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Estimated eRepublik Profits

Day 1,812, 15:47 by Prince Sheogorath
Before reading, please be aware that these may not be accurate - they're based on financial data of similar companies, but each company has it's own unique setup - No cash flow data is currently publicly available for eRepublik that I know of.


This is based on current statistics you'd find on most browser games. I'm unsure of their network setup, so I'm going to have to take a guess on the exact size. (Hosting isn't too much of their expenses anyway)

Basic Estimated Costs

Servers
I estimate that eRepublik will likely run a small set-up with 1 server for hosting content (512MB RAM, 1TB HDD), 2 servers for running eRepublik (2048MB RAM, 50GB HDD) and 2 servers for battles (2048MB, 50GB HDD)

Bandwidth will likely be 2TB outoging and 100GB incoming, eRepublik operates with 1 external IP address.

Any more will be wasted resources as eRepublik isn't THAT active. (Most likely 50,000 unique hits per day)

Average Cloud Hosting Cost For Above Setup: Just under £800 per month.


Payroll:

I don't have too much information on the eRepublik team, but I'll estimate it by department. Let's pretend Alexis Bonte isn't Mr Krabs in human form and pays his employees around £1,500 per month each, I'll calculate it by department. (Pretty high pay in Romania so it should be accurate)

Community Management (2): £3,000
PHP Developers (4): £6,000
Artists (2): £3,000
Network Management (1): £1,500
CEO and other Directors (3): £10,000
Not going to include staff working on other projects

Estimated Monthly Payroll: £23,500P/M


Offices

The villa in Romania came right after a 2mil Euro investment, so I won't include that because I'm guessing it's paid for.

Spanish office likely comes to around £1,000P/M based on current local prices.

Utilities and such for both I'll guess at £700P/M more

Estimated Office Expense: £1,700P/M


Misc Expenses

Most game development companies pay for things such as pagers, company cell phones, employee benefits etc. There's also things such as Emailing services (To avoid having their mail sent straight to spam) data protection services and other little things. In total, it should come to no more than £5,000 P/M.


TOTAL EXPENSE: ~£31,000P/M




Income - Let's assume that eRepublik only takes 65% of each gold sale after taxes, transaction fees etc.

The ARPU (Average Revenue Per User) of online games varies greatly - it's just short of £7/user on games like Second Life, but games like Runescape struggle to pass £0.50.

As eRepublik is probably just above RuneScape (Thank Romper) we'll put the ARPU, just to be safe, at £0.50 if you take in to account just over half of the gold sales reaches eRepublik.

Note that this is per month

I'd estimate there's 130,000 active players each month, (100,000 less than eRepublik reports) so at the absolute minimum, eRepublik's revenue comes to £65,000/month. The maximum would be just short of £100,000/month.

So to be safe, we'll go with the very minimum:

Total Revenue: £65,000P/M


Total Profit per Month: £34,000 per month.

Note that this number doesn't include corporation tax, advertising expenses, repaying investors/creditors and re-investment into other projects.


This chart illustrates how much of the revenue is profit, and how much is spent

Yearly Profit: ATLEAST £408,000; could easily exceed £1,000,000 per year if the ARPU turns out to be higher.

This means that in 6 years, not including the time eRepublik has been operational already, all investments into the game will be completely paid off. In other words - eRepublik is a cash cow that is now being used to fund other projects. (Hence the lack of real updates, no community interaction and job postings for flash and PHP developers, yay for boring generic Facebook MMOs)



I hope you found this useful! If you have any true facts that I don't have or think something is missing, feel free to message me or post it in the comments!

Vote and subscribe for more articles like this.

Next Article: Summary of My eWorld Tour (Tomorrow, evening)
 

Comments

Bernard Hoffington
Bernard Hoffington Day 1,812, 15:52

voted

Sir Humphrey Appleby
Sir Humphrey Appleby Day 1,812, 15:57

regardless, they still fail bitterly whatever the funding

Jack Lantos
Jack Lantos Day 1,812, 15:58

very interesting,

according to this interview they have 60 employees, although it conveniently does not mention their role:
http://www.erepublik.com/en/article/interviewing-plato-the-future-of-erepublik-2026125/1/20

Prince Sheogorath
Prince Sheogorath Day 1,812, 16:03

I'm guessing at least 10-20 are working on whatever these Facebook MMOs they're developing are, the 60 seems to be inflated a little by Plato to make the company seem bigger than it really is. They probably included voluntary moderators/contributors in the number too, even the bigger MMOs don't often pass 50 employees.

