RPG Evolution: RPGs Have a Health Problem

As the game industry ages, our iconic game designers are aging with it. Increasingly, they are turning to crowdfunding campaigns to fund their medical costs. Although gaming hasn't always been a lucrative field for designers, it's clear that even our most experienced designers aren't making enough to manage a medical crisis. Can we do anything about it?

The Scope of the Problem​

For some designers, yearly deductibles have crept up to the $10,000 range; with game designers often working as freelancers without insurance, costs are even higher. Incidental expenses, like wound care supplies, specialized diets, and transportation all add to these costs. To address these expenses, GoFundMe (and it is usually GoFundMe, which accounts for 1 in 3 crowdfunding campaigns for medical costs) has become the crowdfunding platform of choice, with over 250,000 medical campaigns raising over $650 million each year.

Is it possible to make a living working on games? We have some notable data points.

It's Not for Everyone​

Fred Hicks shares his perspective:

Through a combination of: Running Evil Hat (I made $0/month for several years; then we got a little success, enough to justify $450/month for a while; I’ve gotten to increase that since, but I am pretty sure I’m still not quite rating McDonald’s wages, and unless Evil Hat can improve its product output over the next few years, I’m not sure the increase can be sustained; behold part of my motive to grow the company! I should note I don’t charge the company anything else for any writing, development, or layout work I do beyond this monthly draw.) Running Jim Butcher’s online presence (the site has amazon referrals, other referral programs, the occasional ad revenue, cafe press gear, all of which funnels to me to pay the website costs and then pay myself the remainder for doing the work of creating & running all that over the past ten-plus years) Freelance layout work (which is bursty, unpredictable, and can sometimes wind up with late or very late or never-happened payment if you’re not careful)… I am just in the last year or two finally at the point where I’m making about what I made when I started in the internet industry back in 1996. Only without any benefits (save those that I get as a spouse), which is a lot like saying that I am making 30+% less than what I was making in 1996.

Louis Porter Jr. responded to Fred's post:

But there is another side to this. The side of what is "making a living"? I live is South Florida where I own a house, two cars, have a wife, one year old son and mother-in-law all living in the same house. My wife and I do well financially (She's a therapist and I am a graphic design / web designer) and LPJ Design gives me extra money to do a few fun things. But can I live off of it? No. But do I work it like a 40 hours a week job where I get full medical, weekly paycheck, 401k retirement planning, free use of internet, copier fax machine and roughly four and a half weeks off and 2 weeks of sick time? No. But I do know if I worked the LPJ Design business as well and hard as I work my "real" job the out come would be different.

Louis mentions the 1,000 fans theory, and given the success of crowdfunding in role-playing games it seems there's some merit.

The 1,000 Fans Theory​

The 1,000 Fans Theory espouses the belief that creators don't need to have a large number of fans, they just need a highly-engaged base that will support them:

Here’s how the math works. You need to meet two criteria. First, you have to create enough each year that you can earn, on average, $100 profit from each true fan. That is easier to do in some arts and businesses than others, but it is a good creative challenge in every area because it is always easier and better to give your existing customers more, than it is to find new fans. Second, you must have a direct relationship with your fans. That is, they must pay you directly. You get to keep all of their support, unlike the small percent of their fees you might get from a music label, publisher, studio, retailer, or other intermediate.

If each fan provided $100 per year, that would amount to a $100,000 year income. It's worth noting that a percentage of this number also covers things like insurance and medical bills. The total number of fans can be adjusted up or down according to the individual's needs and goals -- those creatives who live in areas where they can get by on $50,000 need only 500 fans, while those who have fans with less disposable income may need double that amount. Where do RPG fans fit in this model?

There are two constraints that working against game developers hoping to make a living using this model. For one, tabletop RPG fans are not nearly as large a market as video games or other creative outlets. For another, gamers are accustomed to lower price points than other entertainment, including the aforementioned video games.

As the market continues to expand, we're seeing movement on both of these factors that may give future designers hope. The market is growing -- Hasbro CEO Brian Goldner told Mad Money that "people are more into Dungeons & Dragons today than ever before. In fact it's enjoying its best year ever, it's been the last couple of years where it's grown. People are reengaged with that brand because it's a face-to-face game, it's immersive, and it's a game that people really enjoy playing with one another. We have more new users coming on board -- double digit, new user growth."

Along with that growth is a fan base willing to spend more, as Andrew addressed in his article, "How Expensive is Too Expensive?" This in turn means creatives can get paid more. Russ has written an excellent reference piece on EN World that every writer should read. It's worth noting that when it comes to paying fairly, Russ is a leader in the industry -- and I speak from personal experience working for him.

