"Please Explain Kickstarters To Me!" Topic

I still feel like they are talking a foreign language or something. Please put it in terms simple enough for yours truly to understand.

Is it just to pledge funding or does it work as an online store as well? Does "unlocked" mean it's available already?

Example:

link

Thanks!

Dan

Kickstarter is a pretty free flow thing.

It works both to fund something, and as a "store" of sorts where you can purchase things already made.

Often you'll see companies want to fund a project, but also offer items they already sell at a discounted rate for those who "pledge" money to fund.

And yes, unlocked is generally used to describe an item that, at a certain funding level, is either a) available now for purchase and/or b) funded, available for purchase for a later date.

Each pledge level (dollar amount) comes with a "reward" that is the items you are pledging for, and often the higher amount of money you pledge, the more "free" items you get added on if total funding reaches a certain level.

And I agree, sometimes it can get very confusing with all the addons and pledge levels and such, especially for larger kickstarters.

"Unlocked" means the item(s) in question were a stretch goal that has been reached. They generally become available when they're produced, usually as part of one or more release waves of product from a successfully funded KS. They are not for sale immediately, and rarely even exist during the drive. Since stretch goals are always beyond the minimum funding, any unlocked stretch will eventually be released – assuming the whole project doesn't crap out after the drive ends, which has happened in a few cases.

KS pages are not online stores, although they often have a link to a manufacturer site with related stuff for sale. You'll often see "add on" items (usually as part of a stretch goal) with a separate price listed. These items are generally not part of any pledge level, but can be added by including extra money in your pledge – usually they send out some sort of e-form to fill out after the drive ends where you can tell them exactly how you want to spend you extra money beyond the pledge level you selected.

Note that many stretch goals include both "free" upgrades to certain pledge levels and "add on" extra items that need to be paid for separately by boosting your total pledge amount. The upgrade stuff frequently changes the "sweet spot" pledge level during a drive, so it's not uncommon to want to modify (generally increasing) your total pledge several times in a hot project that's pushing past many stretch goals.

I hope I can do the process justice:

Hi, I'm a person who wants to create a product.
My idea is to sell you a cubic foot of sand, in the shape of a cube.

Because you're a person who likes sand, I'd like to ask you to help me make this happen.
You can help me in a few ways.

You can promise to give me a dollar.
If you do, I will write your name in the sand before I box it up.

You can promise to give me five dollars.
If you do, I will buy a shovel and name it after you.

You can promise to give me 10 dollars.
If you do, I will send you a cube of sand (when I actually start selling my cubes of sand).

^That's how pledges work.

But here's the thing: If I only get 100 dollars, it's not feasable for me to start making sand cubes, so the total combined amount promised has to be 100 dollars or more.

In order to make sure I exceed that 100 dollar mark, I'll make "stretch goals".

100 bucks gets it off the ground, but if people promise me 200 in total, I'll throw a seashell into the cube at no extra charge to anyone who buys in at the $10 USD or more level.

If people promise me 500 dollars in total, I'll throw in a seashell AND a big pebble to everyone who buys in at the $10 USD or more level.

Then let's say I realize that I have a lot of people who are buying 10 cubes each, but I really want 10 people buying one cube each… Simple, I make a goal that says "If I get $10 USD or more from 100 people, I'll throw in an extra handfull of sand in each cube." This encourages more people to pledge instead of fewer people pledging more.

Then I realize that cubes are great, but to really appreciate a cube of sand, you need a sand cube pedestal.
I never set out to make pedestals, but since they're so handy, I can say "if you want this pedestal, I can sell you one for 5 bucks… but I don't want to throw it in for free. I will sell you this pedestal for 5 bucks on top of your pledge, so long as I have at least 500 bucks of pledges coming in guaranteed." This is an Unlock… where you offer to do something extra, for more pay, but only if the regular pledges reach a certain level.

And that's the simplest way I can describe it. It doesn't matter what you're selling, whether you have a warehouse full of it, or are just imagining how it'll go… the pledging goes the same way.

Pledge levels, more freebies at certain milestones of promised funding, the option to buy related things at certain other milestones.

I'm in at the $10 USD level for a cube of sand.

Usually you have varying pledge levels, which is what you are choosing to pay. You only pay if the funding goal is achieved. In order to tempt people to join, stretch goals are added. A stretch goal is something that becomes available, either for additional pledges or sometimes included for free for tose who have pledged a certain level, once the initial funding goal is met.

