Thursday with Amanda: 5 Pitfalls of Using Kickstarter…and How to Avoid Them
Amanda Luedeke is a literary agent with MacGregor Literary. Every Thursday, she posts about growing your author platform. You can follow her on Twitter @amandaluedeke or join her Facebook group to stay current with her wheelings and dealings as an agent. Her author marketing book, The Extroverted Writer, is available from Amazon and Barnes & Noble.
Kickstarter is a popular way for artists and entrepreneurs to get the funding they need to bring a project or idea to fruition. It’s been used by everyone from Reading Rainbow to TLC to Zach Braff. So clearly, some big names (along with plenty of little guys) have adopted the unique platform.
For awhile board games and the like dominated the Kickstarter platform, but more and more I’m seeing authors and even publishers launch their book projects through the site. It’s definitely a tempting idea. The thought of having $5,000 or $10,000 as opposed to the few hundred I used to put together my own indie book The Extroverted Writer, is…mind-blowing. Oh, what I could have done with that kind of money!! My book could have been edited by Stephen King and had a large print edition and a Spanish language edition and a braille edition and an ad in Times Square to boot.
Okay, maybe not, but this is the lure of Kickstarter. It creates this “the sky is the limit” mentality. And it works.
So what are the pitfalls? Oh, there are plenty. Kickstarter is an everyman’s version of Shark Tank, except the people with the ideas tend to be artists and creatives as opposed to MBA grads and business owners, while the backers (or partners) are regular consumers, looking to get in on a new product that fits their needs.
Clearly this is a setup that could have disastrous results. And sometimes it does. But it doesn’t have to! Being aware of the pitfalls is what will help you not only be able to determine whether Kickstarter is right for you, but have a successful Kickstarter campaign.
1. Pitfall #1: Idealism. Sure, it’s nice to think that your great, bulletproof idea will rake in the support and have people buzzing across the Internet. But this can be the greatest pitfall of Kickstarter.
Assuming that your idea has a large audience, waiting to throw money at it can be a huge gamble if you don’t already have existing support. Here’s an example: Kevin sings for his church. He’s been told he should audition for American Idol or that he should cut a record. Feeling as though he has his entire church behind him, he launches a Kickstarter campaign and throws money into having a pitch video made and in getting quotes on the various costs of his project…which isn’t going to be a praise and worship album, but rather a folk album. He uploads his project…and only gets a few supporters. What Kevin failed to realize is that while he definitely has some fans, he doesn’t have as many fans as he thought he did. Sure, the congregation like hearing him play on Sunday. But they don’t like him enough to support him financially…especially when the product he’s wanting to create isn’t what they’re used to. So, his campaign fails.
To avoid this pitfall, ask around and gauge interest in your idea. Talk to people who will give it to you straight (aka. not your mom). This will save you time and money and a lot of headaches (and maybe heartbreaks) down the road.
2. Pitfall #2: Money. It’s easy to think of yourself as this super frugal person who has a bunch of help lined up that won’t cost much and so therefore you can get away with doing your project at a fraction of the cost…but then you find yourself blowing through your Kickstarter funding with no end in sight. Why? Big projects always cost more than you anticipate. For example, Jane is Kickstarting her picture book. But at the last minute, the person she had lined up to do the illustrations backs out. She scrambles to find someone who can do the illustrations in the time she has left. But the rush job costs three times as much. Suddenly she’s out of money and she hasn’t even gone to print.
To avoid this pitfall, add plenty of cushion to your financial goal. This can be labeled as an “emergency” fund or something of the sort.
3. Pitfall #3: Time. I can’t tell you how many Kickstarters promise one delivery deadline only to push it off by one, two, three…even six months. Why does this happen? Can’t people just get their act together? Much like the money issue, it’s easy to think of your project as easier than it really is. It’s easy to assume the people you have helping you will do so in a timely manner. And it’s easy to think you won’t run into roadblocks. But again, these things always take longer than planned. And there’s nothing worse than having hundreds of investors frustrated by how long it’s taking you to get your project out the door (where’s the incentive for them to invest again?!).
To avoid this pitfall, add three months to your estimated delivery date. This will give you a much more realistic timeframe…and if you get done early, you’ll have very happy investors.
4. Pitfall #4: Changes in the plan. With many creative projects, I’ve seen it happen where you thought you were going to deliver one thing…but you ended up putting together a slightly different thing. Or, you promised one thing only to switch gears a bit and altogether cancel part of your original promise. For example, Bill has a cool idea for a new fishing lure. He has numerous styles from which his investors can choose. But when it’s time to produce the lures, he realizes he can’t offer two of the ten styles due to production and material issues. Now he has the fun job of letting his investors down and trying to convince them to be just as happy with a slightly different product.
To avoid this pitfall, do your research…extensively. You want to know every aspect of your project from design to materials to production to delivery…and you’ll even want some backups lined up. This way, you won’t offer anything that you can’t fulfill.
5. Pitfall #5: No marketing strategy. Kickstarter features thousands of fundable projects at any given time…and it isn’t the only funding site! There’s lots of competition, so the last thing you want to do is create and upload your project only to sit back and wait for the funding to roll in. Because it won’t! You’ll need an aggressive marketing strategy to spread the word and communicate that your project is out there, needing support. The more money you need to raise, the more aggressive your campaign should be.
Avoid this pitfall by creating a marketing plan for your project. Aim to have as many people as possible lined up to Tweet, Facebook, and talk about it, and maintain your own marketing calendar to ensure you stay on course with talking about your project.
What do you think about Kickstarter? Have you used it before as either a project backer or creator?
Our small press, Castle Gate Press, is using Pubslush to introduce authors before publication. We ask the author’s friends and relatives for some extra support, helping the author begin earning royalties sooner by paying off the cost of the cover, layout, etc.
Pubslush is just for books. We found it works well for an author who has a large committed circle of support, people who were happy to pay more for a preview ebook copy, a signed copy, or even to get their names listed in the book in the acknowledgements.
From what little experience I have had with being on the donating side and the project side of a crowd sourcing vehicle like Kickstarter, I believe most people have to know a lot of people, with money to give, going into it. It is the rare project that will attract a high number of total strangers who will give significant amounts of money. It reminds me of Celebrity Apprentice. The contestants who know a lot of people with high net worth are able to raise the most money.
Another thing, with Kickstarter, it looks like a disadvantage because you don’t get any of the donated money if you aren’t fully funded by the deadline. If you go with Indiegogo, for example, you get to keep what you raise (minus fees). But if you raise too little money to go through with the project, you have a different problem. What will you do with the money?