T11's defence mechanism is rather flawed:
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Originally Posted by Jonathan Bayme (T11 CEO)
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Originally Posted by member II
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Originally Posted by Rick Everhart (T11 Moderator)
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Originally Posted by member I
40% is a lot. Granted, it will get MUCH more publicity then if you sold it yourself, but still, it is a bit steep.
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Theory 11 getting 40%, that is actually a pretty fair rate. If any of you have gone to a company and tried to publish your own effect, using their camera crew, editor, etc. you are looking at around a few thousand dollars of your own money to produce a top notch DVD with artwork, advertising and everything else that goes into it. Most of us including myself do not have that kind of money up front to take a gamble. Other companies that I know of do not charge you anything up front, but will then tell you that the production value was like $4,000 and that you do not receive a dime until the profits have surpassed that amount. I know a few guys who haven't made a cent yet who have released material through Paper Crane because of issues like this. Not putting them down...that is just how business works sometimes. Most of the time you as the artist get a percentage of the profit, AFTER you have broken even with the company. |
Yeah, but then again Theory11 isn't filming, editing, producing, covering any expenses at all for your publication. You're doing all the work here and T11 is providing you with a service and charging 40% for it. I don't know, I'm on the fence about this.
It has potential to sell but even Ebay only charges you 9% for your product. |
Our royalty rate on The Wire is the best in the industry, by far. Unparalleled. Unheard of. Murphy's Magic, the largest distributor of physical magic DVD's, typically purchases units at 40% of retail cost. On The Wire, you'll be receiving 20% greater than that - 60% on every unit sold. We provide the platform, the marketplace, an enormous audience, payment processing, and the bandwidth. To compare, it's a valid point that Apple provides developers 70% royalty (10% greater than us), but the iTunes App Store is run at break even, not for profit, to support sales of iPhones and iPad's. We don't make iPhone's. So as a business, we have to be make cents. That said, you can also publish your effect or move for FREE, and we encourage that route as well. |
Reminds me of Apple when the famous antenna issue was discovered, that they took many other smartphone brands and showed they all had the same issue. No one agreed with that action. T11 just does that, but with other magic sellers.
Of course they would still make a lot of profit with 70%. Not to forget that it's only just a section. They still got their playing cards, tricks and far-overpriced gear to make profit, similar to Apple.
I am pretty sure we are the only company that actually breaks even, which is why we give 99% of the profit to the artist, which equals 90-95% of the related incomes. The Wire is the best in the industry, by far? Unparalleled? Unheard of? If that's the research they will be doing on their releases, it will be the crappiest place soon. Unparalleled, indeed.
Also, I just realized they can't go all that hard on the filtering, which is actually what every magician is hoping for. But if they would go hard on it, the Wire will be just like their normal tricks section.
09-05-2011, 03:36 PM
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