Crowdfunding a Three-Ring Circus?

[Goblinoid Games]

I think it's pretty clear now that crowdfunding through places like Kickstarter and IndieGoGo has totally changed the dynamic of small press publishing (and even the larger presses). Ever since traditional distributors changed the way they buy games, a publisher had to provide all the capital for a project upfront. This meant publishers had to bear the financial risk, but also had to carry the debt of the project until sales made it up. For some projects, this could take a while.

Crowdfunding is a great thing. I have a couple projects coming up and plan to give it a go again. The Labyrinth Lord Referee Screen was successfully funded through Kickstarter a few months back, which was great because that type of product is hit or miss. Some people love screens, some don't. Kickstarter let me raise the funds to cover the initial cost of printing. But I had a conversation lately with someone in which he said that he thought Kickstarter is kind of becoming a circus. I had some similar thoughts about some of the recent Kickstarters I've seen, but this statement got me thinking and I thought I'd see what opinions people have.

The circus issue is particularly in reference to stretch goals and the idea that "bigger is always better" when it comes to topping out as high as possible when the time limit is up. I think everyone would agree that stretch goals are a neat idea, and there is little doubt that they seem to "work" in terms of convincing people who may be on the fence to become a backer. But one real concern from a financial point of view is whether some backer rewards are "smart."

By smart, I just mean that the effort and monetary investment on the publisher side is worth the extra pledges. For example, if you have a $2,000 stretch goal that will cost you $1,900 to implement in shipping costs, production costs, and development costs (paying artists and writers), then in the end if you are a publisher what have you really gained from that stretch goal? I've spoken with more than one publisher who is concerned that the "stretch goal circus" may be setting unrealistic and possibly unsustainable expectations.

Which gets down to the heart of the issue. If you are a person who is planning to support a Kickstarter, what are your expectations? Are detailed backer levels enough, or at this point do you "expect" stretch goals? What sorts of stretch goals do you expect?

[Mark]

I have been having similar thoughts in regards to crowd funding. Many are successful but I see a continued trend of companies continually going back to the well to fund all projects. More frequently I now question if I want to fund those developments because having to rely on crowd funding makes me question the underlying business. What happened to the proceeds from subsequent sales of the prior product? Were there subsequent sales? Why wasn't a portion of that money used to fund additional products? I realize there are a large number of factors which can effect small publishers so crowd funding may be the only option.

The constantly increasing scale of successful projects bothers me. Personally, I am not that interested in additional perks but it is the normal model now. I'd rather see an improved baseline product rather than a bunch of token junk when projects exceed funding goals. I must be one of the few because the clamor for add-ons is substantial. I have no expectations beyond my original investment. I just want a quality product delivered in a timely manner.

Over the last few months, my backing of projects has dropped significantly. Why back a project when I can just buy the end product for a lesser price in a few months?

[knightvision]

I have to agree with Mark as well. I've enjoyed backing various Kickstarter projects, including the LL screen. But the trend of stretch...stretch....stretch goals is getting out of hand. I would say offer the product with the various levels and that's that. Make another project for the stretch goals. Just my 2 coppers worth.

[Eldrad]

It does seem that crowdfunding is everywhere. People will get tired of it except for the very best of the best or the favorite of the favorites. I think it still shall go on for awhile.

[austrodavicus]

Of the several projects I've backed I don't believe I've once upped my pledge because of a stretch goal. As it is a couple of times I've found myself pledging more for an item than I would've normally paid, but I've done so willingly because I want to support the publisher.

[Ironbeaver]

What are the legal ramifications of using this method? The cynic in me says it's only a matter of time until someone raises a buttload of money, then delivers a thoroughly sub par product, keeping the "difference" by cheaping out on production value. One bad fail will jinx the whole thing.

[Goblinoid Games]

Legally I suppose it depends on the specifics of the situation. I do know that some people with no track record or a so-so track record start Kickstarters for projects that are not actually already written. That's great of you can actually follow through--but it is risky.

[barrataria]

What are the legal ramifications of using this method? The cynic in me says it's only a matter of time until someone raises a buttload of money, then delivers a thoroughly sub par product, keeping the "difference" by cheaping out on production value. One bad fail will jinx the whole thing.

I'm not sure that I see that risk as much different, if any, from the many many instances of preorders that are never fulfilled or linger for years as projects stay "in development".

I understand why it's attractive to publishers... having paid for artwork upfront and waiting many years to recoup the expenditure, I am a bit envious of the certainty this new financing form allows. But if I ever get to publish again I'll still pay for art up front. I'd feel really guilty every time a deadline slipped.

[knightvision]

There is a great discussion thread over on ENWorld on this subject

[Koren n'Rhys]

The only project I've pledged to, and successfully (YAY!) was Starships & Spacemen. To be honest, most of these projects just seem overpriced to me. I'd never pay $100 or whatever for ANY gaming product, so the Rappan Atthuk, Tome of Monsters and all those... Meh. Most of the stretch goals seem gimmicky and things I have no desire for.

I DO appreciate detailed pledge levels and USEFUL add-ons. PDF vs Print Copy choices, GM screens, bonus intro modules for a new ruleset (hint-hint).

It has been interesting to watch the Kickstarter phenomenon and see what people take interest in. I'll grant that it's a great way to get a new product into hardcopy production that otherwise might have been PDF only if someone had to bankroll a print run themselves.