"All or Nothing" or "You Earned It You Keep It"... Why Not Both?

After reading a comment by an avid fan of the "All or Nothing" system of payment that Kickstarter employs, I felt like it was time for us to revisit the notion. Obviously, there are advantages to both Kickstarter's and IndieGoGo's method, particularly as it applies to game development.

On the one hand, we certainly don't want developers to get saddled with a lower amount that they need nor do we want people to feel like they just contributed to nothing and feel "ripped off" by a game never being fully developed.

On the flip side, however, there are certain advantages of a developer getting at least some of the money owed to them. Let's face it, developers are a resourceful bunch. Just because they might ask for $2000 but only received $1000 doesn't necessarily mean that the project can't finish with the money contributed. It just means that the developer might have to work a little harder to get something done.

And thus we have our dilemma. Two different system, both with which has its own advantages. So why not a compromise?

What we're proposing is a marriage between the two systems. Let's say a developer needs $5000. Our thinking is that should the developer raise at least half that amount of money they could realistically be able to finish their project. As such from the half-way point on we will ensure that developers are entitled to the money they've risen minus our 10% fee (and PayPal fees) for not reaching the set goals. This is a window that basically allows for developers to take what they've got and work with it on their project. Should a developer still not feel like this is enough then he/she can request to have it all refunded 100% back to the contributors at no cost to them. Should said developer raise less than half of the $5000 goal then we will refund all contributors.

Using this method should keep developers honest about their funding expectations and not allow them to simply create a project to "cash in." However, it also won't penalize entirely people who fail to make their desired goal.

Feedback is appreciated.