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How I lost $40,000 on Kickstarter & How YOU can avoid it

Mark Anthony Le

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How? Very easily.

First things first, let me give you a backdrop on the story at the time of writing.

I created a product and stumbled onto Reddit. Reddit became a growing community around my product and demanded it on Kickstarter.

I contacted Kickstarter to confirm if it was legitimate and within rules for me to post my project, they confirmed no problem.

I put it on Kickstarter and within the first day already exceeded $10,000 in funding making my project 100% funded.

Over the course of 14-21 days, my project reached north of $40,000.

With the success, I tried my best to capture all of the information of the customers from Kickstarter, but unfortunately Kickstarter's backend only gave the names and nothing else on the backers.

A voice in the back of my head kept telling me to capture their emails on my website but another voice echoed, "ehh, who cares? Nothing's going to go wrong. You're fully funded, you're going to get your money and their information in the end"

Long story short, the success came with an influential hater in the market and he had gotten his followers all to reported the project repeatedly.

Kickstarter ultimately suspended the project overnight leaving me short, dry, and with no customer information. I contacted them numerous times to no avail including the original contact that confirmed I was within the terms. I live in Brooklyn NY so I could visit their offices anytime, but their policy prohibits them from disclosing why etc.

What's worse? They tie your hands and eliminate your ability to comment on the project.

This is what happens when you give up control, albeit I could've minimized the risk, it was my mistake and I've fully accepted it.

I've since gotten some of those sales back but I've definitely learned many lessons here. Very humbling to say the least.

All of my other business ventures have been beefed up in terms of what I've learned.

HOW YOU CAN AVOID THIS:

1Do not give up 100% control

If you must give up part of your control, ensure that you have a thorough backend system to capture their information.

I've since implemented email capturing systems that enable me to secure the new clients information when he pays via other platforms.

So say you're deciding to start a Kickstarter/Indiegogo/gofundme campaign- when a new backer backs your project, ensure that you send out a personalized message to each person a brief survey to fill out with their info so that they can receive their product timely (You can outsource this if you have the resources, otherwise do it manually)

You won't get 100% of them to fill it out but at the end of the day- 1 is greater than 0. You must remember that. When I got dumped by Kickstarter, I was left with 0.

When I started out that's all I did and it has helped me gain exponential exposure and set me apart from the rest of other project creators. Backers poured in with awesome love and support saying they've never received such timely and personalized message from the creator himself.


TLDR:

Read the post. It might save you $40,000.
 
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Last edited:

MJ DeMarco

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Rep++.

Can you give any insight to HOW an influential person can derail a project? Was it borderline unethical? Illegal?
 

Mark Anthony Le

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Why don't you roll out your own kickstarter clone:
http://www.selfstarter.us/

And direct everyone on reddit to that?

That's awesome! I might've gone with this if I knew earlier but alas I'm now receiving all orders via my own website where I ultimately have all of the control.

Rep++.

Can you give any insight to HOW an influential person can derail a project? Was it borderline unethical? Illegal?

I originally contacted the influential person (let's go with Brandon for ease sake) to send him my product free of charge and for him to test out.

He expressed deep disinterest in the product. So I thanked him for taking his time.

After my product launched on Kickstarter, he got jealous at the success and started to bad mouth my product. (It's important to note that he had started a Kickstarter project and it didn't raise much money)

At which point he started to broadcast his opinions to all his followers.

I messaged him to clear up his confusions and address his points. After several emails and many angry statements by him, it was clear I wasn't getting through to him.

He continued to contact his followers to repeatedly report my project and contacted other influencers in the market to do so as well.

It was borderline illegal and against Kickstarter's term of service to do that. But it's near impossible to point out who reported the project and how they all point back to Brandon.

It goes to show how much control you lose when you leave it to another platform to decide your revenue. With just a snap of a finger, the whole project was zapped.

At the end of the day, I still have many customers who believe in my product and what it stands for. I've had many of my customers complain to Kickstarter but it's like beating a dead horse.

I've since learned to work around this issue by responding comedically. Rather than viewing it as an issue, I have been keeping it very light hearted and witty.

It keeps my soul and mind at ease this way
 
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Solrac

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Wow, would never think of that happening. Thanks for the super valuable FYI.
 

H. Palmer

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2 questions.

What happened to the 40,000 ?

Why not walk into Kickstarter's offices? You have nothing to lose.

Gather all the evidence you have and get into contact with a rep on the phone to make an appointment. Your goal should be to get your campaign back more or less intact.

If they keep brushing you off, walk in unannounced with all your documents (after having made a copy of everything) and present everything to the receptionist, insisting that you want to speak with someone. Say nothing about officials brushing you off on the phone.

Say that you won't go away unless you speak to someone and if not, you will throw everything out into the open.

That's what I would do.

You have nothing to lose.
 

Mark Anthony Le

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2 questions.

What happened to the 40,000 ?

Why not walk into Kickstarter's offices? You have nothing to lose.

Gather all the evidence you have and get into contact with a rep on the phone to make an appointment. Your goal should be to get your campaign back more or less intact.

If they keep brushing you off, walk in unannounced with all your documents (after having made a copy of everything) and present everything to the receptionist, insisting that you want to speak with someone. Say nothing about officials brushing you off on the phone.

Say that you won't go away unless you speak to someone and if not, you will throw everything out into the open.

That's what I would do.

You have nothing to lose.

Kickstarter rules- the payments are released when the project reaches its end date.

Kickstarter has no official number for you to call.

Kickstarter terms and regulations forbids anyone in Kickstarter to discuss the reasons for pulling the plug on any campaign. No matter if you have paperwork or not.

Many people have tried to do what you're saying. 0 have succeed.

I'm sure legally with a lawyer I can figure something out but it's not worth my time and effort

I have better things to do than to fester in a cesspool of negativity with slim to 0 chances of me getting the money and campaign back.
 
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H. Palmer

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I think you are just afraid to stand up for yourself against an organization that bullies you. You shouldn't be.

In my opinion if you really want to be successful, you should disregard rules that are unfair to begin with.

I've looked at their Terms and Conditions, and in my opinion they are unfair and immoral.

I also ran into pictures of their executive team and they confirmed what I've long suspected about Kickstarter.
This is a company run by people that hardly have any real life experience.

This is the reason they don't disclose what percentage of projects succeed or fail.

"Succeed" means that the project owners deliver on their promises to their investors.
Not that the project gets funded. That is not succeeding. That is the spoiled brat wet behind the ear's idea of success.

About Kickstarter's terms, there hardly seems to be any thinking behind it, just some work by some overpaid lawyers brought in by their investors.

You can reach Kickstarter through various channels, including their support email address, Twitter, their attorney and about 12 different venture capital firms.

Just make up a reason. I'd give it a try.
 
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Mattie

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I would say it's probably that you gave him the product before hand. That needed to be avoided. If he had only seen the information on it, he wouldn't have the power and control to say anything about the product without it being in his hands in the first place.
 

ZF Lee

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Maybe we should go organic. Self-fund our ideas. It might take longer, but looking at the scene.....it's quite hazardous. Lots of haters. I think I should sell duct tape for the haters...I could make a Fastlane out of it.
 

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