Alteil October 2012 Financial Report
Written by Logress   
Monday, 12 November 2012 18:03

October Financial Report:

 

As promised, I’m going to be giving you guys as much details as I can about your donations and what we’re doing with them...

 

Income was about 50% of last year’s monthly average. Pretty good considering that we were only up for half the month, and there were no new cards or serious sales. My guess it was mostly because of users wanting to show their support.

 

Nothing solid yet, but based on the buying patterns, I’d say chance of a chargeback is above average to the low end of high. Not a great position to be in, because PayPal offers few ways to screen out possible credit card fraud but certainly puts the screws to you if it happens. Even a single case of it can wreck things. Basically, the bane of small internet businesses.

 

Before I go any further, might as well give our backstory on pre-October financials.  Mysteryman and myself (mostly Mysteryman, since I’ve been poor since MB shrunk) funded the getting-the-game-up-and-running part of the show.  Servers had to be set up, chunks of flash changed, login made, etc. Some of the setup, was of course ‘development’ technically, like FB login and efficiency changes on the back end (see ‘server costs’ below for more details). Total cost was about triple this month’s income (not including Mysteryman’s, GGG’s Thatdave’s and my time, which will be counted as free until further notice). We’re going to try and pay off this ‘debt’ slowly. Obviously we don’t want it to suck up our funds, but since we’re already not paying ourselves we’d like to recoup a little.  If we feel that recouping is limiting our ability to develop new things, we’ll stop.

 

COSTS:

 

Royalties to Japan – I’m going to take this off the top before dividing everything up, because there’s probably something in my contract saying I can’t tell you the cut. But, as someone who’s worked in licensing, I can tell you it’s reasonable.  Overall the Japanese have been really great about the financials, giving us time to pay and supplying us with thousands in free software. Overall, it will probably be early next year before they will have taken more than they've given in value.

 

Server Costs – 15%

This is a fair number and we will be getting it lower as we go – both as a % because it shouldn’t rise much with increased traffic/income AND as a flat number because we’re going to work to improve it. I can tell you at Media Blasters Server costs were always more than 50% and often crept over 80% (and they were making way more money).  GP did a little better, but not that much. We spent a lot of time and effort at the setup stage to change the way certain things were done to make this possible.  Essentially, when we were assembling our business plan, reducing server costs was the first requirement for making this whole thing a feasible project.

 

Paying back Setup/Startup (as detailed above) costs – 15%

 

New Development (paying for developers beyond the core Apocoplay team) – 35%

 

Set aside for possible chargebacks – 15%

 

Taxes, fees, legal/financial expenses – 20%

 

-Those last two sections may bleed into each other a little bit depending on how things go, since either one could very easily turn out to not be high enough.

 

So, that's where we are!  We'll be jogging these numbers around month to month, depending on how things go and what changes.  Our goal is to increase the % going to New Development each month. Since a lot of the other costs are more or less fixed, as donations increase, the % going to development will increase as well. Again, we appreciate your support and keep checking back on our financial reports each month so you can track our progress.

 


 
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