Treat Your Art Like An Investment

The success of Guardians (See Guardians Zoom to $94 Million Dollar Weekend) and the ongoing success of the Avengers franchise in mainstream entertainment creates a ripple effect reaching into the comics and other media. Guardians is getting a TV series (See Marvel Announces New Guardians Series). Staple Avengers characters are getting diversity makeovers (See On the New female Thor and a Black Captain America). Other Avengers characters are getting high profile spin off comics (Loki, Hawkeye and Black Widow). As the public perception of these properties rise, Marvel is putting more energy into them.

Meanwhile, other properties are getting less attention. From where I’m sitting, franchises like the X-Men are losing currency in the comic book universe. While the X franchise still has a large percentage of the books coming out every month, they are being marginalized from a story perspective. They’re not the focus of many of the tentpole events of the past few years (Secret Invasion, Civil War, Siege, etc.) and there was a major storyline killing off most of the mutants in the Marvel Universe and sending the rest of them to live on an isolated island. To top it all off, the major event of this summer is killing off Wolverine. The X-Men have been the best selling and most popular franchise for the past twenty years of Marvel Comics. All that might be changing now.

Why?

I think part of the reason has to do with lack of control and lower revenue. Marvel has far greater control of the Avengers and Guardians characters than they do with X-Men. The X-Men film license is held by Fox (and the Spider-Man license is held by Sony in a co-production agreement). Those licenses were created when Marvel had very little leverage because of their recent bankruptcy. The revenue from those movies and their associated merchandise programs, helped put the company in a position to make films like Iron Man and Captain America, but deals that made sense then aren’t as attractive now.

The X-Men and Spider-Man deals are still making money for Marvel. But from a business standpoint, it makes more sense to focus on the characters who generate more money. Changing focus means some characters get more attention, while others get less. This thinking explains part of the reason for the shift (See Marvel Shorting X-Men Due to Fox Deal)

Marvel’s strategic creative choices offer useful guidance for emerging and independent creators both inside and outside of comics. When you strip away all the fanfare, details and nuances of each tactical move, the basic idea can be expressed in three parts.

1) See your stories and characters as investments of your skill, time, energy and passion

2) Take the long view of your stories and characters when considering their business potential

3) Focus your energy on those projects that fit with your long term goals

I could be wrong about the direction of X-Men comics. This transfer of focus could be a temporary move designed to reinvigorate the franchise or regain complete control if and when the film license expires. Either way writers and artist can learn the concepts of artistic investment by watching the way the big boys play.

Have fun.

Gamal

What Message Should You Take from the GoG Success?

At this point, the internet is saturated with reaction from the monster opening weekend of Guardians of the Galaxy (See Guardians Sets New August Record). Some see this as a new plateau in the golden age of comic book movies (See Films Based on Comics are Serious Business). Others assume saturation is just around the corner. Either one of those perspectives could be accurate. In certain ways, they’re probably both right. But as writers and artists, what should you take away from the breakout success of the latest Marvel film?

Answer: You never know which property is going to be successful and you never know when.

Consider the doubt many people expressed leading up to the release of GoG (See Guardians Will Be a Flop). A film based on a group of unknown characters created in 1969 and only loosely linked to the Avengers franchise didn’t have the established mainstream fan base widespread support of Spider-Man, Batman or even Hulk. I think quite a few people saw the “inevitable” failure of GoG as the beginning of the end of the comics based movie era, especially in the light of disappointments like Green Lantern, Amazing Spider-Man 2 and The Wolverine. But when an obscure property makes $94,000,000 in its first four days of release, people take notice. When a film opens as a historic success, as part of a string of top grossing film and merchandise campaigns, the potential of comic based entertainment can’t be ignored.

All this means you can’t afford to ignore the legal status of your property either.

• Yes you might be working on your first self-published book.
• Yes, you might still be looking for a creator owned deal.
• Yes, the vast majority of comics will not become movies or TV series or anything else.
• Yes, it might take decades before Hollywood (or in the future Amazon, Netflix or its successors) stumbled upon your little book.

Even if all of this is true, can you afford to be cut off from ownership and potential future earnings? In his new book Words for Pictures, Bendis suggests you treat your story like it’s going to be the next big thing when it comes to dealing with your contract. It might be optimistic to the point of being delusional, but it is still sound advice for anyone in comics, even if your book doesn’t have a talking raccoon character.

Have fun.

Gamal

Why Comic Creators Need Lawyers

Technology has given independent artists the tools and freedom to control more of their work. It is easier than ever to create, publish and distribute your stories without a deal from the big boys. This evolution in the industry gives you more chances to get your work in front of bigger players, and gives you the potential to make deals that were few and far between a few years ago.

