How Long Does Kickstarter Take to Pay?

Key Concepts

• Kickstarter Payout: The process and timeline for receiving funds after a successful campaign.
• Late Pledges: A feature allowing backers to contribute after the campaign ends.
• Pledge Manager: A tool for managing add-ons, upsells, and post-campaign revenue collection.
• Pledge Over Time: A payment plan allowing backers to split contributions over three months.
• Failed Payments: Protocols for handling declined credit cards during and after a campaign.
• Post-Campaign Fulfillment: The critical phase of maintaining communication and trust to ensure successful delivery.

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1. Payout Timelines and Processes

Successful campaigns are defined as those that meet or exceed their funding goal before the timer hits zero. Once successful, the payout process follows these specific timelines:

• Initial Campaign Funds: Kickstarter initiates the payout approximately 14 days after the campaign concludes. Depending on the creator's financial institution, funds typically arrive within 3 to 14 business days thereafter.
• Late Pledges: These are processed on a 7-day cycle. The first payout for late pledges occurs 21 days after the campaign ends, with subsequent payouts following the 7-day cadence.
• Pledge Manager Funds: These are paid out 14 days (2 weeks) after they are received, starting 3 weeks after the launch of the pledge manager. Creators must keep the pledge manager open for at least 3 weeks.

Note on Fees: The amount received is net of Kickstarter’s 5% platform fee and applicable credit card processing fees.

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2. Handling Payment Failures

Managing failed transactions is vital for maintaining project momentum and ensuring accurate fulfillment:

• Standard Pledges: If a payment fails, Kickstarter notifies the backer every 48 hours for 7 days. Salvador Briggman strongly advises creators to send personalized messages to these backers, as they may simply be busy or need reassurance regarding the project's progress.
• Pledge Over Time:
  • First Payment: Backers have 7 days to update payment info; otherwise, the pledge is dropped.
  • Subsequent Payments: If a payment fails and cannot be resolved within 14 days, the backer’s previous contributions are treated as a donation, and their participation in the payment plan is terminated.

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3. Marketing and Brand Perception

Briggman emphasizes that marketing does not end when the campaign closes. The "post-Kickstarter" phase is critical for long-term brand building.

• The "Trust" Factor: Crowdfunding is not retail; it involves a manufacturing and fulfillment timeline. Backers, especially those on payment plans, monitor project updates and comments for "trust signals."
• Communication Strategy: Consistent updates and active engagement in the comments section are essential. Failure to communicate can lead to negative press, dropped pledges, and a loss of momentum for future projects.
• Strategic Advice: Treat the post-campaign phase as a continuation of the brand story. Transparency and responsiveness are the primary tools for maintaining credibility.

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4. Notable Quotes

• "Crowdfunding is not Amazon. Crowdfunding is not buying something and going to receive it in 2 days. It's going to take time for you to fulfill those rewards... and you want to maintain that trust and that credibility."
• "Your marketing through the post-Kickstarter phase is just as important, if not more important, than your campaign marketing."

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5. Synthesis and Conclusion

The transition from a successful campaign to the fulfillment phase is a high-stakes period that requires administrative precision and proactive communication. Creators must be aware of the specific 14-day, 21-day, and 7-day cycles associated with different funding streams (initial, late, and pledge manager).

Beyond the technicalities of banking, the most significant takeaway is the necessity of post-campaign marketing. By maintaining a consistent narrative, responding to backers, and proactively managing payment issues, creators protect their reputation and build a loyal community that will support future endeavors. For those seeking further guidance, Briggman recommends his book, The Kickstarter Launch Formula, and professional coaching to navigate the complexities of the crowdfunding ecosystem.