How Does Kickstarter Pay Over Time Work?

Key Concepts

• Kickstarter Pledge Over Time: A feature allowing backers to split their pledge into three equal payments over three months.
• Conversion Rate Optimization: Using payment flexibility to lower the barrier to entry for high-ticket items.
• Omni-channel Marketing: Integrating the "pledge over time" messaging across email, social media, and campaign updates.
• Backer Trust & Transparency: The necessity of maintaining consistent communication post-campaign to ensure subsequent payments are processed.
• Risk Mitigation: Using the feature to de-risk the purchase for backers hesitant about high price points or project delivery.

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1. Overview of "Pledge Over Time"

The "Pledge Over Time" feature is a significant update to the Kickstarter platform that allows backers to pay for their rewards in three installments over three months.

• Mechanism: If a backer pledges on June 1st, subsequent payments are processed on July 1st and August 1st.
• Financial Terms: At the time of the video, there are no additional fees, no third-party processing charges, and no interest applied to these payments.
• Eligibility: This feature is available to all creators, though it is most strategically beneficial for high-ticket items such as tech gadgets, furniture, or premium physical products.

2. Operational Framework & Payment Failures

Creators must understand the technical handling of payment failures to avoid revenue loss:

• First Payment Failure: Backers have 7 days to update their payment information.
• Second/Third Payment Failure: Backers have 14 days to resolve payment issues.
• Policy on Non-payment: If a backer fails to complete the second or third payment, the initial payment is treated as a donation/contribution. The creator is not required to refund the initial amount, and the backer is no longer obligated to fulfill the remaining balance.

3. Strategic Marketing & Implementation

Sal Brigman emphasizes that this feature is a powerful tool for increasing conversion rates, but it requires a proactive marketing strategy:

• Communication: Creators should explicitly mention this feature in their marketing copy across all channels (email, social media, and Kickstarter updates).
• Addressing Objections: Use the feature to "de-risk" the purchase for backers who are price-sensitive or skeptical about the creator's ability to deliver.
• Transparency: Maintaining a high level of engagement post-campaign is critical. If a creator stops posting updates or responding to comments, backers are less likely to maintain their payment schedule for the second and third months.
• Visual Integration: Include information about the payment plan in campaign graphics and reward tier descriptions.

4. Impact on Fulfillment

Creators must account for the staggered payment schedule in their project planning:

• Cash Flow: Because funds are collected over three months, the total capital available for manufacturing (e.g., injection molding) or production may be delayed.
• Timeline Management: Creators should adjust their fulfillment expectations to align with the reality that some funds will not be fully collected until 90 days after the campaign ends.

5. Notable Quotes

• "Marketing is as much a driving traffic as it is really building a positive brand image and making sure that backers trust you and see that level of transparency all the way from start to finish."
• "You really have no longer have an excuse when it comes to this area of your life. It is the easiest time to be able to turn your passion into profit."

6. Synthesis and Conclusion

The "Pledge Over Time" feature represents a shift toward more accessible crowdfunding, particularly for high-end products. By lowering the financial barrier for backers, creators can increase their total funding and conversion rates. However, success depends on a robust, multi-channel marketing strategy that emphasizes transparency and consistent communication. Creators must treat the post-campaign period as an active marketing phase to ensure that the second and third installments of the "pledge over time" payments are successfully processed, thereby securing the project's financial foundation.