As a backer, you are caught in the middle of two parties who have their own motives for wanting you to pledge, and increase your pledge to as much as possible.
The two parties are:
- the crowdfunding platform, such as Kickstarter;
- the project creator.
Let’s look at the motives of a crowdfunding platform. The motives of the project creator are analysed separately.
- The project creator is looking to raise as much funds as possible in excess of the funding goal, in addition to using the campaign and backers as input into understanding the market for the product.
- The crowdfunding platform, such as Kickstarter, wants you to pledge as much as possible because they make the 5% service fee once the project is funded.
- Everything on the crowdfunding platform is structured to fulfill these motives.
Understanding the crowdfunding platform’s motives
Examples of a crowdfunding platform’s motives are: