Here’s the first draft of the cover artwork.

Here’s the thing — we’re now at the point where we have a greater monthly readership than many so-called “real” comics. Including print-published comics from major companies. Take a look at the list below to get an idea of some of the comics we “outsold” in January (according to Diamond’s sales figures). Now, I’m not doing this to rub it in. I just want to point out that webcomics are building an audience that rivals print comics. Even print comics from publishers like IDW, Image, Dark Horse, Marvel and DC. Also, for those who tend to focus on pricing ($3.99 vs. $2.99) I’d like to point out that many of the comics listed below ARE priced at $2.99. Also, look at the number of licensed properties here. The Simpsons, True Blood, Transformers, G.I. Joe, Farscape, Torchwood, and Resident Evil are all represented here. As well as perennial heavy-weights like Savage Dragon and Wildcats.

But is this new pricing really advantageous to the consumer? I’d argue that it isn’t, at least not in the long run.Since the inception of Direct Distribution Marvel, and to a lesser degree DC, have always used their position at the top of the market against each other and in particular the independent market. They do this by flooding the market with “must have” products during those period where they find themselves threatened by ascendant independent publishers. By “must have” products I’m actually referring to the attitude that many comic store owners have that anything Marvel and DC produce are “must haves”, essentially their core business. Your basic comic shop owner lives or dies according to an algorithm based on shelf space and turn over. X-Many (if you’ll pardon the expression) Comics fit into Y-Much feet of shelves and each “slot” is turned over Z-Many times each month.  Comics with higher guaranteed turn-over rates, like much of Marvel & DC’s product (with their higher name recognition) are stocked in greater numbers within each slot, as well as across a greater number of slots. This marginalizes original content (NOT Buffy, Transformers, Terminator, Lady GaGa, etc.) from independent publishers.

In the past the marketing strategy of Marvel and DC was to flood the retailers with new options. Fill up more shelf space and eliminate the competition. Even if the new product didn’t last, the big two could outlast Independents who would be forced to cancel their marginalized titles, or go out of business entirely. Predatory, but effective.

Once their titles hit $4, this strategy ceased to become as effective. Retailers, looking at the pricing on these new titles, began to cherry-pick even their Marvel and DC titles. The new strategy became “events”. Crossing over storyline into 12 or 15 different titles, forcing the retailer to carry them all, forcing the fan to buy them all to get the whole story. While this bastardized their trade-paperback lines (people get pissed off when they can’t get an actual complete storyline in a trade — I know I do)  in the short term it boosted monthly sales and once again gave the big two an competitive edge over the independants.

Now, however, as event-fatigue coupled with high prices has forced fans to be choosier, El Dos, must find a new marketing trick to regain their advantage. Enter the price wars. Cutting their profit margins is a brilliant marketing move for Marvel and DC. While they both suckle at the teat of billion-dollar corporations, most independents cannot hope to compete with that pricing. Not in the direct market anyway. Understand that in the direct market, a publisher is getting as little as 30% of the cover price for all their hard work and expense. On a $4 book, that means a publisher like me gets about $1.20 to cover paying the talent and printing the comic. Buffy the Vampire Slayer was the top selling independent comic in August with about 37,000 copies sold. Image United and Walking Dead were the top two original concept comics in that month with both in the 27,000 range. Let use 27,000 as our best case scenario, shall we? Here are some sample cost breakdowns on a 32 page comic (with 22 pages of art & story) —

Story — $2860 ($130/page — a realistic page rate for a publisher like Image/Dark Horse)
Art — $5500 ($150 pencils/$100 inks)
Editorial/production — $2200 ($100/page)
Overhead — $1560 (10% of the combined creative costs above — a good rue of thumb for companies with 10 or more monthly titles)
Printing — $8100 (30¢ per book)
Advertising offset — $2500 (if you have ads in the book)

Total Cost — $17,720 or about 65¢ per book.

Profit Margin on a $4 comic — 55¢ per book

Profit Margin on a $3 comic — 25¢ per book

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Now let’s look at a more realistic scenario. Irredeemable (the next highest selling original comic) is selling about 12,000. Let’s look at likely figures —

Story — $2200 ($100/page)
Art — $3850 ($100 pencils/$75 inks)
Editorial/production — $1100 ($50/page)
Overhead — $1060 (10% of the combined creative costs above )
Printing — $4920 (41¢ per book — the less you print the higher the cost per book)

Total Cost — $13,130 or about $1.01 per book.

