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Pay Back Support Funds as Reward?

Posted: Mon Mar 17, 2014 3:35 pm
by beau
I'm beau, new here and thinking about starting a project.
If your project is successful and turns into a profit-making business, can you pay back your supports as their reward?
My project is quite small, hopefully wouldn't require more than a couple of thousand dollars to launch, and if I ever make any money from it I'd like to pay back my supporters.
Is this permitted by Kickstarter? (I've done unsuccessful searches about this).
Thanks everybody, much looking forward to the Kickstarter possibilities for my project . . . I've been working on it for 20 years :D !!

Re: Pay Back Support Funds as Reward?

Posted: Mon Mar 17, 2014 8:49 pm
by bradAnderson
Greetings!!

Hey Beau, I'm unsure if there's an easy way to automate returning a portion of pledges back to backers. If you're US based it'd be through Amazon Payments instead of Kickstarter itself. I think the immediate best option would be to do a very thoroughly budget for how much you expect you'd need and then put a limit on your pledge rewards. Say you're looking for $1000 in funding... you could do a $10 dollar tier and limit it to 100 backers. Easier said than done though if you're looking to have many reward options, especially if the very in popularity. You could easily set yourself up for failure with that approach too. With over-funding would you be able to enhance your project? If someone's willing to support you, I'm sure they'd rather you invest all the funding you can to the overall quality of the project. Just my thoughts. =]

Thanks,
Brad!!

Re: Pay Back Support Funds as Reward?

Posted: Tue Mar 18, 2014 5:44 am
by sbriggman
If your project is successful and turns into a profit-making business, can you pay back your supports as their reward?
I'm pretty sure you can't offer this as a reward due to Kickstarter guidelines. See: "Creators cannot offer equity or financial incentives (ownership, share of profits, repayment/loans, cash-value equivalents, etc)." Source: https://www.kickstarter.com/help/guidelines

You could offer this kind of incentive on a p2p lending platform, on a roalty-based crowdfunding platform, or an equity crowdfunding platform.

Re: Pay Back Support Funds as Reward?

Posted: Tue Mar 18, 2014 4:18 pm
by beau
Many thanks, sbriggman, just what I needed to know, plus info on other platforms, I'll check them out.
~ beau johnson