Analysis and Results of the Great Independent Comic Survey Part 2

This post is a continuation of the Great Independent Comic Survey and covers distribution and merchandise rights.

Question 5: What percentage of your sales are hard copies?

Answer: 53% of the group makes 75-100% of their sale in hard copy.

Answer Choices	Responses
less than 25%	23.33%
25-50%	10%
50-75%	13.33%
75-100%	53.33%

Question 6: What percentage of your sales are digital?

Answer: 73% of the group claims less than 25% of their sales come from online distribution.

Answer Choices	Responses
less than 25%	73.33%
25-50%	16.67%
50-75%	6.67%
75-100%	3.33%

Question 7: How much of your sales happen at conventions?

Answer: 40% of the group sells less than 25% of their sales at conventions. This question had the most even distribution of all the survey questions.

Answer Choices	Responses
less than 25%	40%
25-50%	16.67%
50-75%	23.33%
75-100%	20%

Question 8: How much of your sales happen at comic book shops or other brick and mortar stores?

Answer: 60% of the group sells less than 25% of their books in comic shops.

Answer Choices	Responses
less than 25%	60%
25-50%	26.67%
50-75%	13.33%
75-100%	0%
Total	30

When these distribution questions are taken together, they suggest that there is significant room for growth in the digital sector, since both convention and bookstore sales do not appear to be robust. Reducing or eliminating the issue of shelf space, printing costs and shipping costs could have the effect of increasing sales and decreasing costs, but I don’t have enough information about fixed digital distribution costs to make a definitive statement about that.

Question 9: Do you control the merchandise rights to your title?

Answer: 73% of the group controls the merchandise rights to their titles. This is encouraging because there has always been a trend of certain publishers taking many other rights in addition to the publish rights needed to print the book (see Get What You Give). The downside to this is that 23% of the group learned to retain their rights after the rights to some titles were taken away.

Answer Choices	Responses
Yes	73.33%
No	3.33%
I control the rights to some properties but not others.	23.33%
I'm not sure who controls the rights to my titles.	0%

Question 10: Are you already selling merchandise based on your title?

Answer: 67% of the group is not selling merchandise. This is encouraging for two reasons. First, the fact that a third of creator owned books has some kind of merchandise supports the idea that there is a market for these goods. Second, the results show untapped potential for more merchandise, especially when you consider that a majority of artists retain the right to sell it.

Answer Choices	Responses
Yes	33.33%
No	66.67%

Conclusion

Based on the results of the survey, the market does not have the necessary volume for my proposed merchandise platform to thrive. That doesn’t mean that there is no value in releasing a creator owned book. It doesn’t mean that individual creators can’t set up their own creator owned merchandise and make it profitable. It does mean that there is an opportunity in both digital distribution and merchandise that independent creators can use to enhance the popularity and sales of their books.

If you have any questions about this survey, please let me know.

Have fun.
Gamal

Analysis and Results of the Great Independent Comic Survey, Part 1

Early this year, I wondered if the independent comics industry was ready for an independent merchandise platform (See Do You Want to Create Merchandise for Your Comics?). During the spring, I created a business model that would fulfill this theoretical need and discussed its’ potential. (See The Magic in a Batman T-Shirt).  Over the summer, I set up a survey to test the market and see if conditions were favorable for launching such a venture (See The Great Independent Comics Survey). Now that New York Comic Con is just around the corner, I’d like to share the results with you. While they don’t support my business model, I still think there are some important lessons that independent artists can take from the survey. This post intends to share both the results of the survey and my interpretation of those results.

 Methodology

Keep in mind that I am not a statistician. I don’t have a degree in marketing or any background in analytics. I simply asked ten questions to determine the current size and scope of the independent comics market. My questions might not have been ideally worded to generate optimum results. My sample size (based on the Facebook, Linked In and Google + groups I belong to) might not be representative of the overall US market. I just tried to work with the resources I had available. This is what I got.

I broke the survey into three parts; sales, distribution and merchandise rights.

Sales

Question 1: How many creator owned titles do you release per year?

Answer: 75% of the group releases 1 or 2 titles per year. This makes sense since creator owned projects are often passion projects that have to take a back seat to day jobs and paying work for hire gigs that up and coming artists need to gain recognition (See Entertainment Contracts 101). The reality from a retail standpoint is that more titles in the market provide more chances for readers to find a title and a story they like. If the one title available doesn’t suit them, the reader has to move on to another book.

Answer Choices	Responses
1-2	76.67%
3-4	10%
4-5	3.33%
5+	10%

Question 2: How many issues do you release for each title per year?

Answer: 87% of the group releases 1-4 four issues of each title per year. This reduces the market entry points for independent artists even further, because readers used to monthly offerings in the mainstream comics market are more likely to turn away from or forget a book that comes out quarterly or annually. While it might not be realistic given the time constraints, more issues of a title can raise the profile of the title as a whole.

