Project Horseshoe 2012: Kickstarter and Training Designers
I'll report to you about two topics discussed at this year's Project Horseshoe conference.
Defense Grid 2's Kickstarter
So, I went to business school at MIT a long time ago, and one of the main methods of learning about business is carefully going over and discussing case studies. A case study is business situation where a company has one or more challenges, and decides what to do about those challenges. They usually have a bunch of data that that helps point the way toward what a good decision would have been.
Jeff Pobst of Hidden Path Entertainment presented what I think is the "perfect" case study about his company using Kickstarter to raise money for Defense Grid 2. They had a clear goal, they had a very large number of possible ways of going about it, and they had a mountain of data before, during, and after the Kickstarter campaign. We get the benefit of hindsight to see exactly what ended up mattering in all the confusion, and it even makes a good story because of the punchline.
If I understand things correctly, I think they were probably going to make this game no matter what happened with the kickstarter, but by doing a kickstarter they could potentially make a much bigger scale of a game. That makes sense, and I do think it's a fair use of the fundraising platform.
They asked for $250,000, but I think the REAL goal was to hit $1 million. What makes this case study so interesting is that they treated it like it was going to make $1 million, and they invested heavily and did tons of work to make that happen. They did so much work and tried so hard, that it created even more data for us to look at, to see what really ended up mattering and what didn't. While publicly, the project appears successful because it raised $271,726, Jeff's presentation showed that the real story is it wasn't as successful as it appeared. They really made less than $50k (that can be put toward development) on the kickstarter after subtracting all the costs they put into it. It was sure a good try though, and it meant they got to take a good solid swing at the $1 million mark, but not lose money in trying for it. It's also generous of Jeff to share this data with developers, so that we can all learn from it. Most companies consider it way too private to share.
Jeff Pobst seems to know everyone, so he was able to talk with Tim Schafer, Jordan Mechner and other big names about their experiences. Everyone says the video at the top of your kickstarter project is really important. Having a well known figure pitch the product also helps, and they felt they didn't have that so they put twelve different famous game industry people in their video, endorsing their product.
You have a lot of knobs to adjust in a kickstarter project. How many tiers of rewards should you have, what exactly should each one be? How important is the reward structure compared to all the other things going on? Is it super important to have some rewards that are really really expensive? Or does that only matter like 1% in the end? What about upselling people? That means getting a person who pledged to later decide to change their pledge to a higher amount. Jeff had heard that this was actually the single most important factor of anything: how good you are at getting that upsell.
There's a whole bunch of other things you might focus on too. Using Facebook and Twitter to make sure your current fans know about the kickstarter. Also, getting mentioned on various news sites. They hired a PR firm who was relentless in following up many, many times with every gaming site they deemed important to their cause. You can also used paid advertisements to get the word out: google ads, facebook ads, or ads targeted on specific sites like Penny Arcade.
Hidden Path also did some less traditional forms of promotion. They made new content in their current game that was designed to hype people for the new game. They even had the opportunity to work with Valve by putting some Portal 2 ARG (alternate reality game) stuff into their game, in order to promote Portal 2, and this also helped promote their own stuff.
Finally, Jeff had the clever idea of approaching companies too big to participate in kickstarter, and made them an offer. He said if those bigger companies would give him free stuff to give away, he could promote them and their brands through kickstarter. This also gave these companies reason to mention his particular kickstarter project. It took months of negotiation to pull off, but Jeff finally got 100 gaming mice from Razer and 600 video cards from AMD. He pulled it off.
And now for the look back at it all. Of all this stuff they spent all this time on, what really did anything in the final analysis?