Profit Margin on a $4 comic — 19¢ per book

Profit Margin on a $3 comic — is nonexistent even with the reduced page rates and overhead.

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So there is no way, even for a company like Boom to actually make money on a $2.99 book. It can’t happen, not with the current purchasing. While you could argue that a reduced price might lead to more sales, how much more? 20,000? Even at 20,000 (which would make the title one of the top selling original independent books) their total profit is still virtually nonexistent because the increased printing costs for the extra 8,000 books eats up the savings. We get right back to about 25,000 as the baseline for making any money at all.

Let’s put that in perspective. Sweet Tooth (a supposed fan favorite) is selling under 10,000. Astounding Wolf-Man (by Robert Kirkman) is selling under 7,000. Terry Moore’ Echo is selling less than 5,000, as are Gen 13 and Steve Rogers; Super Soldier.

You can argue with my numbers all day long, play around with the figures to your heart’s content (notice I left off lettering and coloring), but the cold heard facts are these. DC and Marvel’s new price structure is a Cyclops eye-blast aimed at the heart of the independent market.

Ultimately, that will mean less choice for the consumer. Independent publisher will have to cancel titles to survive and some will cease to exist all together.  In the end, that’s a bad thing. If DC really wanted to “… save the artform.” as Jim Lee stated, they’d focus their energies on revitalizing the direct market. Expanding the opportunities for ALL publishers, not forcing them out of the market entirely.

Belter will be written and illustrated by Orion the Hunter scribe, Clifford VanMeter. A 20-year veteran of the comics and game industry, VanMeter has previously done work for Marvel, DC, Image, Milestone and Valiant Comics, as well as illustrations for games such as Deadlands, In Nomine, and BattleTech. “This is my first comics illustration in a decade,” said VanMeter. “I’ve been very happy with the work thus far and a little bit addicted to drawing daily again. I’m already 15 pages ahead on the pencils and inks, so I don’t expect the weekly schedule to be a problem.”

Belter is a science fiction crime drama that follows Detective Constable Conlin O’Donal. An unusual kind of hero, O’Donal is a broken man prone to crippling panic attacks. In this first story arc he fights to once again become the man he once was. “O’Donal’s is a story of redemption”, commented VanMeter. Though set in the same “universe” as Orion the Hunter, Belter runs completely counter to Orion in most respects. Where Orion’s story is set on the frontiers of the Federation, Belter takes place on Ceres Station, a gritty, urban environment within the confines of a Terran colony in the asteroid belt. While Orion the Hunter has some of the feel of the modern space western, Belter has the noir overtones of classic detective fiction.

Belter will be collected into print volumes and a trade paperback edition in the same way Orion the Hunter has been since its release. Arctos Comics has also released a special 12-page print preview in black & white. VanMeter also intends to auction off each page of original artwork as that week’s page is posted. “We’ve added auction capability to the site, and moving forward we’ll be offering Belter as well as other pieces of original work,” he added. In addition to the cover and a special pin-up of the print preview, the auction site currently also features original art from Larry Stroman done for the print edition of Orion the Hunter Part 2 (of 4).

Back when we were living in Ferndale, I discovered that we were actually close to Larry Stroman. I’m a huge fan of Alien Legion. Right from it’s earliest days. When I started buying comics again the first things I bought were a trio of trade paperbacks of the early comics. So I contacted Mr. Stroman and arranged to meet him in person to negotiate a deal for a pin-up for Arctos Comics.

This was in February. We met and I plead poverty and Detroit solidarity and he agreed to cut his normal $300 fee in half and take $150 for the piece. I felt given that he was cutting his fee, I should pre-pay him for the work. So I gave him a check then and there for the full amount — $150.

Now let’s be clear on this. I didn’t commission a sketch, or a fan piece. As editor/publisher of Arctos Comics, I commissioned a professional artist to produce a piece for publication. I never intended or expected to get the original artwork. Just the publication rights. It was a professional transaction and I was very clear about how and where the work would be used.

That was the last successful communications I’ve had with Mr. Stroman. He took my check and has seemingly ignored every overture since.

