WMD payments
Hello all
First of all sorry for the delay in getting this post up, I wanted to make I got as much concrete info as possible.
The first thing to say is of course a HUGE thank you is owed to all of you for your support over the last couple of years.
Regular visitors to the forums will know that the game took longer, was more challenging and cost more than we’d ever expected but we think the end result is more realistic, more enjoyable.
Now therefore is the time to update you on what that means for WMD Members…and its good news.
The first thing to say on that is that the game is doing well. You can help it do better of course by telling your friends, family, work colleagues… and random passers by on the street … but what that means is that we will be paying our contributors well for their contributions. In fact as recognition of all of the delays we are going to pay you some of your fees upfront, over and above those actually earned to date.
The end result is that the payments which will be made on or around 28 August will be at a rate of 110% of the amounts originally contributed, i.e. that means you are making a 10% profit immediately, as we are paying you before we actually receive all of the funds from Bandai Namco. There will of course be further payments in later quarters. We fully expect the profits to be substantial for everyone as we’ll be paying them for years!
The payments will work as follows:
Fees are paid to Members once we have collected the applicable revenues (of course). The royalties are paid to us on a quarterly basis in arrears.
According to the WMD Terms
(http://wmdportal.com/wp-content/uplo...Conditions.pdf), if you are a member we will pay you a proportion of the “Revenues” (which means 70% of the total sums actually and directly received by SMS in respect of sales of the PC version that was funded using WMD (less applicable taxes, credits etc).
That proportion is your “Fees” and is determined by your WMD Position and the WMD Member Terms.
We won’t know what the final value of first tranche of revenues are until mid July, which is when Bandai Namco (who are the distributor and publisher of the Game) are due to report to us. However we have some preliminary figures already. When we have the final figures we will then have to invoice Bandai Namco and wait for them to pay. Therefore we don’t anticipate getting any royalties until late July / early August.
Our payments to Members will then follow on or about 28 August– again as per the Terms - its necessary to do it that way because, well there is a lot of work to do to pay the fees to several ten’s of thousands of people.
We will notify you of the total Revenues earned and received by us and the Fees due to you by the end of the month following the end of each calendar quarter (i.e at the end of August for the second quarter) and arrange for payment within 7 days after that. This timeline is determined by the information flow we receive from Bandai Namco. The amount you get is potentially subject to a 10% as a retention in respect of refunds and credits etc – but you’ll get that (or what’s left of it) later.
In addition to the Fees explained above, we also intend to allocate 50% of the profit SMS made from the console versions (Console Profits) to supplement the Fees, in line with what was voted through the forums.
Just to clarify, the fees we are paying in respect of Console Profits are not something that we have an actual legal obligation to pay and are not strictly part of the “Fees” due from WMD. but we appreciate your support and want to give more back than we need to.
The console versions were produced using of a lot of third party investment and, apart from anything else we need to repay that investment. However, the PC Revenues and the Console revenues are entirely separate and no part of the PC Revenues will be cross recouped towards the console investment.
That said, with so many paid up members in (what we think is) the most inclusive and open development platform around, we want to give you some upside on the console versions and so we want you to have a piece of the Console Profits action.
As mentioned above we are making some up front fee payments in the first quarters payments.
We are still offering everyone / anyone their money back if they’d prefer – only less the value of the benefits they have already received such as the price of the game they have received and, in future, the amount of any Fees they have had.
Finally , almost, we have already launched our next crowd funding project that you can also get involved in
http://pcars2.wmdportal.com
In the meantime please check that you have given us the right details to pay Fees over to and, once again, thanks for your support.
Mark
CFO