Understanding Kickstarter Fees: Successful and Unsuccessful Project Costs

When managing a crowdfunding campaign, one of the key factors to consider is the platform's fees. Many wonder if Kickstarter charges any fees for unsuccessful projects. This article delves into the specifics of Kickstarter's fee structure, addressing common misconceptions and shedding light on the actual costs involved.

Do Kickstarter Fees Apply to Unsuccessful Projects?

The straightforward answer is no. Kickstarter does not impose any fees on project creators for unsuccessful projects. Unlike some crowdfunding platforms that might charge for every campaign whether it meets its funding goals or not, Kickstarter's model is more straightforward.

One of the reasons for this is that Kickstarter does not process payments for unsuccessful projects. They do not charge credit cards or attempt to collect money before a project's end date. They only process payments when a project reaches its funding goal. Even in this case, Kickstarter passes on Amazon's processing fee, which ranges from 3% to 5%, to the project creator.

Are There Costs for Unsuccessful Projects?

While Kickstarter itself does not charge fees for unsuccessful projects, there are certain operational expenses that come into play for running an online business. In this section, we will explore the basic costs associated with operating a crowdfunding campaign on Kickstarter.

Storage Space and Server Costs

Every Kickstarter project requires a dedicated online presence to host project pages, pitch videos, and other promotional materials. This necessitates the use of storage space and server capacity. Providers of these services often charge for their use, and these costs can add up, especially for more complex or visually intensive projects.

Bandwidth Costs

Bandwidth is essentially the amount of data that can be transferred over an Internet connection. As project pages and video content are frequently accessed, Kickstarter needs to ensure that these resources are available without delay. Bandwidth providers also charge for the traffic generated by these pages and videos, which can be a significant expense, particularly for projects with higher traffic or longer videos.

Invoicing and Support Services

In addition to the technical infrastructure, Kickstarter also provides various support services. These include customer support, technical assistance, and invoicing for successful projects. While these services are free for successful projects, they still require resources and may impact the overall efficiency and cost-effectiveness of the platform.

It is important to note that these operational costs are borne by Kickstarter and not directly by the project creators. However, the platform plays a crucial role in ensuring that projects have the necessary resources to run smoothly, and these resources come at a cost.

Conclusion

In summary, while Kickstarter does not charge any fees for unsuccessful projects, there are indirect costs associated with running a crowdfunding campaign on their platform. These costs include storage space, server capacity, and bandwidth. Despite these expenses, Kickstarter remains an attractive option for project creators due to its straightforward fee structure and the support provided for successful projects.

Understanding these costs can help project creators make more informed decisions and manage their crowdfunding campaigns more effectively. Whether you are planning a successful or unsuccessful project, it is essential to be aware of the operational costs involved and to plan accordingly.