This is a question as well as a discussion. I'd love to have feedback on this as I haven't used them myself but from what I have read this is a scenario on how I understand they operate cost wise and hence why all that glitters is not gold..So Funded Today is it worth it?
yes and NO..
Ok so I’m a kickstarter campaign. I have my product Acme A
Acme A sells for $20 plus $2 shipping there's only one reward level and this is it.
Acme A costs me $5 to make plus packaging and shipping costs me $2
So my target is $10,000 and I’m two weeks into my campaign and I’ve raised $7500..not bad..
Funded today are employed to help reach my target and they do really well I mean really well and raise $100,000
Wow I’m happy I am really made up and I can now turn Acme A into a business with lots of capital behind me…Well let’s just look a bit closer…
Kickstarter remove 10% of this total = $10,000
Funded Today take $3,500
plus I understand 35% of the total raised.
35% of 100,000 = $35,000
So how many Acme A products did I sell?
$100,000 /$ 20 = 5000 sales
of Acme A
So 5000 items at $5 each that’s a cost of $25000
5000 sales means I have $10,000
in shipping costs.
So lets just tot this all up..
$10,000 Kickstarter fees
+ $3,500 Funded today fee
+ $35,000 Funded today commission
+ $25,000 Production cost
+ $10,000 Shipping costsTotal $83,500 Sales less costs = $16,500
(100,000 - 83,500)
So out of the $100,000 I’m left with 16.5% and of that $16,500 I’d already raised half of it…
In addition to which I have 5000 products to move for the extra $9000 instead of moving 825 products it’s the equivalent of (825 *$20 = $16,500)…Now if my cost of Production were higher..
If my cost of production were 25% higher at $6.30 each Acme A product, then I would have just made the campaign total less all costs.. That would be a lot of work for nothing!
So when you see the headline figures it doesn’t always translate to the bottom line as increased value to you as a creator.
Am I right or wrong and what's your view, do you have actual experience of this company?
Sorry for the blonde moment with the incorrect name..