Tuesday, December 1, 2009

How much money does RPGNow actually make? I think I know…

While working on banner at RPGNow I noticed something that I had missed for a while. The banner system told me that I could get 5,000 banner impressions per day and that there were 6 banners currently being shown in rotation. At that second I realized, RPGNow gets 30K per day. Simple old math.

Multiply that number out for the month (30.5 days) you get 915,000 impressions/hits. Years ago RPGNow.com said that the average price for sale on PDF where $6 - $8 ($7 average). So if only 1% of the 915,000 monthly impressions/hits (9,150 sales) purchase the average ($7) you get $64,050 in monthly sales. Multiply that number by 12 months and you get $768,600 for yearly total sales. RPGNow’s take (roughly one-third of the money generated) is $256,200. Quarter of a million sounds good until you add the salary of 8 people ($40K per person = $320K) plus other operational cost (roughly 50% of salary = $160) and you come up with a total of $480K. A shortage of nearly a quarter of a million dollars with the numbers I gave you.

But I think RPGNow get more than 1% of their 915,000 monthly impressions/hits. I believe that do more like 5% to even 10% of their monthly impressions/hits.
  • If you do this same example with 5% you get $801,000 as RPGNow's take home after everything is calculated.
  • If you do this same example with 10% you get $2,082,000 as RPGNow's take home after everything is calculated.
Now this is all theory and none of this is 100% solid fact, but it does get you wondering about how much RPGNow does really makes. Talk to you later…

2 comments:

  1. Too many unknown variables to trust these numbers. And with your phrasing "could get 5,000" ... I would read that as, if there is *1* banner in a given day you could get 5,000 (i.e., 1/6 of what you estimated).

    Going to the site and guessing at how many banners there are in a given day is also not very scientific. ;) And as an outsider, I don't know what options they offer for banners(you would know more)...I believe some sites let you pick how much exposure you want, so it's possible there are other banners that you didn't see -- i.e., some banner(s) that show up infrequently in comparison.

    And there's the whole question of the multiple sites (DriveThruRPG, comics, etc.) run by them as OneBookshelf, but then it's unclear whether that is wholly run by the same people or if there are more that hold it together.

    Basically, without knowing the facts, this comes across as conjecture that's not really that useful. Although I do admit to some curiosity myself. :)

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  2. Like I said, this is all theory and someone does know the real truth but itgets you thinking...

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