Answer Choices	Responses
1-4	86.67%
4-8	6.67%
8-12	3.33%
12+	3.33%

Question 3: How many copies per year do you sell for each creator owned title?

Answer: 53% sell less than 100 copies, 23% sell less than 250 copies. This could be the result of many factors, but depending on the price point of each book, this suggests that many creator owned books lose money and do not recoup their initial investment.

Answer Choices	Responses
0-100	53.33%
101-250	23.33%
251-500	10%
501-750	6.67%
750-1,000	6.67%
1000-3,000	0%
3,000+	0%

Question 4: What is the average number of copies that you sell per month?

Answer: 83% stated that they sold an average of less than 50 copies per month. This question is an elaboration of question 3 that reinforces the idea that the overall sales of independent books have a lot of room for growth.

Answer Choices	Responses
0-50	82.76%
100-150	3.45%
150-200	3.45%
200+	0%
51-75	10.34%
76-100	0%

My next post will look at the distribution and merchandise aspects of the survey.

Have fun.
Gamal

The Great Independent Comic Market Survey

If you went to SDCC (or to any major convention) you know that merchandise is a major factor in the mystique of comics (See Making Comics Isn’t Really About making Comics Anymore). This is true because the lure of comics creates fans hungry for increased identification and connection to the characters they love (See The Magic in a Batman T-Shirt) Readers of this page know that I think independent comic creators deserve their own merchandise lines, just like the major players (See Do you Want Merchandise for your Comics). I think I'm close to a solution, but I need to find out if it makes sense for creators to get involved in the business.

That's where you come in.

I've developed a short survey to study the sales patterns of independent comics to test the viability of my model. It's short and sweet and if you take five minutes to answer the questions, there's a free gift in it for you.

Readers of my other page (See http://gamalhennessy.com/) know that I am also a published author. If you take the independent comic survey, I'll send you a free digital copy of my short story A Special Request as a thank you. Just send me an email after you finish the survey and I'll send it to you.

The survey is designed to benefit you and the book will (hopefully) be a classic one day so you win coming and going. I plan to keep the voting opened until August 20th. Make your voice heard.

Thanks in advance.

Have fun.
Gamal

Click Here to take the Great Independent Comic Market Survey

The Magic in a Batman T-Shirt: Why Licensing Works

Summer is comic book season in the entertainment world. Blockbuster movies pop up in theaters. Major video games debut at E3. Kids have their comic related clothing. Crossovers dominate the comics market, but mainstream media doesn't notice that unless Superman or Captain America die (again). The interest in the comic characters is arguably highest in the summer, but that interest is often focused on the 'secondary' market, not the source material.

Why? What makes a superhero based TV show or movie so popular? More importantly for our purposes, why does comic related merchandise sell so well every year? I originally explored this idea in an earlier post (See Making Comics Isn’t Really About Making Comics Anymore). Now I'd like to explore the social and emotional aspects of licensing, and those factors can help the independent comic creator.

Disclaimer: Most of my other posts have discussed the legal aspects of the comics industry, but this will be more of a pop culture analysis. While I don't have an anthropology or sociology background, these ideas come from the time that I've spent working and observing consumer behavior as it relates to licensed goods at Central Park Media, Marvel and as an independent consultant.

The Definition of Cool
There is no practical difference between a plain white t-shirt and a white t-shirt with a Batman logo on it. Both of them protect you from the elements and get you into restaurants that have a 'no shirt, no service' sign. But the Batman shirt can cost twice as much as a plain t-shirt. Why? Some might say 'because it's cooler than a plain old t-shirt.' That might be true, but what makes it cool?

A person who likes Batman and owns Batman merchandise gains three benefits that have nothing to do with the practical uses of the items. Those benefits are identity, community and nostalgia.

Personal Identitification: When a person relates to a character or a story, their connection to that brand increases. It could be Superman's morals, Wolverine's rebellion or Batman's determination that we aspire to. It could be the emotional impact of stories like Watchmen or Kick Ass or the wit of characters like Iron Man and Spider-Man. Wherever that connection comes from, a reader sees themselves (or wants to see themselves) in the characters they love. They emotionally identify with that character and on a certain level, the merchandise they wear is an expression of that identity.

Community Acceptance: Humans are social animals. We like to organize ourselves into groups based on some defined characteristic. We are also highly visual creatures. We make decisions about people based on what we see. When we see someone who we perceive to be similar to us, we are more likely to accept them and feel a sense of connection to them, however small that connection might be. This is easiest to see in children. Two boys meet for the first time in the park. Both are wearing Batman t-shirts. "You like Batman! I like Batman too! Let's play!" Now they're friends, very little additional interpersonal screening between them.

Emotional Nostalgia: Merchandise can be a subtle reminder of a past experience with, the power to evoke much of the initial emotions. If you have fond childhood memories of watching Batman cartoons, the Batman t-shirt can act as a kind of artifact. It can bring your mind back to a pleasant event in your life and impact your mood whenever you see it.

