I am most likely going to be shunned for asking this but I am really wondering. Besides the initial cost of buying a program to develop these planes (with the exception of gmax) what kind of money do you put into your products? I mean ya you put time into them and all that but is there actually any money involved? Basically you aren't lsing any money by these "pirates" stealing your products. I understand why you would be angry and i in no way promote pirating but i have been wondering why this is such a sore subject. When it comes down to it they are all just files aren't they?
You won't "get it" until you begin to grasp the relationship between the economic concepts called "Time Value of Money" and "Opportunity Costs."
http://en.wikipedia.org/wiki/Time_value_of_money
http://en.wikipedia.org/wiki/Opportunity_cost
These are rather advanced concepts, but I'll briefly attempt to draw out the most essential relevant concepts as they relate to the issue of third-party content creation for flightsims. But, please do keep in mind that this represents a gross oversimplification...
Beginning with the concept of "opportunity cost," consider that
everyone must make a decision on how to spend their time.
As a 3d modeler and gauge systems programmer, I have to decide whether the
best use of my time is to work on "speculation" (that is, invest my time for some potential future income based on sales), or if I should be a wage-slave for some company, thereby earning a steady and predictable paycheck as well as possible other benefits, such as health insurance, employer 401k retirement contributions, et cetera.
As I consider each option, one of the tools I can use is the concept of "time value of money." That is, given an investment of X hours in either scenario, which of the two will ultimately result in higher earnings over a period of time.
With a fixed, wage-slave use of my time, it is quite easy to forecast a reasonably good approximation of my yearly net-net, because a lot of reliable data is available to support such a calculation.
In the case of an independent, future earnings based model, such as I'm currently engaged in, it is far more difficult to calculate such a number. A large part of the "final answer" is predicated on quite a few "guesses" on the values involved.
In short then:
An
investment of X hours gives me the
opportunity to earn a
value of Y dollars over a period of Z
time.
Working as a wage-slave the investment of 2000 hours/year at $20/hour + benefits will equal some calculable number net-net disposable income, which for sake of example we'll call $45,000 (after taxes).
Now, I need to guesstimate what the potential net-net income from independent work will yield given the same investment of time over the same one year period. What I have to do in this case is work backwards, assuming that I desire to at least
equal the same net-net income, and then calculate the number of sales that will be required to achieve that goal. Obviously, there is a large element of
risk involved, since I'm working with so many unknowns!
It's the
difference between the two calculations which determines the dollar value of what is termed "opportunity cost." Whether I wish to
pay that cost is yet another decision I must make, which is of course always purely subjective, based as it is on such indeterminate notions as whether I enjoy what I do as an independent contractor versus being a wage-slave.
Where all this ties into the topic of "piracy" is that each such act potentially adds to my total "opportunity costs" because it represents an unrealized sale, hence "loss of income."
The reality is that there is also
another unknown factor at work here, and that is simply this: does each act of "piracy" really equal a "lost sale?"
I believe an honest answer is no. There are without doubt a large number of such individuals who would
not have purchased my product at
any price. For the sake of my own internal calculations I'm assuming at best that perhaps five percent of all "pirated" downloads represents an actual "lost sale." Even at that conservative guesstimate, it does represent a large number, all things considered.
Finally, let me provide some "real numbers" as a basis of comparison. For the fiscal year 2008, I've already established the value net-net as a wage-slave. Here this is the actual comparison between what what could-have-been versus what actually transpired:
1) wage-slave = $45,000
2) independent = $14,100
Therefore, my
opportunity cost was $30,900
...and people think we do this for the money! :faint: