TiMe22 wrote:RavenX86 wrote:35% Sound ridiculous though ... you sure they ask that much ? I assumed would be scaled to your own profit margin .... like 35% of your own margin and taking into consideration paying the researchers designers and manufacturer that should be more funded today's share should be probably about 3-10% of the sales that come through their referral. In my own opinion .. if your profit margin is bigger than 25 on the actual product means you ain't giving much to the backers in the first place. Is my logic wrong?
Even worse: It's 35% of all sales from the moment they get involved + the USD5000 upfront. For FT it's a goldmine and without any risks...
I think your margin on a healthy Kickstarter project should be around 50-60%. Remember that it's not only the costs of your product that you need to recover, but also enough funds to actually continue your (new) business after your Kickstarter (and then I am not even taking your hours spent into account). In our case we have spent more money on the preparation of our product and the marketing of the Kickstarter than we actually have funded right now. But this is money well spent and we would not have our product ready for market without it. With the Kickstarter we want to create enough stock that we can use after the Kickstarter to become profitable. Economics are more than just producing something and making a small profit on it
Yeah sorry I already took this into manufacturer cost ... I know what you are talking about ... I consider that kickstarting should cover the first full batches of production not only the kickstarting one ... depends on your product ... some you just cant make profitable if you dont make at least 500 at once anyway ... 35% of all it's crazy stupid ... makes no sense ... I understand giving sales commission on tracked referrals but not on actual growth made organically by the campaign itself ...