Not Just for Comics
It’s a mistake to think that the identity, community and nostalgia concepts are unique to comic geeks and unsophisticated children. Groups on every level of society share the same qualities. They just use different products. A man might express his wealth and status with his Mercedes or his Rolex. A woman can instantly accept or reject another woman because of her Prada handbag or Gucci shoes. A football fan has a connection to the jersey he wore when his team won the Superbowl. The baseball fan has his signed glove. In a larger sense, consumer products on every level use logos to evoke emotional responses in order to sell goods and services. Starbucks, Apple and Nike are universal examples of logo and merchandising power.

The Cure for Oversaturation
With all the merchandise, logos and product placement in our society, why would an independent artist want to add to the wall of noise by selling his own stuff? The answer is evolution.

There was a time when certain characters, logos and stories were popular with a small, but passionate audience. Success and mainstream over time acceptance elevated those properties into the icons that we have today. Now they have become diluted and altered. The sense of community they created has extended so far that it covers almost everyone. Ironically, the wide appeal of a character all but eliminates the original connection the first fans had to it. (See Ninja Turtles: From Parody to Property) People inevitably seek out new characters and icons to identify with. They look for smaller, more passionate communities to connect with. The independent artists of today can create the icons of tomorrow if they decide to extend their work beyond the page and into everyday life.

The Power of Story
How does an artist create an iconic character that translates into a successful licensing property? Two of the keys are appeal and evolution. Appeal comes from good stories. No matter how unique and merchandise ready your character might be, without great stories readers, won't identify with the character, connect with other readers or feel any nostalgia for the property. Evolution comes from a consistent relationship between the character and society. Comic book icons like Superman and Batman are more than 70 years old. Each one has changed with the popular culture, and target audiences, to create identification without losing the core concept of the character. The image is what goes on the item for sale, but it is the story that makes the property successful. (See Image and Story: The Role of Copyrights and Trademarks in Comics).

I'm planning to launch an on demand independent merchandise platform for comic creators this year (See Do You Want to Create Merchandise for Your Comics?). My most successful partners will be the ones who can capture the magic of merchandise in their characters and extend their popularity far beyond the comic book page.

Have fun.
Gamal

PLEASE NOTE: THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF YOU HAVE A LICENSEING OR INTELLECTUAL PROPERTY ISSUE, DISCUSS IT WITH YOUR LEGAL ADVISOR OR CONTACT C3 atgamalhennessy@gmail.com FOR A FREE CONSULTATION. 

Do You Want to Create Merchandise for Your Comics?

Much of the popularity for famous comic book characters doesn’t happen because people read comics. Only a small percentage of the people who are familiar with Spider-Man, Superman and the Hulk have ever been inside a comic book store. A lot of exposure comes from licensed media (TV, film and video games) but just as much of it comes from merchandise (clothing, skateboards and toys0. In the past, only the major companies could support a merchandising program. But times are changing. Is the independent comic book industry ready for independent merchandising?

The Opportunity

The key elements of a merchandising program are:

• Distinctive and popular images or characters
• Design and Production
• Marketing and Advertising
• Distribution and Fulfillment
• Revenue Collection

With an independent merchandising plan, the independent creator owns the characters and images. They decide what products fit their plan. Design and production, distribution and fulfillment can be outsourced to custom merchandising companies that can produce a wide variety of goods on demand without the need for warehousing or creating bulk orders. Marketing and advertising costs can be scaled to budget, with much of the main outreach occurring online or offline at conventions or local shops. Revenue collection can be funneled through a variety of sources including Amazon, Paypal and Kickstarter. The increased exposure of the underlying property supports the comic and vice versa. Ultimately, a larger licensing company could see the potential in your work (based on the sales) and provide you with a much larger platform (and potentially much more revenue).

The Problem

There are two main problems with launching your own independent merchandising program; time and expertise. Many independent creators have day jobs, families and they spend what little free time they have on their craft. There is no extra time available to decide on the cotton weight on a T-shirt line or whether iPhone cases need to be part of the product offering. Even if they did have extra time on their hands, few of them would be interested in dealing with the legal, financial and marketing duties that come with managing a merchandise line. They want to spend their time creating the next great comic.

The Solution

I was once the general counsel for a Japanese animation company called Central Park Media. After that, I was the international publishing manager for Marvel. Since then, I have been advising private clients for publishing and new media contracts. Finally, I have also run my own independent publishing company called Nightlife Publishing for the past six years. I think the combination of my skills and the current level of DIY technology creates an opportunity for independent creators to make money from the sale of their merchandise. The main question now is ‘does anyone want this service?’

What do you think?

Would you be interested in selling a line of clothing, posters and tech related merchandise based on your comics? I am in the process of developing the business model now, but if no one is excited about the idea, I might have to sit on the idea for a while.

Let me know what you think in the comments section.

Have fun.

Gamal