2022 Quarterly report and Plan for 2023

Hello, all patrons!

Here is a this year's plan from last year and see what was followed and not done. 

Another year almost has passed. I would like to introduce myself again and tell you about next year's strategies, plans, and goals.

Nutshell Atelier consists of two people, me and Shuarin.

We are both 3D modelers living in South Korea, and I am in charge of managing and modeling. And Shuarin is currently helping me from time to time while working at the company.

My lifelong dream is to create a game with IP that players can participate in together. I am just a tool, and I think you are the true creators. Sometimes, when I look at the works on the discord, I see works with brilliant ideas. I want to make a game with our stories.

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First of all, it's a report on sales. 

The last quarter is when sellers like me harvest everything. It was pretty low than I thought. It was probably high expectations as it sold well last year. To analyze the problem, there was a big change in the site that exposed my store during MMF's sale. In the case of last year, there were few participants, so most of them were placed up on a first-come, first-served basis, so they did not have to scroll down a few times, but from this year, the rotation was applied and the exposure was sharply lowered. Because of that, it became difficult to get the same sales results as before. And the sale period has been pretty much shortened. This is quite a blow.

And the total revenue is about $30,000. I earned as much as I earned when I was in the company. But in terms of sales, it was 40% compared to last year, and considering the exchange rate, it wasn't a bad income.

I'll work harder with a better work next year.

I also uploaded sales by individual works. Valkyrie and Orc were the best individual sales this year. 

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About the production…

As for the production process, we will stick to the current approach.

We will continue to create voting results and topics for long-term subscribers.

And regarding the finished work, we plan to sell it in three ways to increase sales. The current 1:20 version and the 1:16 version used for frostbite (it will be cut more than the 1:20 version) And it's going to be a bust version. The bust version may or may not be produced depending on the pose.

And I'd like to try the diorama that I planned for this year again. I will probably make various props by making it as an interior rather than an exterior. 

lastly, I'm thinking about making Zoetropes(jumping frogs)/LOL invade art. The sculpture is stationary, and there are emotions that are hard to feel inside. So what I want to try is the Zoetropes. This is still under planning and I don't know when it will be implemented.

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About the management.

Here's the current production and deployment process.

1. After deciding what to make by voting, it takes about 3-4 months or 5-6 months even if the topic is selected because of the accumulated work.)

2. Find and produce materials (usually 2 to 3 weeks, depending on the subject, it may take up to a month)

3. Products are distributed through Dropbox, and Redeem code is provided through MMF to subscribers this month.

4. Upload to various sales sites. Distribute requests for files to subscribers if they are requested at the same time.

I'm going to keep the current process and grow it further.

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About finance.

The size of sales has grown compared to last year, but it is far more than I expected. 

The income has increased, but the surplus is similar to last year because office rent and maintenance expenses are spent.

What I want most at this point is to hire people to increase productivity and shorten the release date. But as you can see from my sales, I'm not making enough money to hire anyone. 

So there are two ways to come up with it. 

The first added an annual payment system to Patreon. You can pay about 15% cheaper. In the long run, it might be a loss, but I added this system because I thought it was a necessary way to get money in the near future.

The second is to proceed with the commission work. Apart from the work I am currently working on, I would like to proceed with the work at my personal time. It was quite difficult to calculate the cost of the work. And I'm going to explain this.

When I went to a game outsourcing company, the production price of the character costume was $3,000 to $4000. When face and hair were added, it received almost 1.5 to 2 times the price. Usually, the daily wage was calculated to be around 150-200 dollars, and it was a condition to work for 20 days. 

This is possible because the profit structure of the game industry is earning through Loot Chest. As far as I know, simple figure models like ours can be priced from 1/2 to 1/3 of the price. I understand that if you ask India/Southeast Asia, where prices are relatively low, it will be cheaper by $300 to $800 per figure modeling character.

Personally, it depends on the complexity of the character you want me to make, but I'm currently thinking of between 1200 and 1500 dollars. The working date is usually expected to be between 15 and 30 days, which is a condition that all rights are transferred. All files and work processes will be handled in private and are subject to transfer of all rights and work upon completion of the work.

If you have a picture with an exact back and forth, I will make it 100 to 400 dollars cheaper. Instead, if there are any additions that are not in the picture, we will charge you a separate fee depending on the complexity.

Finally, I will charge 70% to 50% of the final cost if we give up the exclusive rights and the producer also sells digital files. I think this is of course a risk to each other. I don't know if the requested work will be sold or not, so I'm going to get the minimum work cost.

Most of the money earned will be used to hire people and speed up the release of the work.

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After spending 2022 and welcoming 2023,

2022 was a year when something didn't go well. Personally, it was a sad year. 

I want to increase the size of the company by 2023. I want to go beyond Atelier and become a factory.

I feel that the goals written above are too unrealistic, but I will do my best to achieve them.

Thank you always for your support and have a wonderful day!😘