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…