For instance, I start a kickstarter to produce a Grundulating Trunduliser in 28mm in New Metal-Free Cheese(TM). I set my funding goal at £1,000,000.00 GBP My pledge levels are:

£1.00 GBP – you get a thanks from me.
£10.00 GBP – you get a single 28mm Grundulating Trundulisetr
£100.00 GBP – you get a full Phalanx of Grundulating Trunduliser
£5,000.00 GBP – You get all of the above and I'll wash your car in a bikini (or something)

My stretch goals are:

£1,500,000.00 GBP – I'll make the Grundulating Trunduliser in 15mm as well and you can choose 1 28mm or 2 x 15mm versions.
£2,000,000.00 GBP – Everybody who pledged £100.00 GBP and above will get a free Cosmic Tranduceliser as for free
£2,500,000.00 GBP – I'll upgrade all the Grundulating Trundulisers to include swappable Main Gear Flange Sprockets to swap between Grundulating Trundaliser and Trundulating Grunduliser.

In addition, you can also pledge extra money if you want any of the stretch goals individually, once they are unlocked. So, for extra 15mm GrundTrunds, add £5.00 GBP each or for 28mm GrundTrund at £7.00 GBP each.

G.

I'm in for $11 USD of pledges. For $10 USD I want the cube of sand, and I'll also take the $1 USD name in the sand. I'm hoping we hit the $500 USD level quickly, because I can't get enough sand and big pebbles.

I think I'm now more confused.

But I could write a book on understanding kickstarters, if enough people were to show their interest…

PygmaelionAgain

I would also buy a cube of sand from you: you make it sound very attractive.

Seriously, though, that is one of the best explanations of the system I've ever read.

Kudos.

Sorry: "Cubos"*

John T

* If you use that name for your cubes of sand I wanna percentage!

I've have to admit I don't get involved in many because its beyond my understanding at times ;)

So how do other companies manage without kickstarters-all sounds like a big con to me, but I'm with streetline-confused as well.

I'm in for the whole beach!

Does that qualify me for the bikini babes stretch goal?

Wait… how do I get a shovel again?

Is that sand 'fine' or 'coarse'?
Will it work as basing on figs?

Actually, PygmaelionAgain, that was a really good example of how KS works.

Is your sand compatable with my vivarium sand?

Another point to Kickstarters – you need to find your niche in the market.

Cubes of sand – lots of interest. Grundulating Trunduliser – not so much.

G.

I wanted Sand…they sent me a Tar pit.

On the upside, I invited my Mother in Law over to take a walk in my new garden!

I'm about to launch a KS funding project for Trundulating Grunduliser's…it seems that, suddenly and for no real reason, there is a great need for these machines.

Goober: "£5,000.00 GBP – You get all of the above and I'll wash your car in a bikini (or something)"

LOL. Unless you look like JLo, I'll pass on your offer.

Dan :)

You can have a date with a beach babe in a bikini if you pledge myself 1 million dollars

disclaimer

It might be me

and a bucket of sand

I get the funding levels at the basic game/miniature/whatever cost plus a bit more for some nifty greeblies (I'm there for Ogre). Here's what I don't understand: things like $2,500 USD or $5,000 USD levels. Shouldn't that be an investor? Plus, if I've got that much cash, why don't I just take a long vacation and order the game when it comes out?

Is the bucket a free add on or do we have to pay?

FingerandToeGlenn:

Those "megapledges" that are pledge levels totalling a full 20% of the goal are the kind of thing that is bait for the big investor.

To give a sand related example:

pledge 100 dollars:
I will take you to the beach, hand you a shovel, and show you the whole cubemaking process from start to finish. I will make a video and put it on youtube, and will shout your name into every seashell we pack into the cube, and carry a picture of you in my wallet.

This is the kind of pledge that appeals to
1) Charities who want to get the word out(Looking at Penny Arcade here… if ever they wanted to write cartoons about hermit crabs)
2) Very interested individuals (Someone who was into cubist sandcastle architecture and really identifies with it. Particularly if this gets them every add on and upgrade in one fell swoop)
3) Businesses who want to get their name out there (In this case, maybe a sand sifter company or a waterfront preservation group)

Yes, they are funding the whole startup cost of your project or a large chunk of it, but they are also getting recognition and special treatment without getting handed a cut of the profits. Sometimes people will pay a lot of money just to get special treatment and be seen as part of something larger.

Its free

however sadly, I might be late…..

I'll just fondle my sand until you arrive, avec bikini!

I suspect it might be a lot cheaper to "rent" someone in a bikini, for a few hours, than to pay the extra 5,000 GBP to do so.

