So," some of you are asking, "Why not go with DTRPG anyway? It's extra money!"

Maybe it is, but at what cost? Do we really want to encourage more of these sites to pop up charging high percentages? Do we want to encourage RPGNow to increase their percentage?

I say no. Hell, no. I want more PDF sites out there (hell, Ronin Arts has one now) but I don't want them to be charging, what I feel, is too much for too little. And I don't want them to come in and disrupt the existing PDF industry. I owe a lot to James for RPGNow. Without his site Ronin Arts would not be where it is today -- I would not be where I'm at today -- and I feel it's my job to do what I can to help not only my own growth but the growth of RPGNow and the PDF industry overall.
...
And if RPGNow raises their rates because several publishers take less than ideal offers? I'll decide what to do then. Who knows, maybe by posting this message I've done myself and my company future harm. But it's important to me and -- I think -- it should be important to you.

I'm calling on ALL of the PDF publishers to stick with RPGNow. Do what you must for your personal business but please think of what your actions could do to the PDF industry.

*applauds* I love you, Phil.

And in case anyone cares... this is me as a CUSTOMER...

I have spent at least $2253.73 on non-DRM PDF purchases (I say at least because I bought a good number of WotC PDFs from their online store before they closed it down that I'm sure I didn't account for here). Yes, that's in excess of two THOUSAND dollars (I was shocked when I added it all up myself) over a period of just over two years.

I have spent $0 on DRM PDF purchases. DRM'ed PDFs will not see ANY of my money, ever. Period. End of discussion.

Anyone who wants a piece of the $1,000+ per year revenue stream I provide as a customer had darn well better do it on my terms. When I'm putting out that kind of money, I want good service. And my terms include zero DRM, because not only is that poor service, in my mind it's "ANTI-service" - you're trying to hijack my own computer (another $1000+ investment) and turn it against me so that I can play on YOUR terms. If I'm the one financing the computer and the products, I'm going to do it on my terms or not at all. And since RPG products are luxury items, believe you me, I have no problems at all with going "not at all."

And since my way of doing business as a publisher is to do things the way I like to receive them as a consumer (the "golden rule") I won't be supporting DRM either.

Consider this a stand of solidarity with you, Phil. I haven't been approached by DTRPG... but if I had been, I would have done the same thing. If I am approached by them in the future, and their terms remain unchanged, I will simply tell them I don't need their "service." Because I don't.

--The Sigil