KickstarterForum.org

Hello, I am a creator, not a promoter. I have launched two kickstarter projects (Here is my profile: https://www.kickstarter.com/profile/thinkcrap), and am on the cusp of launching another. However i must admit that the whole self promotion and getting word out thing is a little lacking for myself. My first kickstarter (with no promotion) flopped even though I believe it was a stronger project the my second, and yet my second was funded successfully with my pitiful attempt at promoting. I am in the works of creating my third, and must admit I would love for someone who is more on the end of promoting to jump on board and take over that aspect. I would like to run my next campaign for a minimum $2500 with 20% going to the promoter (all payouts will be based on the percentage based off of the remaining amount after kickstarter takes their cut). And it will not be an all or nothing thing; when half the goal is met the promoter will be paid 5% immediately, regardless of wether the project makes it to it's goal or not. Also, if the goal is surpassed the promoter will receive 30% if the goal is doubled, and an additional %5 for every doubling beyond that to a maximiam of %50 of final amount (after kickstarter takes their kick.) So if anyone feels like they are in the know of promoting a project and getting it out to what every will bring the people in please get back to me. I would be happy to further talk percentage take, and show you the project and whatever else you would need to know. I'm hoping that with my ideas and someones promoting skills we can make my next project blow up.

I see this kind of offer a lot. I would just like to provide some thoughts:

Let's say the promoter puts in 20 hours a week promoting your campaign (like a part-time job).

20 hours per week * 4 weeks = 80 hours.
Let say they aim to make $25 per hour or about $18 per hour after taxes if they are independent contractor, not counting fees.

If you end up raising twice your goal overall = $1,350 payout for the promoter.
If you end up raising your goal = $450 payout to the promoter.

$1,350/80 hours = $16.875 hourly wage if they raise twice your goal. After taxes = $13/hour
$450/80 hours = $5.625 hourly wage if they raise your goal. Below minimum wage everywhere.

They meet half your goal = $112.5 payout assuming $2,500 raised (after let's say 10% fee of Kickstarter and payment processing).

$112.5/80 hours = about $1.4 hourly wage if they meet half your goal but the campaign fails.

If the campaign fails regardless, they would receive no income.

Keep in mind that if you are successful, this will be a big cost for you (the promoter percentage) and you still need to fulfill rewards.

Obviously, whether or not someone would take this opportunity depends on the campaign and the creator. I might take this opportunity if it meant I could work with someone I admired.

From a business standpoint, if a good marketer valued their skills, they would not take this risk when they could get paid a steady hourly wage at another gig. If your payment structure compensated for the risk taken, then it may be more worthwhile.

I would aim to get paid at least 2x what I could make as an hourly wage in the marketplace to compensate for the risk taken.

If I was a bad marketer and dishonest and I wanted to make money, this is what I would do:

- Make this same agreement with like 500 campaign creators to diversify the risk on my part.

- Not be incentivized to do very much for each one or give them the personal attention they deserve because it's easy to assume that 10% of them will be successful, which will net me income.

- Claim that I am responsible for the successes and that I am not responsible for the failures and put the successful campaigns on my website as testimonials (yes - there are people in the industry that do this).

- Repeat the process

You might get lucky, but in my opinion, this kind of opportunity will attract the type of promoter you wouldn't want.

HOWEVER, there are legitimate people in the community that will work on a percentage basis if there is an upfront fee or they will agree to come in once you have raised 50% of your goal.

Would like to add: I am not discouraging you from seeking out help or assistance with your campaign. I'm just trying to shed some light on how a promoter who looks at your percentage idea might view your offer .

Sal~Good stuff.... it surely makes sense and I really appreciate Crowdcrux and all the information and knowledge you bring to light in all areas of crowdfunding and the obvious progression of the industry. As I embark on campaigns the article you wrote on the 3 ways crowdfunding consultants charge was a big help when looking into consultants http://www.crowdcrux.com/types-of-crowd ... -campaign/
However my question (rather segmented) is: What have you seen as a 1. "fair" flat fee, 2.% based only and 3.hybrid fee + % that they (or companies) are charging for the 3 pricing models that you outlined (& I just mentioned) with the target being most specifically in the non profit / rewards model). Are there any real or "true" industry standards out there established as of yet?

The short answer is, there are no established industry standards yet.

1. It depends on what the service provider will be doing. If they are going to put in 20 hours per week marketing your project or doing x, y, and z, I would multiply my hourly rate by estimated hours and charge 1/2 of that as a flat fee to start the project. This rate would not include expenses like paying for ads or a press release. I would bill the creator separately for that.

This is the best model for the consultant/service provider because it guarantees payment.

2. I don't think any service provider would quote a standard percentage basis, because the fee would vary based on the perceived riskiness of the project and the individual's overall campaign goal. Like I mentioned in the forum post here, if I were to seek a fee, I would seek to be compensated hourly at minimum 2x what I could get in the private marketplace.

Ex. If I could be paid $50/hr, I would seek $100/hr to compensate for the risk that the project may not fund and I have bills to pay. This assumes I am dedicating all my time to your project, and not diversifying the risk with lots of projects on a fee basis.

This is the best model for the creator because it emphasizes performance. It's the worst for the service provider because it doesn't guarantee payment.

3. I think this is the best model for the creator and for the service provider. Ideally, there would be some kind of flat rate payment to start (maybe half as in part one), but the service provider would only receive the second half upon meeting agreed milestones.

Example:
- Service provider will put in 20 hours per week
- Service provider will be paid 50% for work upon start of project.
- When project hits 60% funded, service provider will get next 25% of payment.
- When project hits 100% funded, service provider will get next 25% payment.
- Upon hitting project goal, service provider will be paid x% of funds over project goal if they choose to continue to work x number of hours per week, but will receive no hourly rate payment.

Thank you for your input Sal, shall we say you are helping to set an industry standard with these posts! great example and makes good biz sense. & as much as we'd all like to believe there's not a ton of work that goes into a successful campaign... there is no doubt tht there absolutely is. Definition of success = work. Thnks again

You're welcome . Be sure to kick it forward by sharing any insights you have as you go through your campaign and any reviews you have of service providers.

Absolutely! Thanks again

Whose the best company to look for kickstarter promotions? Curious to see what the best place might be to see if I can get some more traction for my project. Any suggestions>?

Exactly my thoughts, on spot in depth analysis, Sal. Working with a promoter is not as black and white as many would think.