When Fig enters into a licensing agreement for a game, the general idea is that the developer will finish making the game and Fig will partner with the developer to market it and get it into the right distribution and sales channels. Developers and Fig will both be promoting and marketing the game. So, when we talk about accounting for our costs, we mean the amounts Fig plans to spend to publish and promote that particular game in an effort to increase sales receipts, and also amounts to run our business. At the same time, we will strive to minimize what we hold back from 100% of sales receipts, for a good reason – our investors want as much of the 100% as we can give them, and if we want our business to succeed we will have to please our investors.
We’ve written a blog posting that goes into further explanation of the thought behind our minimum dividend rate.