On profit and creator-owned publishers
Jan 29th, 2008 by Matt Snyder
A play, to explain why I’m really fucking tired about arguing about people claiming indie RPG publishers don’t make a profit.
Some people: Well, you indie publishers are cute and all, but you’re not really making a “profit,” you amateurs you. Here’s why. See, profit is revenues minus expenses. And, you make nice revenues, I guess, but you don’t count your expenses.
Indie Publishers: Um, yeah, we do count expenses. See? here’s my revenue, and here’s my cost of goods sold, and here’s some art I bought.
Some people: Ah ah ah! You don’t count your time! You cheated. You didn’t count the time you spent writing as an expense! Gotcha!
Indie publishers: WTF?
Some people: See? You really don’t even understand business. Now, stop chewing up my living, ya’ punks.
Indie publishers: Are you drunk?
Some people: No! Unlike some folks, I value my time, and here’s what I should make as a living wage. If you can’t compare to that, your “profit” is a fairy tale. You’re just amateurs.
Indie people: You’re weird. First, no one “deserves” a living wage. But, nevermind that. More importantly, your revenues minus expenses is EXACTLY RIGHT. The problem is that my “time” is not an expense! It’s equity! It’s a valued asset, and it represents the stuff I own. All that “time spent” stuff is an expense to a company who pays freelancers or employees! I don’t have any employees, you nut. I employ artists and layout people, but I count their pay as an expense.
Some people: Well, you are an employee.
Indie people: Um, no. I’m not. Nothing, anywhere, ever says I have to pay myself a living wage in order to be a “real” business. That’s a silly assumption. I’m the owner. That’s like saying a corporation pays its shareholders “wages” when it gives out dividends. I’m not required to “pay myself” a dime.
Some people: Are too!
Indie publishers: Nuh uh!
Some people: See! Amateurs. You aren’t worth my time.
-THE END-

I like the concept that my time/wordcount is equity, since it’s my company or book.
Nice.
(Hey, is there an LJ feed for this blog, man? Just curious.)
CU
Hi, Chad! Thanks.
Um, no, currently there is no LJ feed, but I’m sure it’s a cinch to set up. I’ll let you know when I get it done.
In fact, as a UK-based sole trader I’m not *allowed* to count my time as an expense (not for tax purposes anyway). So in that technical sense you’re quite right. I guess one could have a parallel discussion about opportunity costs and such that would end differently.
Hi, by the way.
This sounds like an interesting premise for a short run game!
Hi, Tim! Thanks for commenting.
Preach it, Brother Snyder!
Actually, this is a very good, concise refutation of these claims. I’ll need to bear it in mind for future reference. Good show.
Cheers
Malc