$5,000 asking price on Kickstarter?

M

MaximusXXX

$5,000 asking price on IndieGoGo?

I know there's a crowdfunding thread but I haven't started working on the ad yet, although I have storyboards and script for it.


I'll be asking for $5,000.
I show the promo trailer we got done.
I breakdown what and how we're going to use the money if given.
I show clips of everyone working on the project supporting it.
I offer the following givebacks for donation amounts:

$50-BluRay, Signed Poster (by everyone) & T-Shirt (with the movie logo)
$100, the above and end credits as a "thanks to"
$500, EP plus 2% share for every $500 for possible net profit



Just wanted to get some thoughts on the blueprint without knowing what the film is about (I'll show clips on here later on).
 
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MaximusXXX said:
$500, EP plus 2% share for every $500 for possible net profit

Just wanted to get some thoughts on the blueprint
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You suuuuure you want opinion? ;)

The bit I quoted could be very problematic, unless you have very good legal advisor take care of the details. You can't just give out "shares" willy-nilly.
 
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If I remember correctly, Steve is correct. It's against kickstarter policy to give away shares in your project. You can only off reward type incentices, free DVD, signed poster, etc. I believe you can offer a producers credit, but not any monetary repayment.

http://www.kickstarter.com/help/faq/kickstarter basics?ref=nav


"Do backers get ownership or equity in the projects they fund?

No. Project creators keep 100% ownership of their work. Kickstarter cannot be used to offer financial returns or equity, or to solicit loans.

Some projects that are funded on Kickstarter may go on to make money, but backers are supporting projects to help them come to life, not financially profit."
 
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Zensteve said:
The bit I quoted could be very problematic, unless you have very good legal advisor take care of the details. You can't just give out "shares" willy-nilly.
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I do have friends in law who would help me iron out contracts.

I also forgot to mention that in the ad when I mention the EP I make it clear it's a limit of 20%, so if I got more than 10 $500 donations it would just reduce the portion for each donation out of the 20%.


And I am fully alright with giving 20% of profit to the $5,000 contributed to the film.

As far as likelihood of making money off the film? I'd give it 20% chance, I'm certainly going to try.
 
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Jeff Troiano said:
If I remember correctly, Steve is correct. It's against kickstarter policy to give away shares in your project. You can only off reward type incentices, free DVD, signed poster, etc. I believe you can offer a producers credit, but not any monetary repayment.
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AHHHHH.

Understood. This is news to me.


Alright then, $500 for an EP it is. I mention in the ad that their name will be seen at festivals and on the DVD.
 
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Also, I would consider some lower tier incentives. I'm not a rich guy, but like to support some kickstarter projects from time to time. I don't know what incentives to offer, but I always like the idea of a $1 incentive, or $5 or $10. $50 is a lot to ask for bottom level. I've often said I wanted to make a humorous website, and see if I could get a million people to donate $1 each to me, with the promise of donating 50% to charity.
 
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A lower incentive is actually easier. A simple thanks in the end credits, and/or a thanks on the Facebook page. Fun things like that, that doesn't really cost you anything. You can split up your $50 incentive. $25 for a DVD. $15 for an unsigned movie poster. Things like that.
 
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MaximusXXX said:
I assumed people could donate any amount. I state all donations are appreciated.

I just can't really give you anything back for a $5 donation aside from formal thanks.
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thats actually all I would expect from donating 5 bucks.

People want things. More options we have - better.

$1 - thank you, you 're awesome!
$5 - cool! We'll mail you a handwritten thank you note!
$10 - Above and a "thank you" in credits
$20 - Above plus a signed photo with the cast
$30 - Above plus a dvd
$50 - BluRay, Signed Poster (by everyone) & T-Shirt (with the movie logo)

and so forth and so on.. Make them want things!
I'm sure I can donate whatever I want, but what will I get? why should I donate not 5 bucks, but 10?
 
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Also, have you looked at the price of your rewards at all? I doubt you could afford to make your film if you're giving away a Blu-Ray, a T-shirt and a poster for $50.
The points about lower amounts are very valid, I've seen projects make thousands with just $15 rewards (digital downloads for example)!
 
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MaximusXXX said:
AHHHHH.

Understood. This is news to me.


Alright then, $500 for an EP it is. I mention in the ad that their name will be seen at festivals and on the DVD.
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It's because if you're offering payment in return you're essentially selling securities which falls under the SEC. In order to sell securities you have to register with the SEC a public offering document which can cost upwards of $150,000; or you PRIVATELY SOLICIT from "accredited" investors (people that make over $200,000 annually). If you make public solicitation for investment, you are issuing what is known as "general solicitation", which is illegal and could land you up in jail for quite a few years and get you heavy fines on top of it.
 
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