Niemand
Niemand Day 1,812, 16:27

Voted! Do not forget their advertisement budget and the car with chauffeur.

Prince Sheogorath
Prince Sheogorath Day 1,812, 16:35

If eRepublik was to re-invest 75% of the profits into advertising, they'd be attracting around 350,000 new players per year. Could easily bring the game's population up again - Instead they rely on countries like eUK needing a 'baby boom' just to get by, which does their work for free.

John Rupert Miranda
John Rupert Miranda Day 1,812, 16:45

that is awesome Joshua! v+s

David Rotherham
David Rotherham Day 1,812, 17:49

wow

Kemal Ergenekon
Kemal Ergenekon Day 1,812, 19:27

Solid work, V&S.

Arfan-Khan
Arfan-Khan Day 1,812, 19:41

Voted

Brandon Inostroza IiSs Baack
Brandon Inostroza IiSs Baack Day 1,812, 20:21

voted :Y

kurojca
kurojca Day 1,812, 20:24

Interesting article, voted

Apathetik
Apathetik Day 1,812, 20:57

Back when I started playing erep, erepublik labs had nearly 4million of venture capital - dunno if they've had any since, but even so that's a huge amount of money for what has been made

Figures just for unique USA players - 12229 in sept of this year. In May they had 28,351...


anyway, have an interview with Alexis http://thenextweb.com/video/2012/11/05/erepublik-labs-ceo-alexis-bonte-discusses-gaming-trends-alien-flow-acquisition-video/

Sean MacDiarmata
Sean MacDiarmata Day 1,812, 21:59

Excellent article, they also have an office in Clontarf, Dublin. Not sure how big it is.

http://www.crunchbase.com/maps/at/companies/erepublik/2847

Knowing the prices of renting premises in Dublin its going to be quite dear.

Sigfred Zachariasen
Sigfred Zachariasen Day 1,813, 23:11

Interesting article, voted!

Sexagenarian
Sexagenarian Day 1,813, 23:52

Good work, voted

Danie Fox
Danie Fox Day 1,813, 03:35

They probably use the Dublin office to dodge taxes, everyone else does : /

The Milliner Day 1,813, 05:47

Comment deleted

GameChanger
GameChanger Day 1,813, 06:38

They ought to put eRepublik onto facebook, it isnt very flash intensive, and it would be easier. They also would get a good amount of new people if it was easier to access

Sir Hypnotoad
Sir Hypnotoad Day 1,813, 10:09

Sadly their net profit is zero. They have to spend it all on new wigs.

Would you mind calculating how many new wigs they would be able to afford per month?

Prince Sheogorath
Prince Sheogorath Day 1,813, 11:12

Around 1,200 synthetic wigs per month.

Alphabethis
Alphabethis Day 1,813, 11:29

1,500 pounds per month in Romania is like a wage of 6,000 pounds per month in UK , so the wage costs in Romania are significantly lower.

Captain Canada
Captain Canada Day 1,813, 16:06

What about Marketing staff and customer support (beyond community managers)? They also do online advertising. Also, the eRep player base is very international, and I suspect even the low end might be a challenge as so many players are from countries with low incomes. Just a few extra thoughts.

Johnobrow
Johnobrow Day 1,813, 20:20

Fantastic journalism. More please.

ZetaSoujiro
ZetaSoujiro Day 1,813, 20:33

Interesting stuff...

Kamoris KSC
Kamoris KSC Day 1,814, 01:11

awesome article o/

kiril73
kiril73 Day 1,814, 07:40

Good article V+S

oO HYBRID Xx
oO HYBRID Xx Day 1,814, 08:39

awesome! voted

Koken0
Koken0 Day 1,819, 07:19

Excelente

 
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