I’m no expert, but I have researched the market a bit. In my opinion, it’s about “The Deal”. It depends on several things.
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Who is buying, and what they are willing to pay.
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You could simply add up your man hours and put a price tag on that.
Personnally I would avoid a buy-out, It doesn’t serve anybody [imho], in the world of publishing, it is wiser to license your work.
That being said, if I were to do a buy-out I would calculate my man hours (standard freelance rate, not in-house employee rate) and multiply by 3. Think of it like this. How would a business owner calculate the sale price of it’s business?
So here is my scenario:
Standard hourly rate for game developers (coders, artist, designer,… whatever, just an arbitrary number, average) , $30 per hour
Standard for freelance or independent ( multiply by 3, for tax deductions, business expense, insurences…whatever) , $90 per hour
Say you put in 100 man hours. Your labor value is $9,000.00, Where $3,000.00 looks like a clear profit. Still I think any business would not sell it’s business for “one-off” profit. You should go for at least 3 time profit. $9,000 +($3,000.* 3) = $18,000.
If you license your product, It may look like this. You license you product @ 10%. The licensor leases your product, and anticipates revenue of $500,000.00 first year. They will advance 50% royalty of projected sales. That’s a check for $25,000.00… and they keep paying as long as they make money. Do the math my friend.
Developers need to be educated as to how to make money in the industry. The way it is now, there are many talented people who may be taken advantage of, and selling themselves short. Buyers are not going to show you how to make money. This weakens the marketplace, and we end up with a lot of cheap crap and finically poor developers. Get paid well so you can continue to create BETTER games
Finally, this may seem difficult to achieve. I’m still working on that one myself….