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The 5 'Tiers' of TTRPG Publishing
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<blockquote data-quote="Mongoose_Matt" data-source="post: 9864891" data-attributes="member: 239"><p>Something else to consider when putting companies in tiers...</p><p></p><p>First, as Morrus said, revenue is not profit (revenue is vanity, profit is sanity). </p><p></p><p>If you see a company relying on licenced products, you can knock off 10% from their revenue straight away.</p><p></p><p>Second, see if you can find out how many staff they employ. Some of the companies mentioned, I know, have truly eye-watering monthly salary bills. The reason Mongoose can do the cool things is that our core running costs are low, and we have a smaller headcount than usual - all our admin, for example, is either automated or gets spread around the creatives (when you mail customer service, you are talking to one of the designers or graphic artists <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":)" title="Smile :)" data-smilie="1"data-shortname=":)" />).</p><p></p><p>We do that because the salary of the extra one or two admin people a place of our size would normally employ gets spread around everyone else.</p><p></p><p>Once you start getting about the 25-30 mark for number of employees and you are not selling as many books as Paizo or WotC, it is kind of like being strapped to the front of a speeding train (speaking from experience) to the point you <em>must </em>release something every month or sink.</p><p></p><p>And I don't know, I never found that much fun. It is a very easy trap to fall into though because running a company has a lot in common with gaming (all about the min/maxing <img src="https://cdn.jsdelivr.net/joypixels/assets/8.0/png/unicode/64/1f642.png" class="smilie smilie--emoji" loading="lazy" width="64" height="64" alt=":)" title="Smile :)" data-smilie="1"data-shortname=":)" />). It is easy to get diverted and forget why you are doing this in the first place.</p><p></p><p>As I say, vanity and sanity. Revenue is not a great measurement of company health, or even position in the market if things are not sustained.</p></blockquote><p></p>
[QUOTE="Mongoose_Matt, post: 9864891, member: 239"] Something else to consider when putting companies in tiers... First, as Morrus said, revenue is not profit (revenue is vanity, profit is sanity). If you see a company relying on licenced products, you can knock off 10% from their revenue straight away. Second, see if you can find out how many staff they employ. Some of the companies mentioned, I know, have truly eye-watering monthly salary bills. The reason Mongoose can do the cool things is that our core running costs are low, and we have a smaller headcount than usual - all our admin, for example, is either automated or gets spread around the creatives (when you mail customer service, you are talking to one of the designers or graphic artists :)). We do that because the salary of the extra one or two admin people a place of our size would normally employ gets spread around everyone else. Once you start getting about the 25-30 mark for number of employees and you are not selling as many books as Paizo or WotC, it is kind of like being strapped to the front of a speeding train (speaking from experience) to the point you [I]must [/I]release something every month or sink. And I don't know, I never found that much fun. It is a very easy trap to fall into though because running a company has a lot in common with gaming (all about the min/maxing :)). It is easy to get diverted and forget why you are doing this in the first place. As I say, vanity and sanity. Revenue is not a great measurement of company health, or even position in the market if things are not sustained. [/QUOTE]
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