5 ms·
So let's look at this from an inventor's perspective: Feeling exuberant, I know Quirky will vet and accept my idea. According 109 of 823 accepted projects are
by codehero 12y ago
So let's look at this from an inventor's perspective:
Feeling exuberant, I know Quirky will vet and accept my idea.
According 109 of 823 accepted projects are on sale, so I have a 13.24% of getting my first dollar.
Royalties are paid out to contributors on 10% of gross revenue.
The idea originator automatically gets 40.5% of this revenue.
So I would get a 4.05% royalty.
Products are approximately $30, so my per unit royalty is ~$1.20
Let's say my cost for well thought invention idea is $1000 (includes time, drawing, cardboard prototypes, etc).
Looking at the spreadsheet attached to the blog the average total units sold per product is 28378.
However, this is a heavy tailed distribution, so we'll make two estimates (from eyeballing the spreadsheet, I divided the total units sold range into 1/3)
a 33% chance they will sell 500 units
a 33% chance they will sell 5000 units
a 33% chance they will sell 50000 units
So expected sales will be
$1.20 * (1/3 * 500 + 1/3 * 5000 + 1/3 * 50000) = $22000
So my expected value on idea submission is
(1 - 0.1324) * -1000 + 0.1324 * (22000 - 1000) = $1912.80
So I can expect to make about $2000 for a product idea on Quirky.
Don't hold back any criticism on this analysis.