A third factor to consider is that the barrier to entry into role-playing games has dropped considerably. Thanks to digital platforms like DriveThruRPG and the DMs Guild, creators can make and sell games at very little cost. By keeping their expenses as low as possible, game designers can net more profit from their games. There are also more platforms to allow fans to directly contribute to creators, like Patreon.

Adding this all up, the 1,000 fan theory seems more achievable for game designers than ever before. But until the market expands enough to support more creatives in the field, economic conditions will continue to push everyone in the tabletop RPG field to test the 1,000 fan theory in the worst way...when they have a medical crisis.

 

[GrahamWills]

There are two different issues being conflated in this thread, one is the state of health care in the US. it was stated that it isn’t really fundamentally much different than other OECD countries. That is simply wrong. It is fundamentally different , and worse, in many well known ways. A simple internet search will let you easily discover that it:

• It wastes more money than single payer systems with up to eight times as much spent on administrative costs
• it is less effective than other countries by a lot; it takes much more money in the US to improve someone’s health by the same amount

But this thread is not about how appallingly bad the US health system is. That is a known bad thing. It’s about how the way it is used makes it hard for RPG creators or other contact workers to survive.

 

[lowkey13]

*Deleted by user*

 

[Xenonnonex]

There are two different issues being conflated in this thread, one is the state of health care in the US. it was stated that it isn’t really fundamentally much different than other OECD countries. That is simply wrong. It is fundamentally different , and worse, in many well known ways. A simple internet search will let you easily discover that it:

• It wastes more money than single payer systems with up to eight times as much spent on administrative costs
• it is less effective than other countries by a lot; it takes much more money in the US to improve someone’s health by the same amount

But this thread is not about how appallingly bad the US health system is. That is a known bad thing. It’s about how the way it is used makes it hard for RPG creators or other contact workers to survive.

It seems some people are willfully and knowingly spreading misinformation and lies about the state of US healthcare. In their minds someway somehow they do not think the US healthcare system is appallingly bad.

 

[drl2]

I struggle to understand how any company outside the WotC/GW/Paizo triumvirate can possibly make enough money to offer reasonable pay to full-time employees, let alone afford US healthcare coverage. Sure., the market has grown a lot and become more mainstream, but it seems like the growth is mainly from the big 3... with hundreds of smaller companies competing over the scraps.

How many people outside those organizations are really able to make a decent living as game publishers? I generally assume most of the small-time publishers do it as a side gig - passionate hobbyists trying to make a little extra to help support their hobbies.

 

[Umbran]

Perhaps more pertinently, most of these trades fall into:

• shelter and infrastructure creation
• keeping people alive and bringing new ones into the world
• helping deal with the law (or with the tax man)

The first two seem like foundational blocks in the pyramid of needs. Art is more up the pyramid and its urgent day to day survival aspect is almost non-existent. Societies need it, but they don't tend to need it with the urgency of doctors or builders.

That argument makes a lot of sense... if you live in a world of actual scarcity. If a society has problems meeting the day-to-day requirements of its members, you have to prioritize, and the things that you need are higher value than the nice-to-haves.

But... there's a very big question as to whether that's the case any more. The US has a gross domestic product, per capita, of something like $80K per year. The economy, on the whole, has more than enough wealth to meet the basic needs of all the individuals within it. In terms of what we can and do produce, our economy is post-scarcity. Meeting the needs of the individuals should not be an issue.

But, of course, as a practical matter, we obviously do have an issue meeting the needs of the individuals. We are, in fact, so broadly incapable at meeting the needs of all the members that the fault of this cannot reasonably be laid on those whose needs are not met. We are quibbling over whether the artist is to blame for their condition when they choose art - but the people buillding and maintaining homes, or providing food or basic resources, are not doing well either!

That, in effect, is what single-payer health care is about - recognizing that the economy is more than capable of providing care for all the individuals, and making that happen.

It's not just the 'I want it free' culture, it's the 'things aren't as easy as they once were financially' for an awful lot of people.

Yeah. A bit of web-searching finds that something over 10% of the US population lives below the poverty line. Something like half if the population is "low income", without sufficient resources to build wealth, living basically paycheck-to-paycheck. And, those with middling income likely have student debt and high housing costs (in either rent or mortgage) to achieve or maintain that income.

 

[Randomthoughts]

The Scope of the Problem
For some designers, yearly deductibles have crept up to the $10,000 range; with game designers often working as freelancers without insurance, costs are even higher. Incidental expenses, like wound care supplies, specialized diets, and transportation all add to these costs. To address these expenses, GoFundMe (and it is usually GoFundMe, which accounts for 1 in 3 crowdfunding campaigns for medical costs) has become the crowdfunding platform of choice, with over 250,000 medical campaigns raising over $650 million each year.
<snip>

I normally lurk on these boards but wanted to comment about an important aspect of the US healthcare system that I believe plays a principal role in the problems designers and creative types face today: health insurance is primarily gained as a benefit for employment and highly subsidized by your employer. This is something that should absolutely change, though personally I'm not sure what the best solution is (but acknowledging that the current US healthcare system needs to improve).

