Given Alpha Colony previously raised more than $100,000, Williamson told me he assumed it would be easy to hit that a second time around, and had scaled and budgeted his game within that range. If Alpha Colony had managed to raise $50,000, it would have just barely done so, and that came with big consequences.
I've backed more than 400 crowd-funded projects and the one hard and simple rule of managing a fundraising project is ASK FOR THE MONEY YOU NEED. Don't ask for more; don't ask for less. That they asked for $50k, when they're both expected and needed $100k is fucking awful. Frankly, it's downright dishonest. If they had succeeded, they would have been forced to put forth a likely shoddy project, at best. And they clearly know that.
YOU ASK FOR THE FUNDS YOU NEED TO COMPLETE YOUR PROJECT. If you need $50k, don't ask for $100k. You may lose your entire project, because you're reaching for the stars. Likewise, don't ask for $50k if you require $100k.
When someone is backing your crowd-funded project, they are forced to make the assumption that you've done the math and know how much you realistically need for your project. Period. This is not a place to play e-Bay auction games of "well, if I start the bid low, it'll entice people to come and bid it up higher". Projects are being funded that range from $500 up to millions, A $100k goal is not absurd, so setting it too low for your needs accomplishes absolutely nothing.
Patrick and the guy managing the project are incorrect in suggesting that "backing a winner" really means much of anything. Setting it at a lower price than necessary in some absurd idea that it'll fuel a sky-bound trajectory is not backed by the actual experiences of crowd-funding. As I mentioned, I have backed hundreds of projects and how great or small the goal and how near to being funded it is has very little significant impact. Quite simply, people back stuff they're interested in. The spike at the end has nothing to do with "Oh, I want to be involved with a winner!" and more to do with "Okay, I don't have much time left to make up my mind and I guess I'm going to pull the trigger on backing this project".
Playing silly games like the above is all sorts of wrong (and unnecessary).
Now, on to a more technical point with regard to Kickstarter:
In a discussion with them in the past, I'd made a suggestion that some sort of algorithm that kicks in near the end of a project could be interesting. I don't know if it is necessary since projects usually don't come so close and fail (Fargoal came close, but succeeded by a few dollars in literally the last few seconds) -- but it'd still be interesting to consider an algorithm that takes into account the percentage left for the project to be funded and the recent velocity of that funding to extend the fundraising time in small increments.
This wouldn't be just to see a project so near the goal get pushed over, but to allow some extra time for projects that have already met their goal but are seeing a flood of excited backers in the last few minutes. There's no harm in allowing a very successful project to keep going until the wave subsides.
Log in to comment