We agreed that I’d shoot him an email in a couple of weeks to see what his progress was. I actually waited about four weeks before I did so, but I got no response. I’ve messaged him every few weeks over the course of the intervening EIGHT MONTHS without any response. I tried emailing him directly, as well as through his website. Still no response. I posted a few innocent, “Call me Larry.” messages on his FaceBook wall. No response. I tried phoning. No response. I sent a registered letter to the address on his website and… You guessed it. No response.

After these many months of trying to contact him and being completely ignored, I’ve stopped asking about the artwork and have asked for (and most recently demanded) my money back. Still no response.

Today, in a last attempt to settle this in some amicable fashion, I posted on his FaceBook wall something to the effect of, “If anybody knows how to get hold of Larry, please message me. He and I have some issues we need to work out.” I made this latest attempt to get things resolved prior to Detroit Fanfare. He’s not been announced so far, but it’s in his back yard, so who knows.

His response? He un-friended me so I couldn’t make any further wall posts. I can only see this as an overtly hostile action. Deliberately cutting off any further communications because he has no intention of honoring our agreement, or returning my money.

At this point I feel my only recourse is to go public in what is frankly an attempt to shame Mr. Stroman in to behaving honorably. Into returning the money he’s taken under apparently false pretenses.

I would assume that this behavior is reserved for small publishers. I doubt if Mr. Stroman would behave this way with Dark Horse, Marvel or DC. Perhaps he is under the impression I wouldn’t risk “outing” him this way. That I might be intimidated should his friends in the industry rise to his defense. To them I would say that all I’ve done here is state the facts as simply and clearly as I am able to.

I encourage anyone who knows Mr. Stroman personally, or still has access to him through social media, to let him know about this post. Perhaps add something of your own opinion regarding this kind of behavior. Whatever that might be.

It’s a shame, really. I was looking forward to the new Alien Legion comics. I guess I won’t be buying those now.

[wpauction id="3" /]

That’s right, a comic book rock band. It is certainly a very specific genre niche; we spent the day listening to songs like “The Call of the Green”, a song about Green heroes, and the full version of the Firefly theme song, “Ballad of Serenity”. We of course got to talking with them (Cliff is very verbose), and after a couple of hours we made an exchange. They got one of those gorgeous (hint hint) printed editions of Orion the Hunter, and we got their debut album “Slight Advantage”. They loved Orion so much that they offered to make us an Orion the Hunter theme song. We thought this was a brilliant idea.

After several weeks of back and forth, we have finally received the final edition of the theme song, which you can listen to right here!

Orion the Hunter by Wednesday Heroes

Also feel free to visit the Wednesday Heroes’ website where you can listen to more of their music and perhaps even buy one of their CDs. Nerds gotta stick together!

Wednesday Heroes

- Caitlin

This actually started over on FaceBook as an answer to a fan who mentioned having his local comic shop order his copy of Orion the Hunter Part 1. Since it’s apparently not clear, let me make it so. with the exception of a handful of comic shops that are purchasing directly from us, you are about as likely to see Orion the Hunter or any of our future products in a comic shop as you are likely to see Elvis (the real Elvis — the dead one) there.

So let me get this out there, right off the bat. I love comic shops. My friend Brian Kelly runs a terrific shop in Detroit, and we have a great one called FanFare here in Kalamazoo. I frequent comic shops, I buy most of my comics in comic shops. I LOVE comic shops.

So why aren’t my books going to comic shops?

Well, we are and we aren’t… but I’ll get to that in a minute. First let me answer the crux of the question. Why aren’t we chasing tradition retail (what is in our industry called “Direct”) distribution.

Let’s start by looking at distributors, taking Diamond as an example of how direct distribution works. To start with, I have to give them 60% discount to get them to carry my book at all. Another 2% or more if I want to encourage them to pay in less than 30 days. Another 2% to pick up my product if I’m using a printer they pick up from, or I have to pay to ship to them.

Because neither Joe or I are “names” in the business, I ‘d also likely need to include a few hundred finished books in Previews so I can convince the retailers that we’re not creating crap. This is just about the only way I’ll make the minimums required to even get a purchase order. So after I’ve paid the printer and paid for promotional materials, I’m already deep in the hole.

