Quote:
Originally Posted by Raellus
But first you've got to develop a product and get it to market, and that takes capital. KS is a way to cut out the middle man. It's a great concept, when it works. Word of mouth only works once the product's in people's hands. Getting it there is the first hurdle; KS is a way to get over it.
What's curious to me is that FL is an established industry entity- they probably don't need KS to get v4 off the ground. It seems like they could get the start-up funds without KS, but that would probably entail owing interest on loans (or dividends to investors), and/or giving up a share of the profits (yeah, I've watched a few episodes of Shark Tank). With KS, all they owe is the product promised to their backers. It seems like a better deal for them, and maybe a faster track for potential customers.
I was thinking about this earlier today. The v4 KS backers are essentially pre-ordering, and pre-paying for the game. It's a great way to generate start-up capital, but is it a model with sustainable revenue generating possibilities? I just wonder what their long-term strategy is.
And that's where you're right on the money, SSC (pun intended)- if FL wants to sell more product than what their KS backers have essentially already pre-purchased (to the tune of $500k), the product is going to have to be good. Backers are going to have to be impressed/pleased enough with the core system to intro it to their gaming group, or recommend it to friends, or praise it on the interwebs- not to mention purchase follow-up products in the line. Otherwise, the buck is literally going to stop with the KS backers and the core box set.
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And that very much sums up my take on crowdfunding for things like this.
I've dabbled in crowdfunding over the years and when it comes to things like raising funds to, for example, build wells in remote communities or help start community businesses, the overall outcomes are generally positive for the short & long term.
I do appreciate the desire to mitigate risk by cutting out the need to raise capital, take loans or get investors but when it comes to crowdfunding for hobbies and the like, it really does feel sometimes like it's a quick grab for cash and there is no intention of supporting the product for the long term.
For a company like Free League or Clockwork Publishing, I can understand the desire for crowdfunding because even though they are well established they're still small companies and don't make massive profits.
But still, given Free League's track record of a big release at the beginning and very little to no product development/release after a few years, I am concerned that this kickstarter will give them the money they need to push a bunch of product out in the first year and then they will rest on their laurels and do nothing else for this 4th edition (except to rely on fan-made content to keep interest alive). With all the cash they'll be getting from this kickstarter, they don't really have to do much work to keep the company financial for the next couple of years - that's why it concerns me. Will they simply figure "Hey we've done all we have to, lets put our feet up until we come up with some new game" or do they truly intend to develop the T2k setting for a longer term?