The Patient Protection and Affordable Care Act (passed in 2010) was an attempt to rectify this by creating marketplace exchanges. I agree with the concept despite its flaws because health insurance became person-based versus employer-based.

That being said, have designers and those in the RPG industry considered the following options:

• Purchasing health insurance through the exchanges? I have a few friends who are tradesman who were initially against the ACA but found that it allowed them to remain as independent business owners.
• Enrolling in health insurance through professional associations? Many of us I presume are part of professional associations through our day jobs, some/many of whom may offer health insurance to its members. If one does not exist for the RPG industry, could one be created?
• Finally, could a charitable organization be appropriate for this (justified by supporting the arts, perhaps)? I'm not a tax(-exempt) attorney but it might be worth a shot. I'm particular wary of gofundmes and such for a few reasons, just like I am with donating to charitable organizations without knowing how the money is distributed.

Anyway, some suggestions since this topic comes up every so often, and its disheartening really.

 

[Umbran]

That being said, have designers and those in the RPG industry considered the following options:

• Purchasing health insurance through the exchanges? I have a few friends who are tradesman who were initially against the ACA but found that it allowed them to remain as independent business owners

At various points, I have worked as a contractor through an agency not headquartered in my home state. As the agency didn't meet my state's requirements for insurance, I turned to the exchange, and it was a major help. But, I was making too much money to get any of the state subsidies. So, I was effectively paying the full price for insurance, with no corporate contribution. And I gotta tell you, the plans I could afford were pretty pitiful. They got us basic health visits, and would have been some cushion for major acute issues. But, if anything really serious and long lasting had come up, that wouldn't have been a pretty picture.

• Enrolling in health insurance through professional associations? Many of us I presume are part of professional associations through our day jobs, some/many of whom may offer health insurance to its members. If one does not exist for the RPG industry, could one be created?

GAMA (the Game Manufacturer's Association) does this, I believe. But I don't know any details.

Could one be created? Sure... by someone who wanted to make it their full-time job. Professional associations large enough to have insurance bargaining power don't just grow on trees!

 

[generic]

It seems some people are willfully and knowingly spreading misinformation and lies about the state of US healthcare. In their minds someway somehow they do not think the US healthcare system is appallingly bad.

You have repeatedly demonstrated that you lack the ability to empathize with the arguments of other posters, refusing to even listen to them.

How would you feel if I simply stated that "the Canadian system is basically fascist, and is a socialist dictatorship, and you're a fool if you can't see that"?

Obviously, I don't believe that, but it's essentially the equivalent of what you're doing. Screaming at people and calling them idiots generally accomplishes little.

 

[Xenonnonex]

You have repeatedly demonstrated that you lack the ability to empathize with the arguments of other posters, refusing to even listen to them.

How would you feel if I simply stated that "the Canadian system is basically fascist, and is a socialist dictatorship, and you're a fool if you can't see that"?

Obviously, I don't believe that, but it's essentially the equivalent of what you're doing. Screaming at people and calling them idiots generally accomplishes little.

And some posters have repeatedly demonstrated the inability to empathize with the plight of the populace that have been greatly and adversely affected by the healthcare model in America. So good on us all I guess.
I cannot empathize with the arguments of some posters who argue in bad faith. Not when people's lives are being wrecked because of the healthcare model. To say otherwise means I lack humanity.

Your conflation is really something is not? Unless your comprehension ability is being severely affected something to that effect is not being put forward as an argument.
Woe and hambug to us who dare criticize the statistics and arguments brought up by people who think the American healthcare model is not appallingly bad. How dare we say in America everyone is not treated equally.

 

[generic]

And some posters have repeatedly demonstrated the inability to empathize with the plight of the populace that have been greatly and adversely affected by the healthcare model in America. So good on us all I guess.
I cannot empathize with the arguments of some posters who argue in bad faith. Not when people's lives are being wrecked because of the healthcare model. To say otherwise means I lack humanity.

Your conflation is really something is not? Unless your comprehension ability is being severely affected something to that effect is not being put forward as an argument.
Woe and hambug to us who dare criticize the statistics and arguments brought up by people who think the American healthcare model is not appallingly bad. How dare we say in America everyone is not treated equally.

So, you and only you engage in good-faith arguments? Good day sir, I'm done here. Try using logic to understand other posters, rather than calling them evil or stupid.