I’m gonna say it: I hate Kickstarter. I hate the fact that they make it easy for anyone to ask you for money. That’s not to say I’m a total Scrooge, but I keep getting hit up to back people’s projects. Somehow, it seems fundamentally wrong for me to “invest” in your project without getting a return of some kind. And yeah, I know you get a copy of the CD, a digital download of the album, and maybe a limited edition something-or-other, but is that really worth $50 to me? And does sponsorship entitle me to any creative control over the final product?
When my company sponsors an event, there’s an opportunity built in for us to recoup the money we invested. When an investor drops a bucket of cash in a company, they usually get some stock options in return. Musicians using Kickstarter just want me to give them money to go make an album. Why not give me a percentage of future sales? How ’bout allowing me into the creative process. If I’m paying for it, I want to like it!
A couple months ago I got asked to back a movie. I knew the people behind and in front of the camera, so sure … I’ll sponsor. A couple weeks ago, I got another email request: We need more money! Please sponsor us — again! What happened before? Where’d all that money go? Not clear on how to budget? Blow it all on … blow? I’m not interested in tossing more cash into a bottomless chasm.
At the same time, I see companies in the music space running campaigns to upgrade their own platform/product offering. If the best you can do is essentially beg for cash, why should I place much faith in the future of your company? Apple started in a garage, D.I.-Why started in a basement, and musicians slog it out in clubs for years.
Without going all Andy Rooney (RIP…), sometimes you just need to work hard and tighten your belt . Don’t blame a lack of funding response from others for your failures and inadequacies. The economy sucks for everyone that doesn’t refine oil or run hedge funds; do you think this is the time to ask people for money?
There’s one more fun fact to consider: Kickstarter only “pays out” from your sponsors if you meet or exceed your goal. Need $5k to release your Captain and Teneille tribute album, but only raise $4k? Oops, sorry — no money for you! But if you meet your goals, and get to record that ska version of Muskrat Love, then Kickstarter’s takes 5% of the funds you raise. So for $5k, that’s a $250 commission. Add to that Amazon’s credit card processing fees — another 3-5% ($150-$250 on $5k). Could be pretty lucrative — for Kickstarter.
The point? Work smart … within appropriate limits … and realize that money alone isn’t enough for a quality product or company. If you’re constantly relying on others for support, what does that say about your own ideas and endeavors?
