Lecture Notes: Kickstarter's New Pledge Overtime Product

Introduction

• Host: Dana Claire
• Presenter: Brian McMurray, Director of Product and Engineering at Kickstarter
• Topic: New Pledge Overtime product in beta, aiming for general availability in spring.

Pledge Overtime (PLOT)

• What is it?
  • Allows backers to break pledges into four equal payments, two weeks apart.
  • Not a lending product like Klarna or Affirm.
  • No credit checks or late fees.
  • Functions more like a layaway plan.

Key Features

• Payment Schedule: Fixed - four equal payments.
• Creators' Payment: Paid as backers pay, not upfront.
• Fees: No extra fees, same Kickstarter platform and processing fees.
  • Each payment incurs standard fees (5% platform fee, 3% + $0.30 processing fee).

For Creators

• Payout Timeline:
  • First 25% after campaign completion.
  • Subsequent payments as backers pay their increments.
  • Final payout after last increment collected.
• Risk: Shared risk with Kickstarter if a payment fails.
• Refund Policy: Creators decide on refunds for already collected payments.

For Backers

• Payment Structure: Four equal payments.
• Failed Payments: Two weeks to fix; if unresolved, pledge is dropped.
• No Automatic Refund: Previously paid increments are not automatically refunded.

Beta Details

• Enrollment: Rolling basis, criteria for projects with pledges $125 or above.
• Location: Available in US, Europe, UK, Australia, and potentially others.
• Goal: Projects aiming to earn at least $10,000 (beta requirement).

Limitations for Beta

• Changes: Pledge needs to be canceled and re-pledged for edits.
• Late Pledges & Pledge Manager: Not supported during beta.
• Refund Tools: In development, contact Kickstarter for refunds.

Backers Experience

• Interface: Shows calculated payment dates and amounts.
• Selection: Choose between full pledge or Pledge Overtime.

Additional Information

• Stats from Beta: Significant increase in pledge amounts with PLOT.
• International Availability: Plans to expand, dependent on location.

Questions & Answers

• Fees: Each transaction incurs processing fees, about $0.90 extra total.
• Failed Payments Impact: Does not extend campaign completion; creator discretion.
• Backers' Pledge Change: Requires pledge cancellation during beta.
• Campaign Totals: Full pledge amount counts towards total goal.

Conclusion

• Contact Information: Reach out at [email protected]
• Apply for Beta: Start at kickstarter.com/plot-dbaa

Final Notes

• Beta participants will be updated on changes.
• Goal is to have a comprehensive system ready for general release.
• Encouraged to consider PLOT for higher funds and larger reach.