Bootstrapping in the Age of Blockbuster Budgets
Albert ReedCo-Founder/Director of Development
Demiurge Studios
Latest Version at: http://www.demiurgestudios.com/G
DC/
Introduction
Bootstrapping: Funding a company with no external investment and with little or no personal wealth
Without a means to bootstrap, the indie is in danger Big budgets present opportunity for small studios Look at the other lectures:
We Learned the Hard Way So You Don't Have To: How to Outsource Successfully
Multiple Site Game Development Successful Outsourcing on Triple "A" Games - A Case
Study of Forza Motorsport
Prerequisites: Individual
Patience: Growth will be slow Be willing to sacrifice 5 years of
competitive earnings Don’t wager what you can’t afford
to lose Willingness to work on less-than-
ideal projects
Pre-Requisites: The Team
Don’t got it alone Need inspiration, pick-me-ups, complementary
skills, sanity-checks Selling an individual is harder Game industry experience: It will save you
time Sales skill/expertise (not a full-time biz
person) Business consultant
Contacts Talent
Pre-Requisites: Infrastructure Computers, phones, etc. Place to work
Try to get office space with your first gig
The First Gig: Sales Part 1
Reach out to your contacts Scour job boards and project pages
(gamasutra.com, gamedev.net, etc.) Compete on price versus hiring Don’t be choosy. Look for isolatable tasks:
Programming: Installers, tools, gravy-features Art: Bulk environment art, animation, non-
essential characters Demiurge’s first: “Infest!”…
The First Gig: Infest
Web to native port Knew the owner of the company Got office space and $1000/week for two
programmers Saved $200/week for supplies, soda, t-
shirts, “cushion” Heat problems. Got a door on the
bathroom
The First Gig: Execution
Your reputation is everything Set high expectations, meet them Carefully manage the client relationship
“We’re half a man-day behind…” Professionalism – blow them away
Don’t be a pushover. Make trades for schedule It will gain you respect
Remember you still have nothing to lose Never stop selling…
Building Value: Sales Part 2 One project done, new prospects in the works
Use your new niche. Demiurge went with UnrealEngine
“Never turn down a job you don’t have” Serious games, installers, ports, box art Don’t pre-qualify the client, just get a check
Availability be damned! Make a website, keep it up Language tips: “We”, “Some other contractors”,
“Previously”, “Absolutely” Handling the “off site” question
Building Value: Sales Part 2 Talk to the right people.
Look for business-oriented contacts, avoid HR Making the case for outsourcing is easier
than ever Lower your rates to land the value-building
gig Console experience, engine experience, Big
Name Project Don’t de-value your work
Never stop selling… Cast a wide net, then steer the deal
Building Value: Negotiating Long-term projects are the brass ring “A little bit pregnant” goes a long way
Tools, concept art, experience w/their tech are great What to do when start/end dates don’t line up
Don’t stress until the deal is assured It’s still early, don’t get caught up in contract
details They only matter when it’s too late Hire a good IP/contract lawyer
Reach out for new skills. Leverage your reputation
Building Value: Execution
Establish process Better way to bake a normal map Off-site task tracking/progress reporting Scheduling capabilities
Build up a portfolio to sell skills Start game-development team
Demiurge did this too early
Fixed Price vs. Time & Materials
Avoid large fixed price gigs until team is practiced
Nudge gently – in the end the client decides
Leverage benefits of each…
Fixed Price
Much riskier Bigger potential pay-off
More independence Easier to develop own tools, processes,
techniques Watch out for fixed price AND fixed
date Avoid “incentives”
Time & Materials
Steady income (brass ring!) Harder to profit from, without high-
rates or low-cost employees/contractors
Generally a less adversarial client-relationship
Pricing
“The only way that you know you left money on the table is if you didn’t get the deal”
Examine costs of the hiring alternative: Salary + benefits (Health care, 401k, vacation) Hiring/firing costs (time and $) Equipment Is hiring even possible?
Client doesn’t have value of internal talent Other industry rates will be higher
Why to Outsource?
Your team represents difficult to hire developers (perhaps in quantity)
Your team is trained to get up-to-speed quickly on new projects
Your team will inflict a minimal drain on their existing leads
Hiring you does not raise their burn rate which gives them flexibility down the road
You have staff with a variety of expertise; you can put exactly the right person on each task
Looking Forward
Define corporate goals early Culture Product
Build value and advance goals with every gig
Starting internal development Big: When you can pitch the team Small: When you can afford it
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