Caradoc Games now has a webstore! For those following the blog there has been quite a lot happening in the background… we shifted hosting, rebuilt parts of the website, and added a shop! It’s taken a long time to get it all sorted out, but everything is up now, and ready to roll!
Over at the shop you can find all of our games for sale, including physical copies of the Corsairs Zine, and everything else we have produced. Some, like our micro-RPGs are set to ‘pay what you want’, so if you’re after an evening of silly fun, they are well worth checking out (yes, I am biased 😉 ).
To celebrate the opening of the shop we have a sale running from Black Friday to Cyber Monday with a reduced price on everything Corsairs!
Earlier in this series of articles about running a Kickstarter (links to all of which can be found here), I wrote a post called Levels and Goals in which I talked about setting the backer levels, the prices for the backer levels, and the funding goal for the Kickstarter. The relevant part is that I had decided that the physical zine would cost $15 AUD, and the digital only zine would cost $10 AUD. In the linked article I delve into why I made these choices, and for the digital zine that level seemed on par with what a lot of other ZineQuesters were charging for their digital zines (Australian Dollars translates well into US Dollars, with a $10 AUD level costing about $6.70 USD when the Kickstarter launched).
All of this has implications…
I don’t mean implications for the Kickstarter, though obviously pricing is important, and I’ve lost track of the number of times I have written hand-wringing articles about the added costs of shipping. No, I mean implications beyond the Kickstarter.
Corsairs funded (yay!), the physical rewards have been sent, and of the two digital supplements that were unlocked as stretch goals one has been fulfilled, and the other will be fulfilled in the next few weeks. But, what about after the Kickstarter? What would I do after the dust had settled and the Kickstarter has been fulfilled? Is that sweet goodnight for Corsairs?
Obviously not. I had always planned to have Corsairs available to buy digitally through both Itch.io and DriveThruRPG. What I had not considered was the implications of setting my backer levels, and what that might mean in the months that followed…
At the moment Corsairs is available on both Itch.io and DriveThruRPG for $7.99 USD. Why this price? Why not cheaper? I mean, it would be nice to have Corsairs sitting at say $4.99, and appearing in the ‘Popular Under $5’ lists on DriveThru. It’s certainly a more appealing price, and likely to lead to more sales. So… why?
Well, the reason comes back to implications… The backers of Corsairs spent good money supporting my Kickstarter, and without them it wouldn’t be a success, and certainly wouldn’t be available as it is. For the digital only copy backers paid their $10 AUD. How would they feel, having supported me, to turn around and see the game on sale for cheaper? Is it a betrayal of sorts? Would I be disrespecting them? Playing them for fools? Would I be undermining any future Kickstarters I run through such disregard?
All these were thoughts that swirled through my head when it came to putting Corsairs up for sale as a digital product. While the backer prices I set were a reasonable choice for the sake of the Kickstarter, they had implications and set (in my head at least) boundaries on what I could or should charge after the Kickstarter… How could I place Corsairs up for sale for less than what my backers paid? In the end I didn’t. I have no doubt that a number of purchases have been passed over because of the cost, and that more sales would have been achieved at a lower price point, but still…
I am pretty confident that many backers wouldn’t mind seeing Corsairs online for a little less than what they paid, after all they got two extra digital zines as Stretch goals, and yet… I also think there would be some who would feel they had been unfairly treated, and that is valid.
So what does this rambling thought train of a post imply? For me at least it means that next time I will think carefully about the future implications of pricing for backer levels, and what that might mean carried forward past the Kickstarter phase. I need to ask myself where will this game be available in six months time, and what sort of price do I want to be selling it for. And lastly, I need to parse those thoughts and bring them into the decision making process when defining backer levels.
This post might be very ‘Australia’ orientated, but I am going to make some obvious observations about timing, tax, and the ZineQuest Kickstarter I ran in February this year. In Australia the financial year runs from July one year to June the next. ZineQuest ran in February. My Kickstarter project for ZineQuest launched on the 1st of February, and ended on February the 16th, funding successfully. Kickstarter takes time to gather rewards, chase backers who declined or didn’t pay, and generally process things, and in the end the money raised by the Kickstarter landed in my account on the 2nd of March, about two weeks after the project had ended. It should also be noted here that the amount pledged and the amount received by the project creator are not the same thing. Kickstarter takes it’s 5% fee, and there are additional processing fees which typically round the amount up to around 10%, and then there are dropped backers and refunded backers. Dropped backers are those who pledged an amount of money, and then who, for whatever reason, didn’t pay.
To give a quick and dirty break down using my Kickstarter as the example:
Corsairs funded on February the 16th, with 236 Backers pledging $4116 AUD.
Dropped Backers amounted to -$76, leaving the amount gathered by Kickstarter at $4040 (an ominous number 😀 )
Kickstarter fees amounted to about $202 and processing fees of a further $167.
Meaning that, after all else, Corsairs resulted in a deposit into my account from Kickstarter for roughly $3671 (yes, I am sanding off the cents throughout).
INSERT OBLIGATORY PLUG:
If you don’t have a copy of Corsairs you can fix that by heading to DriveThruRPG or Itch.io. If you missed the Kickstarter and are interested in a physical copy of the zine, there are still some physical copies left, contact me at email@example.com for details.
Out of this I obviously had to pay for everything, from art to printing and shipping. Shipping was the largest expense by far, and cost a little over $1100 on its own. Aaaaannnndddd this is the thing that I think I am going to try and remember for the next time…
With the money hitting my account at the start of March, and the end of the financial year sitting at the end of June, the money raised by the Kickstarter was going to sit in the 2019/2020 taxable year. Between art, printing delays, and Covid, I ended up having Corsairs printed and shipped to me at the start of August, and then shipped out to my backers in the middle of August. Meaning the printing and shipping costs of more than $1600 would be counted as an expense in the 2020/2021 financial year.
Why is this relevant? It’s about the taxable income for any given financial year, in an ideal scenario I would have had the game printed and shipped before the end of the 2019/2020 financial year in June 2020 in order that the costs of printing and shipping would count against the income from the Kickstarter as an expense, and reduce the taxable income of my business.
Now, I fully understand we are talking small amounts of money here compared to almost every other kickstarter or business. But timing, as best as is possible, the expenses element of a Kickstarter so that the income does not look artificially inflated to the tax office is really worth planning for.
Yes, I had an income from the Kickstarter of over $3600, but that didn’t account for multiple expenses (art, printing, shipping labels, envelopes, shipping, and everything else). The tax office don’t care what expenses are upcoming though, that’s for the next financial year, all that matters is what happens between the start of July 2019 and the end of June 2020. Now, perhaps there is an advantage to the fact that my business has already racked up a bunch of expenses for the 2020/2021 financial year, and that may be useful when it comes to the (fingers crossed) ZineQuest in 2021 and lodging my tax return for the 2020/2021 financial year, but thinking about the timing of income and expenses is something I am much more aware of now than I was back in January of this year. This might be especially true if you are running a Kickstarter or making money from your creative work in addition to a day job, and your income is already close to a tax threshold.
Dull talk, and perhaps very Aussie-centric, but some further thoughts following my experiences this year with the ZineQuest.