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Why Didn't Paizo Do their Own "Dragon/Dungeon?"
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<blockquote data-quote="Umbran" data-source="post: 3999261" data-attributes="member: 177"><p>I can guess that, for a new magazine that doesn't have a whole lot of people buying it, it probably wouldn't add much. What you can charge for ads depends on how many people are likely to see those ads. Just having Paizo's name on it is probably not much of a guarantee for advertisers to gamble that they'll get a return on their advertising investment.</p><p></p><p>Every business venture has a bootstrapping step - most of them run at a loss for a while before they start generating a return on what the company invests in them. In this case, the magazine would likely not pay for itself initially. It would have to be around for a while, gaining fans, generating buzz, and so on. After a while, you're selling enough copies that advertisers are willing to pay to show their wares in your magazine, the economy of scale in printing starts working for you, and your subscription fees amount to something. And, of course, there's no guarantee that it ever pays off at all - it may never generate enough buzz, or just not be good enough to compete, or what have you.</p><p></p><p>That's where that million dollar number probably comes from - you have to have a million dollars you're willing to risk on it if you want to have it work at all. Paizo is great, but I don't know if they have a million in unallocated capital funds for which they've got no other use, that they can risk throwing down the drain.</p></blockquote><p></p>
[QUOTE="Umbran, post: 3999261, member: 177"] I can guess that, for a new magazine that doesn't have a whole lot of people buying it, it probably wouldn't add much. What you can charge for ads depends on how many people are likely to see those ads. Just having Paizo's name on it is probably not much of a guarantee for advertisers to gamble that they'll get a return on their advertising investment. Every business venture has a bootstrapping step - most of them run at a loss for a while before they start generating a return on what the company invests in them. In this case, the magazine would likely not pay for itself initially. It would have to be around for a while, gaining fans, generating buzz, and so on. After a while, you're selling enough copies that advertisers are willing to pay to show their wares in your magazine, the economy of scale in printing starts working for you, and your subscription fees amount to something. And, of course, there's no guarantee that it ever pays off at all - it may never generate enough buzz, or just not be good enough to compete, or what have you. That's where that million dollar number probably comes from - you have to have a million dollars you're willing to risk on it if you want to have it work at all. Paizo is great, but I don't know if they have a million in unallocated capital funds for which they've got no other use, that they can risk throwing down the drain. [/QUOTE]
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Community
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Why Didn't Paizo Do their Own "Dragon/Dungeon?"
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