Another issue (if you’ll pardon the expression) I face is that retailers make money by clearing shelf space and rotating in new product. That’s what keeps most comics being treated like a periodicals. Most don’t reorder and if they do they’ll likely have problems getting those reorders filled. After the first month or so, they’ll sell of the remainders at a loss just to clear the shelf space. We’ll see a precipitous drop off in orders down to zero within a few weeks.

Moreover, we need to expand our market beyond comic shops and comic fans. There are broader markets out there that might find Orion the Hunter appealing. There’s the international market (about 1/3 of Orion the Hunter’s readers are outside the U.S.). There’s Science Fiction fandom, anime fans, and a number of other cross-over niches that are bypassed entirely by too much focus on retail distribution.

Now all that may sound like a criticism, but it really isn’t. It’s just reality, the reality of how direct distribution works in our current day and age. It just is. If I want to play that game, those are the rules I have to play by.

Or I can try to make a new game, change the rules. Not break them, but certainly bend them in my favor. I can sell them direct from my website. Not treat my titles as periodicals and continue to sell them for as long as there is a market. The difference comes down to this. I sell hundreds or thousands of copies quickly and make pennies on each individual copy, or  I sell them a few at a time, but make more per book but accumulate sales more slowly. Instead of selling thousands all at once, we sell a couple of thousand over a year’s time. I (and my collaborators) make a lot more money, but take longer to get paid.

Look at the chart. The blue bars represent distribution to comic shops. The green bars represent projected sales from our website. Assuming we were in Previews in March, we actually see our sales (and get paid) in June. One big burst, then trailing off to nothing.

On the other hand, web sales can continue to grow as the comic and website build. audience. The bigger the audience, the bigger the potential sales growth. Given the nature of the web it is possible to continue to build audience almost indefinitely. We don’t need tens of thousands, we just need a couple of thousand true fans. That model allows us to actually make a living doing what we love to do and what we are good at.

So there’s the rub, for me at least, with direct distribution in the 21st century. I’m convinced that we have to create alternatives if we as small publishers are going to thrive, not just scrape along. The new paradigm is about  building audience, not just pumping out product. Creating fans by telling compelling graphic stories. The new paradigm is also about patience. The hare has had his day, it’s time for the tortoise to take a turn. I’d rather have three works I’m proud of, than publish a hundred mediocre comics a month.

David Alexander McDonald, our 1000 fan wins a black & white & red all over t-shirt with free shipping and a cameo appearance in an upcoming episode with lines.

Raymond Jacob, Scott Schlazer, and Sean Woods all win t-shirts.

Sketch Maven

Its going to be a busy month round the ol’ homestead.

Here’s hopping we get some new readers off’a it.

I’m not a whiner, nor usually a beggar, but I figure best be honest about what’s going on and hope. Like a lot of comics guys getting their own thing rolling, I’ve been self-funding Arctos Comics from my day job as a web and graphic designer. I live in Michigan, those of you who pay attention to the ecomnomic updates coming from Michigan may see where this is going.

I got laid off today.

The biggest casualty of this layoff is going to be Belter, which is almost ready to launch. That will be postponed indefinitely. I plan to take the five penciled and inked pages I have as well as the 20 pages of script and offer them around to see if I can come up with a publisher. Wish me luck on that. Karl and I are both willing to jump back in and finish this work if we can find an alternate funding source.

As for Orion, again, I need help. I don’t want to ask Joe to go without payment for all the hard work he puts in. I’m already paying him far less than he’s worth. He’s far too professional in both ability and attitude for me to ask that of him. I’ve been there. Wanting it so bad, loving what you do so much, that you are willing to let yourself be taken advantage of. I won’t be the kind of publisher that does that. I’d rather be a Wal-Mart greeter.

So I’ve added a donate button to the site. Hopefully some of you will feel inclined to help keep us going. Not to pay me, or pay for my time. God knows I’ll have enough of that on my hands for the foreseeable future. Every penny will go to the site and to paying the artists. On that you have my guarantee.

Same thing for advertisers. Our ads keep us going, click a few and you’re helping support what we do. Same for Digging, Tweeting, FaceBooking and Stumbling. Those buttons help bring us new fans. Spread the word if you like what we are doing.

So click an ad, buy a t-shirt, tweet, Stumble or Digg this article or the comic, or use that donate button to throw us a couple of bucks.

Thank you for sticking with us. I hope to have better info soon.