I just posted this on the other Kickstarter related story, so I figured I'd post it here, too:
Does anyone know the back story on why Kickstarter is so restrictive?
Kickstarter can't be used to raise money for causes, whether it’s the Red Cross or a scholarship, or for “fund my life” projects, like tuition or bills.
Indiegogo has no problem with it though.
Kickstarter also requires each project team to sign up for their own Amazon payments account. Why wouldn't Kickstarter just collect the money and then wire it / cut a check to the funding recipient?
Also, why does Indiegogo charge upfront while Kickstarter waits until the campaign is successful.
The whole crowdfunding space seems to operate pretty illogically. Are there legal complexities that aren't apparent to an outsider that force their hand?
Possibly the legalities are different when you're raising money for a cause, like a charity, or they're just concerned about 'fake' charities popping up?
> The whole crowdfunding space seems to operate pretty illogically.
It's logical to me. I won't be happy if I'm charged upfront, and the project is only half funded. There won't be any incentive to back a project early on, and there will be more unsuccessful projects.
It seems that Indiegogo now also has the "Kickstarter way" of backing as an option. And I'm seeing more and more projects use that.
> I won't be happy if I'm charged upfront, and the project is only half funded.
...so just set it up the same way as Amazon payments. Do an Auth on the card to check it's valid and active, then bill the card when the project is successful.
I guess from their perspective they want to build upon Amazon's payment infrastructure so they don't have to worry about payments and can grow other parts of their business. Which makes sense.
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[ 2.7 ms ] story [ 29.1 ms ] threadDoes anyone know the back story on why Kickstarter is so restrictive?
Kickstarter can't be used to raise money for causes, whether it’s the Red Cross or a scholarship, or for “fund my life” projects, like tuition or bills.
Indiegogo has no problem with it though.
Kickstarter also requires each project team to sign up for their own Amazon payments account. Why wouldn't Kickstarter just collect the money and then wire it / cut a check to the funding recipient?
Also, why does Indiegogo charge upfront while Kickstarter waits until the campaign is successful.
The whole crowdfunding space seems to operate pretty illogically. Are there legal complexities that aren't apparent to an outsider that force their hand?
It's logical to me. I won't be happy if I'm charged upfront, and the project is only half funded. There won't be any incentive to back a project early on, and there will be more unsuccessful projects.
It seems that Indiegogo now also has the "Kickstarter way" of backing as an option. And I'm seeing more and more projects use that.
...so just set it up the same way as Amazon payments. Do an Auth on the card to check it's valid and active, then bill the card when the project is successful.
I guess from their perspective they want to build upon Amazon's payment infrastructure so they don't have to worry about payments and can grow other parts of their business. Which makes sense.