Top 8 Benefits of the Kickstarter Pledge Manager

Key Concepts

• Pledge Manager: Software that facilitates the collection of essential information from backers for reward fulfillment.
• Backer Friction: The inconvenience or confusion backers experience when navigating different platforms or processes.
• Add-ons: Additional products or upgrades that backers can purchase through the pledge manager.
• Product Variants: Different options for a product, such as colors, sizes, or styles.
• Shipping Costs: Expenses associated with delivering rewards to backers.
• Taxes and VAT: Levies collected by governments on transactions.
• Tariffs/Charges: Import duties or fees imposed on goods.
• Address Validation: The process of verifying the accuracy and format of shipping addresses.
• Tracking Numbers: Information provided by shipping carriers to monitor the progress of a package.

Kickstarter's Pledge Manager: Top Eight Benefits

This video outlines the significant advantages of using Kickstarter's newly released pledge manager, a feature that has been highly anticipated by creators for over a decade. The pledge manager is described as software designed to simplify the process of gathering crucial information from backers, enabling creators to fulfill their rewards efficiently.

What is a Pledge Manager?

A pledge manager acts as an intermediary software that allows creators to collect vital information from their backers. This information includes essential details like shipping addresses, product preferences (e.g., colors, sizes), and tax-related payments. Backers interact with the pledge manager to provide this data and settle any outstanding payments, which then allows creators to proceed with reward fulfillment.

Benefit 1: Reduced Friction for Backers

While third-party pledge managers like Backer Kit, Pledge Box, and Gamefound have existed for years, they often require backers to leave the original Kickstarter platform. This can lead to confusion and a less seamless experience. Kickstarter's native pledge manager, however, maintains a consistent user experience from the initial campaign backing through to reward delivery, minimizing potential confusion for backers.

Benefit 2: Increased Revenue Through Upselling

The pledge manager provides an opportune moment to encourage backers to purchase additional items. By leveraging the existing interaction, creators can easily offer add-ons or make existing items available for追加 purchase. The speaker emphasizes that in their ten years of experience, they have "never once, and I mean never, seen a creator not sell more stuff in the pledge manager," highlighting it as a "no-brainer" for revenue generation.

Benefit 3: Collection of Product Variant Information

A significant challenge for creators is gathering specific product choices from backers. For instance, if a t-shirt campaign offered multiple sizes, backers cannot select their preferred size during the initial pledge. The pledge manager resolves this by allowing creators to solicit these variant choices after the campaign concludes, ensuring accurate manufacturing orders and eliminating guesswork.

Benefit 4: More Accurate Shipping Cost Calculation

While it might seem logical to charge shipping upfront, the speaker strongly advises against it. The primary reason is the time lag between a backer's pledge and the actual shipment of rewards, which can span months. Shipping rates are subject to fluctuation. By using the pledge manager to charge shipping closer to the fulfillment date, creators can account for current rates and avoid financial losses, a common issue when estimating shipping costs too early.

Benefit 5: Collection of Taxes and VAT

Taxes and Value Added Tax (VAT) are critical but often complex aspects of crowdfunding. Kickstarter's pledge manager simplifies this by acting as a "marketplace facilitator." This means Kickstarter collects and remits taxes to the appropriate authorities. Currently, this functionality is available for the US, UK, and EU. For detailed information, creators are advised to consult Kickstarter's help articles.

Benefit 6: Management of Tariffs and Charges

Tariffs, or import duties, can significantly impact project costs, especially for creators manufacturing overseas and shipping internationally. Kickstarter's pledge manager offers the flexibility to add and collect these tariff charges from backers if the creator chooses to pass them on. While not mandatory, this feature is beneficial for mitigating high tariff costs.

Benefit 7: Confirmation of Backer Addresses

Given the extended period between pledging and receiving rewards, accurate shipping addresses are paramount. Backers may move during this time. Kickstarter's pledge manager allows backers to update their addresses before fulfillment. Furthermore, it includes address validation to ensure addresses are entered in the correct format, which can prevent costly issues with returned packages.

Benefit 8: Distribution of Tracking Numbers

Once rewards are shipped, creators can upload a CSV file containing tracking numbers to the pledge manager. Kickstarter then automatically emails these tracking numbers to backers. This proactive communication helps reduce the volume of "where's my order?" inquiries, improving the experience for both creators and backers.

Conclusion and Further Resources

In summary, Kickstarter's pledge manager offers a powerful suite of tools to streamline the post-campaign process, from enhancing backer experience and increasing revenue to managing complex logistical and financial aspects. For those seeking to deepen their understanding of crowdfunding, the speaker offers a free audiobook of their book, "Crowdfunded," via a link provided in the video description. Viewers are encouraged to like the video and subscribe for more content.