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Yet another reason why a Kickstarter project may fail

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40hz:
What is responsible for triggering the biggest Kickstarter project refund ($139,170) in history?

Hint #1 : arbitrary and ridiculous licensing - including licensing terms that haven't been announced yet.

Hint #2 : licensing rules that were changed after the fact

Hint #3 : Apple (Is anybody surprised?)

Interesting article over at Wired about how Apple killed a kickstarter project by once again changing its rules in midstream. Read all about it here and here.

Noteworthy item - the project is refunding 100% of the contributed amount back to the investors - and absorbing the 3% credit card fees plus Kickstarter's 5% cut on all contributions for a total out-of-pocket hit of $11,000.

Three things to take away from the above:


* There's  still some sense of honor left in the world of business startups.
* It pays (literally) to understand Kickstarter does not do what it does for free.
* Any third party who is thinking of doing anything which involves an Apple product seriously needs to have his/her head examined.
And maybe it's just me, but for what little Kickstarter does, 5% seems like a lot to charge for merely providing web exposure.

wraith808:
And maybe it's just me, but for what little Kickstarter does, 5% seems like a lot to charge for merely providing web exposure.
-40hz (December 21, 2012, 08:30 AM)
--- End quote ---

I totally agree on that... and good on them for absorbing it.  I've had other projects that I've funded have to absorb fees from various things from Apple douchebaggery to vendor/supplier douchebaggery.  As of yet, I've not been burned.  But even though I've backed a totally silly number of projects, I've not been burned yet.

40hz:
^Been there too - although my track record for emerging unscathed isn't anywhere near as good as yours. ;D

Still, if nothing else, losing some investment money teaches valuable lessons in the exercise of due diligence and prudence.

But that's a risk you have to be prepared to accept (and be able to afford) if you're investing in anything. A startup is not a game for kids - be they entrepreneurs or investors. Like the old venture capital maxim says:

     "To avoid injury - never play hardball with amateurs."

Fortunately for its investors, this project's management was professional all the way.

Onward! :Thmbsup:

wraith808:
Well, looking at the comments, even with a full refund, a lot of them aren't happy.  :-\

Carol Haynes:
And maybe it's just me, but for what little Kickstarter does, 5% seems like a lot to charge for merely providing web exposure.
-40hz (December 21, 2012, 08:30 AM)
--- End quote ---

And yet Apple collect 30% for the same thing!

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