Navigating the world of online distribution

I just posted a fairly lengthy response to a thread over on IndieGamer.com, and I thought some people here might be interested in reading it. Basically, it was a series of questions about how to navigate a relationship with a publisher or distributor for your unpublished game. Here's the text of my response:

Before I dive in here, I should say that there are no hard and fast rules. In fact, sometimes the most succesful people are the ones that find a way to break the rules.

Also, let's get some terminology straight:
-Distributor: a company that distributes your software to a number of sites where it is sold. They handle the payment processing. Typically a Distributor will take 70-80% of the sales price. Examples are Trymedia, Plimus (edit: Plimus is is actually somewhere between a DRM provider and distributor). Most distributors offer a DRM solution.
-DRM: A way to protect your software from being pirated, payment processing is built in. Many distributors will offer a DRM solution, or you can use an external one such as Armadillo.
-Affiliate: A portal that sells other people's software, often through a distributor. The affiliates usually get a big chunk of the distributor's percentage.
-PUBLISHER: A publisher offers MORE than just distribution. This is why I wanted to go over this terminology. Publishers aren't really all that common in the online space (there are a few), since the developer takes all the responsibility for testing, PR, etc. Retail publishers will make the packaging, handle distribution, advertise, finance, and help to build other required relationships. Distributors are not publishers, and they shouldn't flatter themselves to think that they are.

That said:

Quote:

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(1) Is it always a good idea to try to push your game through portals? Most people seem to go down that route, but is it always the best strategy?

(2) At what stage should you send your demo to a publisher? Is it a good idea to send a "first look", or should you send a more complete package? As far as I can gather this depends entirely on the publisher - in some cases it's a good idea simply to ask them that same question.

(3) Which publishers to send to? And what are the differences between them?

(4) If anything, what do you need to be wary of when you submit work-in-progress demos?

(5) Later down the line - say a publisher shows interest in your game... what then? How can you get the most out of a potential deal?

(6) How can you be sure that you're not going to get ripped off? Does this happen???

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1) It depends on the game. For most digitally distributed titles from small developers, yes. But there are other options as well. Steam is an option. Focusing on retail is another. Many developers choose to sell direct from their site as a "soft launch" for a month or two before launching on portals.

2) Develop a relationship with a contact at a distributor. But once you are hooked up with someone, it can move pretty quickly. Note that if you have less of a reputation, it will help to have a more finished product (beta, say). If you have a rep, sometimes you hardly need to have anything at all. That said, I had no rep when I made Wildlife Tycoon, and Trymedia signed on before it was even alpha.

3) There are other threads on the distributors out there. The difference is in the size of their affiliate network, their personal service, the quality and breadth of their reporting tools, their reputation for on-time payments, and whether or not they are cross-platform. If you are going to one, most likely you should go to many. Gather experience with as many as you can.

4) I don't think you need to worry about cloning before your game is out. Generally games only get cloned when they sell well. That's the entire purpose of cloning. I find that people are too worried about protecting their ideas. It's more about execution. Generally I find protecting ideas is really more important from a PR perspective. Then again, no one is cloning my games.

5) Ha, this is a very broad question regarding deal-making that could apply to any business. Negotiation is about three things: relationship, information, and leverage. Develop a positive relationship with the person you are negotiating with. Learn as much information as you can about their company and their past deals so that you can identify weaknesses and when they are bullshitting you. Find some way to get leverage and use it.

6) Yes, people get ripped off. I'll let others with personal experiences in this talk about it. I've been burned, but I wouldn't say that I've been truly ripped off yet.