The Games Game

Agent Action (June 2008)

Dear Tom,

I'm head of a nascent development company. I've been talking with an agent who would rep me to publishers, but I'm not positive that the terms he's asking for are right. He paints a very attractive picture of what he can do for me, and I'm very much in need of the kind of help he offers. But some of my advisors insist that he's asking for too much up front, and too much of a cut of any contracts he can get me. The contract he wants me to sign even says he gets a cut of deals I make without his help.

I looked long and hard to find an agent. Several of the best game agents out there turned us down, saying we didn't have enough experience to make it worth their while.

So what's the deal, are there other agents out there who can help me, why is this so hard? I mean, okay, so maybe none of our guys have more than a couple of years industry experience individually, but when you put us all together, we've got almost 7 years experience between us.

A. Nonny Muss

Hey Nonny,

You shouldn't be paying an agent up front. No reputable agent in the game industry will ask you for money up front. They always get paid on the back end - after they get you a contract. And this very fact explains a couple of things, one being good and the other being bad.

1. It explains why it's good to have an agent. Not only does he not cost you money up front, but he's motivated to make the sale (and of course, what he's selling is you and your company). A good agent works really hard to get contracts for you - because if he can get you a deal, he gets paid.

2. It also explains why it's hard to get a good agent. Good agents are very picky about what clients they take on. If your company doesn't have much of a track record, it's hard to get you a deal, so the agent has to work even harder, and his chance of getting paid is reduced.

When I went freelance a few years ago, I toyed seriously with the idea of being an agent. It didn't take long to realize that it'd be very easy to get clients. A lot of them. But then to get any of them paying projects would be a huge amount of work. And it would be a delicate balance if there were multiple clients. There could be liability issues if one client gets a project and another client believes he should rightly have gotten it.

I hope that slight digression helps you see things from the agent's point of view. The point is that it's completely understandable that agents are very picky about what clients they sign.

My recommendation is that you pass on this particular agent who asks for up-front payment and steep advances. Keep looking for another agent. If the good agents won't take you on, it could mean that your company simply isn't ready yet. Forgive me if this sounds harsh, but I think you guys formed your company before you were fully cooked. I see too many people forming companies these days before they've built up enough credits in the industry. Consider the possibility that this might be the situation in your case.

For more detail on arrangements with agents, check out part 1 and part 2 of Jim Charne's treatment of the topic in his monthly Famous Last Words column.