But this DIY spirit can be dangerous if taken too far. There is a point where it is helpful, even preferable, to do things on your own. When it comes to legal agreements involving your intellectual property, you need the support of a professional.

Disclaimer
You’ve probably already came to the conclusion that I'm only writing this post to get more work. After all, I am an attorney who represents comic creators. (See An Introduction to Creative Contract Consulting). If I scare you into thinking that you'll be cast off into the Negative Zone if you don't get a lawyer, then there's a good chance you'll hire me. To a certain extent, that's true. But there are three points to keep in mind before you dismiss me out of hand:

• The history of comics is filled with creators who lost all the rights to their characters and spent years in court trying to get those rights back. (See Newsarama: The Ten Major Creator Disputes in Comic Book History)
• Based on the survey I did over the summer (See Results of the Great Independent Comic Survey) 25% of current comic creators do not own (or they don’t know who owns) substantial rights to their books.
• Even if you decided to hire a lawyer, you may decide to not hire me

So as self-serving as this post might be, that doesn't mean it doesn't make a point that can help you.

Division of Labor
The reason you need a lawyer to help protect your rights is because legal contracts and legal principles are designed to be confusing.  The language used in contracts is circular, opaque and dense. What the words mean and what you think they mean are often two different things. The implications of certain words are often unclear even to the person who wrote the contract. Without someone there to explain things to you, it is easy to sign something that will hurt you down the line.

This is not an attack on your intelligence.  Many of my clients are a lot smarter than me. This is a question of training and experience. I’m a writer as well as an attorney (See Smooth Operator). I don't edit my novels and I don't design the covers. I hire professionals to do that. (See Judging a Book by its Cover) As an airline passenger, I don't fly my own plane. I pay the airline to supply professionals. I could learn editing, cover design and piloting, but it saves time and money to bring in a professional.

Hiring a lawyer is the same. We already wasted years of our lives and hundreds of thousands of dollars learning to decipher contracts. Why not take advantage of our poor decisions?

A Word about Costs
Lawyers are not cheap. We have to pay off exorbitant loans and many of us have expensive tastes. We normally charge by the hour, so the best way to use a lawyer is to hire one for as short a period of time as possible. If you hire them before a deal gets signed, it might cost you a few hundred bucks. If you hire one after something goes wrong and you need to go to court, that number can rise exponentially. Court cases can take years and those billable hours pile up fast. It's better to bring us in on the front end and nip the issue in the bud.

Somebody, but not just Anybody
I understand if you don't want to hire me. You might not like my style. I might not be attractive enough to be your lawyer. That's fine. I've been rejected before. All I ask is that if you're faced with a contract that involves you or your work, get a lawyer to review it before you sign it. And not just any lawyer. A criminal defense attorney might not understand the entertainment or comics market well enough to help you. Check the background of your prospective attorney, talk to your colleagues about who they use. Once you find the right one and you determine they have an acceptable level of attractiveness, retain them and put them to work. That will give you the time and the peace of mind to go back to making comics.

Have fun.
Gamal

Recommended Panels for New York Comic Con 2013

Events like NYCC are beneficial in many ways. They allow professionals a chance to network, connect with their fans, sell their work and be inspired by the work of others.

Cons are also a good source of information when it comes to managing and understanding your career. If you take advantage of the professional panels at NYCC, you have a chance to learn from people who can help you avoid mistakes and enhance your career.

This is a list of the most interesting panels I've seen on the schedule at this point. I can't vouch for the speakers or the quality of the presentations, but these are the places I plan to spend my time on Thursday afternoon. My own willingness to attend these meetings and not stand on line to play Arkham Origins has to count for some type of endorsement.

Thursday October 10th
3:15: Comixology Submit: The Future of Self Publishing
4:15: Protect It and Publish It: Meeting and Negotiating with Publishers
5:00: You've Broken into Comics, Now What?

I'm also giving these two panels honorable mentions. I won't be able to attend because of schedule conflicts, but they do sound useful.

Thursday, October 10th
4:15: Protect It and Publish It: Creating and Protecting Your Property

Friday, October 11th
Comics & Hollywood: What Creators Need to Know

I plan to write an essay about what Iearned at Comic Con, but nothing beats being there yourself if you can. If any of you are planning on attending NYCC and you'd like a meeting to discuss the rights of your book, please send an email and we can set something up. Also, I plan to be in Artist Alley on Friday. If any of you have a booth, please let me know the number so I can try to stop by.

Otherwise,  you can find me at the Arkham Origins booth.

Have fun.
Gamal

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