Evil Characters are a critical component of many conflicts. Unfortunately, they suffer the same problems that good guys suffer from: too much special powers, not enough character.
Sauron, the chief antagonist in Lord of the Rings, suffers from the same problem. Admittedly, there is only so much evil that a disembodied flaming eyeball could do, but he really wasn't done that well.
In contrast, Darth Vader was done very well.
How can we write evil characters that are both evil, yet dangerous? It's actually rather simple.
First off, don't give your evil character any frilly accessories. This can wait until after you've defined his character. Yes, weapons, clothing, and fortresses are accessories.
A real evil character doesn't need any intimidating gimmicks to be dangerous. An evil character is able to be evil whether or not he has a knife or the Death Star. As a test, take away these gimmicks. If you think your character is still sufficently evil, get a second opinion before continuing.
To build an evil character, let's start with a good character.
You see, most evil characters start off good. Some of the greatest mass murderers of history started off from humble origins and did murder in the name of the better good.
The difference between a good and evil is how far a person is willing to go to accomplish what they want. Heroes usually have some sort of system of morals and virtues that tell them when to stop. Villians, on the other hand, will continue to whatever end to obtain a result.
Darth Vader wanted peace too. So, he killed all the enemies of the empire. Once he decided to do anything necessary to ensure peace, he became ruthless, not knowing that he wasn't freeing anyone, he was simply oppressing them.
Other than this one subtle difference, evil characters are just the same as any other type of character.
As a writer, you need to explain your evil character in some detail. It is just as important that your hero understands the motivations of the villian as the reader.
Most writers think that once the main characters are defined, the rest of the characters can be stock characters, including the villian.
DON'T BE ONE OF THEM!
Cliches will kill your story faster than any over-powered weapon. Simple rule of thumb: if it is from a movie that is less than a decade old, don't do it. If it is still evil after a decade, then use it. Otherwise, don't waste your time.
Some people like using psychopath characters. Unfortunately, some people think that they can get away with not having a character simply because there character is insane. Even psychopaths have reasons, these reasons are of a more confounding nature than normal evil characters.
Good evil characters are not accessorized, they have character. They do wrong things for the right reasons. My favorite evil overlords are great not because they have power, but they have some character to back it up.
So, in summary:
1. Evil characters, like any characters, must have character. If all that makes them evil is clothing, weapons, or fortresses, then you need to go back to the drawing board.
2. Evil characters, like the hero, have motivations also. They just are willing to go to extremes to accomplish them.
3. It is super important that the reader knows the motivations of the character, otherwise they will not connect with the evilness of the character.
4. Cliches are prohibited. If you are trying to use a plot device that you saw in a movie that was made in the last ten years, then don't use it. If it is still evil after a decade, then use it (more so if it has passed the test of several decades of violence.)
5. Psychopaths have character too. It is harder though.
6. The best evil overlords have character. CHARACTER!
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