Selling the game

Valsingam · June 19, 2016, 9:21am

Hi everyone,

I need your advice on overall process of releasing and selling the game on steam. How does it all work when you have a completed project?
I have a registered company and I need to know how to manage the income for the project that was created based on royalty agreements. Does all the money go to the company account and then you calculate somehow the sums that you have to pay to your companions or is there some other ways?
So how does it happen?

Neville_Adams · June 20, 2016, 1:01am

First, you need to go through steam green-light. Post about your project in the forums so that people can help up-vote it (add the trailer etc in the post). Start with that. The rest I think you’ll have to be in contact with Epic (about the royalty stuffs).

Jamendxman3 · June 20, 2016, 1:45am

I suggest you find a legal expert, so as to not get yourself in trouble by listening to internet lawyers

Valsingam · June 20, 2016, 7:26am

Of course I will, but I want to gather as much information as I can. Besides many people here already have the experience of going through the process or releasing and selling the game. It would be interesting to know their thoughts.

NevilleAdams · June 21, 2016, 1:44am

Yeah you may want to find a legal expert, but that can get expensive obviously. if you trade in your own name it’s not that bad, but once you bring partners into the mix you may want to draw up a contract/agreement with those partners - your lawyer can help with this.

Winterstone · June 21, 2016, 11:16am

From my understanding on it, and this is just my thoughts from a few articles I have read, Steam take 30% right off the top. The best way to look at that is selling a game for a $1.00, Valve is taking $0.30. Most digital stores are the same at 30% FYI.

I believe Epic starts collecting 5% royalty when you finally gross $100,000…now if thats an annual figure or not I am not certain. I imagine Epic looks at total gross, regardless of what other cuts to companies are taken for that to kick in.

I guess basic math would be $100,000 - $30,000 (Valve) = $70,000 for you to pay your royalties out to your team. Anything past that subtract 35% immediately and the rest, 65% is yours for your team.

THIS IS HOW I UNDERSTAND IT.

Magnex · June 21, 2016, 11:56am

If you already have a company and are asking such questions it’s looking pretty bad unless you just started. All business transactions have to have their own separate bookkeeping with details depending of you company type and the country/state you are living in. Same goes for payments, as it can vary if the people you are paying are seen as a contract workers or as a “staff”. All these matter when it comes to taxes. You need an expert to help you.

But in short, all your revenue should go to company account. Your get sales reports from each platform you are selling on and then you report your unit sales and revenue each quarter to Epic Games for every product that is affected by the royalty guidelines.

Wrong. Epic takes 5% from gross sales after $3000 per product/quarter. Also with your examples the royalties are counted from the $100k sales before Valves cut and not from $70k.

Winterstone · June 21, 2016, 12:19pm

Magnex;551902:

If you already have a company and are asking such questions it’s looking pretty bad unless you just started. All business transactions have to have their own separate bookkeeping with details depending of you company type and the country/state you are living in. Same goes for payments, as it can vary if the people you are paying are seen as a contract workers or as a “staff”. All these matter when it comes to taxes. You need an expert to help you.

But in short, all your revenue should go to company account. Your get sales reports from each platform you are selling on and then you report your unit sales and revenue each quarter to Epic Games for every product that is affected by the royalty guidelines.

Wrong. Epic takes 5% from gross sales after $3000 per product/quarter. Also with your examples the royalties are counted from the $100k sales before Valves cut and not from $70k.

Awesome! Thanks for clarifying for me too!

Valsingam · June 21, 2016, 1:03pm

Yeah, nice to know that stuff. Also as I understand you don’t have to pay anything from the sums that you gather on kickstarter campaign?

Magnex · June 21, 2016, 2:04pm

Royalties apply to that type funding too but with certain limitations:

FAQ:

What if my product obtains crowdfunding via Kickstarter or another source?

Royalties are due on revenue from Kickstarter or other crowdfunding sources when the revenue is actually attributable to your product. For example, if the user is required to purchase a particular funding package to obtain access (now or later) to your product, or if that package gives the buyer benefits within the product such as in-game items or virtual currency.

Here’s an example of what we mean by “attributable”: Assume you provide two tiers of offers, a signed poster for $20, and a signed poster plus game access for $50. No royalties are due on ancillary products like posters, so no royalty is due on the $20 tier. On the $50 tier, the user is paying for the poster with a $20 value, and that implies that the remaining $30 of value is attributable to the product. So, for each $50 tier sale, you’d pay a royalty of $1.50 (5% of $30).