Showing posts with label kickstarter. Show all posts
Showing posts with label kickstarter. Show all posts

Wednesday, 9 June 2021

Crowdfunding - Why do it?

 Further my previous introductory post on Kickstarter, I thought it was worth setting out why you might consider crowdfunding a project given the financial risk and potential disappointment you could be exposed to.

(1) Without you it might not ever happen - although this is an ever reducing proportion of the projects being launched in the gaming space, there are still some less mainstream topics which would probably not be produced without both the finance and the secured level of interest crowdfunding provides.  Traditional wargame figure manufacture and boardgame production is an expensive exercise to commission and often involves minimum runs in order to cover its production costs.  

(2) It may never come to retail - some projects simply don't make commercial sense and so funding a production run via crowdfunding may be the only way to make it happen.  Some other projects are simply so expensive to produce that with retail markups (especially for boardgames) would simply result in a retail price that was eye watering and unlikely to sell.  But beware of FOMO (the fear of missing out) - just because something isn't going to come to retail doesn't mean it will be a great product indeed it might indicate the opposite. You need to take a cold hard look and make sure it's worth the money and you are not just backing because you might miss out!

(3) You might save some money - crowdfunding projects often offer products at a lower price that you may pay eventually at retail; however, you do need to factor in shipping costs (which are usually only estimated initially) and any VAT or customs duties you may be hit with later.  These days with the increasing costs of shipping and changes in VAT requirements etc. this has become an ever decreasing reason for backing.

(4) You might get it earlier - backers can receive their products before they reach retail but this is not always the case.  Check what commitments, if any, the project is making before relying on this to be the case.

(5) Exclusive extras - crowdfunded projects often include stretch goals should the funding levels reach particular milestones, they also may include "early bird" offers to help boost initial pledges.  Whilst both of these may help add value in the case of (3) above they are not necessarily "exclusive" to backers (ie you may be able to buy them later in retail for an additional cost).  Where items are stated to be "exclusive" it is usually necessary to read the wording very carefully to see whether it provides more flexibility for resale later than first appears.  In any event, the key question is what do these exclusive items add to the product - in particular with boardgames - are they worth it (ie if they were necessary why aren't they in the core offering - why make them "exclusive").

(6) Being part of a community - with some crowdfunding campaigns a community builds up of the backers (with some platforms restricting comments etc to backers only) and this can be fun but your mileage may vary (and like any community on the internet things are not always ideal with people's behaviours.  You may also get the chance to influence some aspect of the product (although the more you can influence the less mature it is likely to be and thus more risky!)

Have I missed any?

In any case, it should be apparent now that few of these are entirely compelling reasons and you need balance these with the risks (ie that you end up getting nothing!).

Friday, 16 April 2021

Kickstarter

Back in 2018 a friend of mine introduced me to Kickstarter.  To be honest I wasn't really sure it was something I was going to be interested in but fast forward to today and I have been involved in crowdfunding over 100 projects and so I thought I would share my experience and what I have learned.

So firstly, what is Kickstarter and why should you care?  Kickstarter is a crowd funding platform - what's that I hear you ask!  Crowd funding is where a project is funded by members of the public rather than by the more traditional funding routes.  Something that is really made practical by the internet.  This usually takes the form of someone outlining a product they would like to produce, seeking a total sum to make it happen and asking people to contribute money in the expectation that they will receive the product.  Kickstarter is a platform for crowd funding (other crowd funding platforms are available!).  The projects seeking crowd funding are many and varied; and the people launching these project range from individuals with new inventions to companies trying to assess customer interest before manufacturing.  My particular interest has been in the area of wargames figures and board games.  Making miniatures and board games is expensive and traditionally the upfront costs and uncertainty of demand has constrained the production of new and less mainstream products.

My first Kickstarter which funded at the end of 2018 was UBOOT: The Board Game a co-operative four player simulation of a U-boat which combined a board, a 3D cardboard submarine and an app.


I have always had an interest in submarine warfare and so this grabbed my attention straight away but I vacillated a lot before risking backing it.  Which leads me onto a key thing about crowd funding.

Whilst Kickstarter and the other crowd funding platforms may look like a shop front and a way of pre-ordering products - they aren't.  Your pledge (the money you contribute to back the project) is wholly at risk - you may not receive anything and you will have little recourse, if any.  But if you are prepared to accept that risk and do a little due diligence there are some really interesting opportunities to help bring new projects into being.

The other key thing, along with an appetite for risk, that you will need is patience.  Many projects are delayed in the process and you may have to wait a lot longer than the estimated delivery date before you see whatever it is you backed.

As to due diligence, I would always suggest checking a creator's track record - have they delivered previous projects successfully and what was the feedback from previous backers.  Will the product be coming to retail and once you factor in VAT, shipping etc. will it be available cheaper.  Are the kickstarter exclusive elements or general bling worth it?  There's no one right answer and crowd funding is certainly not for everyone but I have added several figures and board games to my collections that wouldn't have existed without it.

I plan to share some of my specific projects in separate blog posts assuming anyone is interested!