Home > Uncategorized > Should Kickstarter’s Commission Rate Be Reduced on Big Money Projects?

Should Kickstarter’s Commission Rate Be Reduced on Big Money Projects?

December 4, 2013

MUSIC • TECHNOLOGY • POLICY

Nobody in their right mind would ever give a money finder a flat “finder’s fee” when the finder is raising large amounts of money (see “Lehman Formula“).  After the religious experience of the Amanda Palmer Kickstarter project, followed by Veronica Mars and Zach King, it occurs to me that Kickstarter is making too much money on these deals.  (This assumes, of course, that experienced Hollywood types just hand over Kickstarter’s 5% vig without question–which is itself a question, but one I cannot answer yet.)

When these stars–yes, the hated star system–come to Kickstarter, they could literally go to any of several sites to raise their money.  Or do it themselves as Lewis CK demonstrated.  The fact that it’s Kickstarter is of no significance at all.  Kickstarter’s 5% would mean it made $285,000 and counting off of Veronica Mars for doing essentially the same amount of work as they…

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