Well we've sort of come to an impasse here at 8-Bit Funding. We've unfortunately been unable to work with PayPal in extending the refund period to 120 days instead of the 60 days normally allowed. They basically told us, flat out, "no." As such we've been forced to give up the "Grace Period" until such time as we are able to either find a new payment processor or work out some sort of deal with PayPal.
The good news is that:
1. This does NOT apply retro-actively. If you've already made a contribution to a project, it is still safe under our former "Grace Period" rules, out of our own pocket if need be.
2. We are removing the 10% fee altogether. Developers will retain the entire amount they've collected minus our normal 5% fee.
This really isn't how we wanted to run the site as it leaves everybody a little more vulnerable. However, we assure you that we'll continue to screen projects that look shady to ensure that any contribution opportunities are safe.
So, on a final note: Please do not contribute unless you are 100% willing to depart with your money. We can't afford to refund anybody else from this point on.
Showing posts with label PayPal. Show all posts
Showing posts with label PayPal. Show all posts
Thursday, March 10, 2011
Thursday, January 6, 2011
"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.
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.
Wednesday, January 5, 2011
Payments: How they work
You probably knew this was coming eventually. Being a development blog we've actually been fairly quiet around here while we've tinkered away on the website. It's coming along quite nicely, in case you were wondering.
Anyway, seeing as how the primary of this website is so that you can raise money for your game, you're probably just a little interested in how you'll go about receiving said money and what's in it for us.
If you're at all familiar with other crowdfunding websites you should know that there is typically a percentage fee involved with working with them and their community. This nominal fee helps pay for things like hosting, web development and of course food and rent, so we can both eat and live.
8-Bit Funding will operate in a similar manner. Currently, in the beginning, we will use PayPal exclusively as a means to accept payments. I can hear your collective groans now. Unfortunately, as a start-up PayPal just makes it way easier for us to get up and running really fast. As soon as we are able we plan to add additional payment methods including direct credit card payments.
Here are the fees we will be charging initially:
Anyway, seeing as how the primary of this website is so that you can raise money for your game, you're probably just a little interested in how you'll go about receiving said money and what's in it for us.
If you're at all familiar with other crowdfunding websites you should know that there is typically a percentage fee involved with working with them and their community. This nominal fee helps pay for things like hosting, web development and of course food and rent, so we can both eat and live.
8-Bit Funding will operate in a similar manner. Currently, in the beginning, we will use PayPal exclusively as a means to accept payments. I can hear your collective groans now. Unfortunately, as a start-up PayPal just makes it way easier for us to get up and running really fast. As soon as we are able we plan to add additional payment methods including direct credit card payments.
Here are the fees we will be charging initially:
- 5% of the total contributions will be charged by us.
- 2.9% + $0.30 of each transaction will be kept by PayPal.
You'll recognize these figures as being the exact same as the ones offered by Kickstarter. After much pondering and debating, we decided to follow in their footsteps given their obvious success. Although they use Amazon and not PayPal, Amazon charges the same 2.9% + $0.30 transaction fee.
Where we will differ from Kickstarter is in their mantra of "all or nothing funding." On Kickstarter if you don't meet your goal, you don't get any money. Personally, I don't like this method, especially when workng with relative abstracts like game development. Just because you could only raise $700 instead of $1000 doesn't mean you won't be able to complete your project.
As such, upon completion of your project, no matter if you have reached your goal or not, we will release what funds you have raised to you. In order to encourage people to not abuse the system however, for all projects that have not reached their funding goal we will be retaining a 10% fee, in addition to PayPal's fees.
Finally, when it comes time to deliver the money we plan on offering two ways to receive your money:
- PayPal instant transaction.
- Check, if you live in the USA.
PayPal will be the defacto payment for international projects.
Upon completion of your project, we will email you to confirm your project and payment. From there you should have the money in your PayPal account within a couple business days. If you request a check, your check will be mailed out within a couple business days (allow up to a week for delivery).
I hope this has been informative. We plan on reviewing all payment fees and methods moving forward to best adapt to both our project starters and our project funders. If we come across a better plan, idea, etc. we will most certainly implement it as soon as possible.
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