What is the estimated delivery date on those sand cubes? I know that many Kickstarters have a problem delivering by the estimated date. Many of them go far over. Have you given proper thought to the logistics involved in producing say 1,000 1 foot cubes of sand, especially once you start adding in those bonuses and add-ons? If you don't deliver on time you could started getting flamed so much in your comments sections all your sand cubes will turn to glass cubes.

£5,000.00 GBP GBP – You get all of the above and I'll wash your car in a bikini (or something)

Reminds me of this:

ack! okay I withdraw my pledge.

Is this a pledge or do you have pay up front when you sign up? If the funding level is not reached does the pledge just go away or are you out the money paid/pledged? In other words are you betting that the project will get funded?

You can promise to give me 10 dollars.
If you do, I will send you a cube of sand (when I actually start selling my cubes of sand).

This is the bit I don't get.

When do I have to pay, and when do you decide you've got enough and are actually going to make your sand cubes and send me one? what happens if you don't. do I still have to pay?

Usually the seller has 30 days to get their funding and they specify at what point the project will be funded – when sufficent pledges have been recieved to meet the funding goals. AT this point, no money has actually changed hands, it's just promises. If after 30 days they have reached their funding goal, everybody who pledged is billed. If they did not reach the funding goal nobody is billed. You shouldn't be charged anything until the funding date.

You aren't betting, because you don't put up the money until you know that there are (theoretically) sufficent people willing to pay to complete the project.

What you are doing is saying "Yeah, I'll buy your sand, if you can find enough other people interested in sand."

The project has a 'funding period' in which it has to meet the goal set by the creator (though I've seen that Indiegogo allows different models). If the funds raised do NOT meet the goal no money exchanges hands and everyone walks around. If the money raised DOES meet the goal the pledgers pay up and Kickstarter gives the money (minus the cut that KS takes, which is how the business operates) to the creator. This is the fun+scary bit, where the creator actually has to come through on the project and deliver it. This is where most people are reluctant, since if a creator bails out at this point you've already paid your money, and will have to resort to legal claims to get it back.* The lesson here is don't A) back more than you're willing to lose and/or B) back someone unless you are reasonably certain they will deliver.

-Will

* I'm still waiting for the 'Kickstarter to raise money to sue someone who bailed on their Kickstarter project'.

With Kickstarter, you pledge but the money is not taken from you until the project closing date – and it is only taken provided the project reaches its minimum funding goal.

If the project does not reach its goal, no money is taken.

This is different for Indiegogo. With Indiegogo money is taken at the time it is pledged, and the project creator can take the money even if the funding goal is not reached.

This makes Kickstarter much easier to manage, as pledges can be altered or withdrawn at any time until the closing date.

True, but you are betting on the people coming through, since even if fully funded, there are no provisions for ensuring you'll actually get the stuff being promoted.

It also appears there is little if any legal recourse, if they don't deliver on the project, for whatever reason.

I think of it as a combination of shopping, gambling, and the potential of a kind of ponzi scheme.

It's a risk, but the risk can be mitigated by only spending on projects that are -

1. Well funded – the further past the target figure the better
2. Have a clear 'mass' appeal
3. Are being proposed by names you recognise as having been involved with succsessful ventures in the past.

The 'All Quiet On The Martian Front' kickstarter ticks all these boxes for me, so I'm prepared to risk it.

It could be worst, after all said and done you could end up with your car washed by this guy

or even this guy

The horror! My eyes!

You think SBC in a mankini is bad, there was a pic running around the net last week of a guy in one that you could make two SBCs out of and still have change…

Back to the topic
Since I currently have a Kickstarter link let me tell you why I did it and what I hoped to gain from it.

I have written three books so far. I orginally had a publisher but they have closed their doors. I formed an LLC, but need to get some capital to produce my next couple of books. I wrote my goal to be able to finance the editing of the next book. My stretch goal is to do the same for a second new book. My third stretch goal is to get my bug miniatures back into production.

When I support a project I don't look for crowd appeal. I often fund projects that are like mine: A labor of love by a person or group very passionate about the subject that would otherwise be very difficult to get out the door. I look for things I care about to fund.

Terry

I should have stopped after PygmaelionAgain's post. Thanks

It's really much simpler…

You see something you like and agree to spend so much money to get it. Assuming many other people like the concept and pledge as well, the project gets funded and your credit card is charged the amount you pledged the day the KS closes.

Then you wait…

Then you fill out a "pledge manager" which is typically a complicated form to explain what you want.

Then you wait…

repeat above as necessary…

If you are lucky, something will arrive in your mailbox. If you are really lucky, you don't find yourself thinking – why did I want this over six months ago… (or more).

@craigH. Ha ha so true!