A Sound Bid

How An Audio Quote is Calculated
By Aaron Marks
Gamasutra
January 8, 1999
Vol. 3: Issue 1
A SOUND BID
Introduction

Questions to Ask Before Bidding

Advice for Game Developers Seeking Audio Help

How An Audio Quote Is Calculated

Contract Payment Options
Computing the operating costs to make a competitive bid is not as simple as the sound artist saying, "Hey, I want to make X dollars an hour!" Initially, we determine whether a project will increase our professional notoriety, whether it is a standard "resume project", or whether it will simply help pay the bills without any of the former benefits. Sound artists next consider what the project will require, and factor those costs into the bid. Finally, fees (the cost of our time and expertise) will be factored in. Sometimes sound artists may break down these fees in the bid, to include the following:

  • Creative fee. This is the charge for actually creating, composing, recording and arranging the music and sound effects. It is based on the time it takes to create a minute of music or a single sound effect and whether or not the work will be licensed for single use or will be bought out. The full buyout option is standard for most games, but sounds or music used on web sites or in Java applications may be licensed for exclusive use for a period of time. The licensing option is often cheaper for clients, but the sound artist then retains the ownership rights and is free to license out the sound again after the contract period has expired.

  • Studio fee. Renting an outside studio can be expensive, especially when a full orchestra or live band is involved. This fee covers that expense. It also covers the costs, maintenance and general operation of the composer's or sound designer's in-house studio. After factoring in equipment payments, insurance, utilities and general maintenance requirements, an hourly rate for the use of these facilities is calculated. These days, however, most audio creators work out of their homes and can keep this cost down.

  • Talent fee. The performances by musicians and voice talent are included in this fee. Some music composers may charge to play instruments on the tracks, others will include their part in the creative fee. Figures will vary based on the caliber of talent requested. Outside talent - especially virtuosos and/or famous players - will increase this price accordingly.

  • Media and material costs. Tapes, floppy disks, recordable CDs, shipping and any other costs incurred while recording and delivering the final product are covered in this fee.

  • Hourly wage. A unique formula calculated using the sound artist's salary requirements, based on the available billing hours for the year, the cost of healthcare and other benefits, vacations, holidays and retirement. Because many sound artists are self employed, this fee is our salary.

  • Kicker. Also known as "fudge factor" or "margin of error", this is an additional fee to cover any unexpected problems or minor adjustments to the project. Because the game development process constantly evolves and frequently there are changes to a game's audio requirements, this fee covers the changes without having to renegotiate the entire project. Reactions by clients to the kicker vary, but the time saved from having to renegotiate a contract is priceless, and it is always more palatable to charge less for a project rather than more. If the project expands far outside what was originally agreed, renegotiations would, of course, be necessary.



Contract Payment Options Next Page