4 ms·

I'm a big fan and modest (but above-average! :D ) supporter of these Humble Bundles, but it's hard for me to imagine that the potential upside on this is big en

by noahth 16y ago

I'm a big fan and modest (but above-average! :D ) supporter of these Humble Bundles, but it's hard for me to imagine that the potential upside on this is big enough to warrant a YC investment. I suppose time will tell; either way I'll be happy to see the next bundle.

kevingadd 16y ago
I share the same perspective. So far, my only guess is that their plan is to turn the 'indie bundle' into a repeatable business model, where they either get paid to run bundles for individual developers, or they turn a profit solely on the 'tip to the bundle operator' that's included as one of the sliders when you make a purchase. For obvious reasons, relying on the tip seems like a risky model, but it's possible that they could find success by charging a flat fee to developers and then collecting the tip as extra upside. Valve certainly hasn't been doing badly through turning Steam into a distribution platform for indies, so there's probably still room in that market.
loire280 16y ago
There must be more than "release Humble Bundle n+1" in their gameplan. I can think of three long-term strategies: 1. Sell the platform. They have a pretty slick payment/delivery system that could be expanded into selling other digital assets -- ebooks, music, videos. A small number of successful customers could generate profit if they're taking a cut from each sale. Nonprofits might be a good niche to sell to, since they're already associated with the charity angle. 2. Expand types of bundles. As noted in #1, games aren't the only digital asset that would work with this model. 3. The team has put together a nice product, so a few more high-profile bundles might be enough to convince a medium-sized player to make a talent acquisition.
patio11 16y ago
If you can sell more than a million dollars of digital goods twice, I like your chances at finding a scalable model. The solution space is multidimensional but I think lots of the options in it win. (e.g. Dump the tip, charge developers 30%, do it weekly, optimize aggressively, etc.)
- citricsquid 16y ago
  I disagree, this is more milliondollarhomepage than anything else. Sure, they could make money like the way Steam do (http://store.steampowered.com http://store.steampowered.com) but not with this specific model. There is legs in the bundle model, but I don't think it requires any investment... it's a 0 capital start up, they've made their name so when they approach other indie developers they can work based on their name alone. I would however seriously hope they don't do what you're suggesting (weekly) the idea has very limited usage, there are a finite number of games out there and a finite amount of interest, this works based on the publicity ("Viral marketing") and not just the idea. Take a look at appsumo for an idea, their bundles are crap now (compared to what I as an "early adopter" got accustomed to) and most lost interest. This is not an idea to milk.
  - c2 16y ago
    Time will tell either way. I suspect the end result of this will be different then either of you have envisioned. All that can be said today is that the experiment is by any measure reasonably successful and there is potential there to go bigger in some capacity.
pg 16y ago
Here's another idea with a modest upside: http://en.wikipedia.org/wiki/Altair_BASIC http://en.wikipedia.org/wiki/Altair_BASIC (The graph of startup ideas is highly connected.)
adamt 16y ago
"potential upside on this is big enough to warrant a YC investment" You make it sound like YC is like a traditional VC that requires a 10x return on a $20m investment to make their model work. Disregarding for now any 'grand plan' for further monetization beyond simple replication of this model that the company has, a YC-style (~10k for 6%) investment in a company that has already does $1.8M in sales isn't exactly bad.
lubos 16y ago
could it be that YC invests mostly in people, not ideas? I mean humblebundle team is obviously very talented, they know how to capture interest of masses and they might eventually come up with other ideas in future, start other companies etc. $5k isn't such a high price for YC to maintain some sort of relationship with founders.
jasonlbaptiste 16y ago
I think they'll do something great. What ends up becoming the big vision/winner for the company is usually an extrapolation out from something that wouldn't be repeatable+scaleable in its first form. It's kind of like normalization of business processes instead of databases.

by noahth 16y ago

kevingadd 16y ago

I share the same perspective. So far, my only guess is that their plan is to turn the 'indie bundle' into a repeatable business model, where they either get paid to run bundles for individual developers, or they turn a profit solely on the 'tip to the bundle operator' that's included as one of the sliders when you make a purchase. For obvious reasons, relying on the tip seems like a risky model, but it's possible that they could find success by charging a flat fee to developers and then collecting the tip as extra upside. Valve certainly hasn't been doing badly through turning Steam into a distribution platform for indies, so there's probably still room in that market.

loire280 16y ago

There must be more than "release Humble Bundle n+1" in their gameplan. I can think of three long-term strategies: 1. Sell the platform. They have a pretty slick payment/delivery system that could be expanded into selling other digital assets -- ebooks, music, videos. A small number of successful customers could generate profit if they're taking a cut from each sale. Nonprofits might be a good niche to sell to, since they're already associated with the charity angle. 2. Expand types of bundles. As noted in #1, games aren't the only digital asset that would work with this model. 3. The team has put together a nice product, so a few more high-profile bundles might be enough to convince a medium-sized player to make a talent acquisition.

patio11 16y ago

If you can sell more than a million dollars of digital goods twice, I like your chances at finding a scalable model. The solution space is multidimensional but I think lots of the options in it win. (e.g. Dump the tip, charge developers 30%, do it weekly, optimize aggressively, etc.)

citricsquid 16y ago
I disagree, this is more milliondollarhomepage than anything else. Sure, they could make money like the way Steam do (http://store.steampowered.com http://store.steampowered.com) but not with this specific model. There is legs in the bundle model, but I don't think it requires any investment... it's a 0 capital start up, they've made their name so when they approach other indie developers they can work based on their name alone. I would however seriously hope they don't do what you're suggesting (weekly) the idea has very limited usage, there are a finite number of games out there and a finite amount of interest, this works based on the publicity ("Viral marketing") and not just the idea. Take a look at appsumo for an idea, their bundles are crap now (compared to what I as an "early adopter" got accustomed to) and most lost interest. This is not an idea to milk.
- c2 16y ago
  Time will tell either way. I suspect the end result of this will be different then either of you have envisioned. All that can be said today is that the experiment is by any measure reasonably successful and there is potential there to go bigger in some capacity.

pg 16y ago

Here's another idea with a modest upside: http://en.wikipedia.org/wiki/Altair_BASIC http://en.wikipedia.org/wiki/Altair_BASIC (The graph of startup ideas is highly connected.)

adamt 16y ago

"potential upside on this is big enough to warrant a YC investment" You make it sound like YC is like a traditional VC that requires a 10x return on a $20m investment to make their model work. Disregarding for now any 'grand plan' for further monetization beyond simple replication of this model that the company has, a YC-style (~10k for 6%) investment in a company that has already does $1.8M in sales isn't exactly bad.

lubos 16y ago

could it be that YC invests mostly in people, not ideas? I mean humblebundle team is obviously very talented, they know how to capture interest of masses and they might eventually come up with other ideas in future, start other companies etc. $5k isn't such a high price for YC to maintain some sort of relationship with founders.

jasonlbaptiste 16y ago

I think they'll do something great. What ends up becoming the big vision/winner for the company is usually an extrapolation out from something that wouldn't be repeatable+scaleable in its first form. It's kind of like normalization of business processes instead of databases.