Influence of Reddit on Kickstarter Campaigns - Alex Samaei May 10, 2015 LSTU E 120 Internet and Society: Technologies of Politics of Control ...
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HARVARD UNIVERSITY EXTENSION SCHOOL Influence of Reddit on Kickstarter Campaigns Alex Samaei May 10, 2015 LSTU E120 Internet and Society: Technologies of Politics of Control Assignment 4: Final Paper
Background on Kickstarter Kickstarter is a popular crowdfunding website which has secured over $1.5 billion in funding for thousands of creative projects since it launched in 2009. The Kickstarter website serves as a platform for anyone who wants to make their project a reality. It does this by allowing ‘creators’ who are over 18 years old to create a free account and post a project under one of the 11 different categories. Creators design a profile describing their project, goals and even an optional video, together this is call their campaign. When launched their campaign page allows anyone with internet access to donate to bring the project to life. It is encouraged that creators offer different reward levels for different monetary contributions from ‘backers.’ So if you donate above a set amount, you would receive some sort of reward, often associated with project. For example, if you donate to a musician they would often give an autographed copy of one of their CDs. Campaigns have between 060 days to raise the necessary funds to meet their goal. If they are successful, Kickstarter sends the creator the money minus a 5% service fee as well as 35% payment processing fee. If a project does not reach the necessary goal then backers are never charged and there is no exchange of money. Because of the deadline creators will often advertise their project on various platforms in hopes of receiving more backers. Background on Reddit Reddit is an online open source network of communities that anyone with an email account can join. Last month the website had over 168K unique visitors from over 200 2 countries. Each user has the ability to create their own ‘subreddit’ for any topic they want (i.e. /r/Barbie, /r/Pokemon, /r/CatPictures) and there is no limit on the amount of subreddits a user can create. Other users can then join these communities and make posts that are Page 1
relevant. Posts are filtered by a ranking of ‘upvotes’ and ‘downvotes’ that are made by other users. The more upvotes a post receives, the higher it gets on the page listing. It is the hope of most users to get enough upvotes to be featured on the front page of Reddit. The front page is a customizable combination of several subreddits that is often viewed by thousands of members before the post dissipates with time. Reddit is a very transparent community which often draws users to post topics that could be seen as controversial on other networks. The Community With over $1 million being pledged every single day a large set of users has evolved from Kickstarter in the form of backers and creators. Out of the entire pool of backers an 18 impressive ~30% are repeat who have funded two or more projects. The communication between these backers has been limited on its website due to a lack of a proper forum for discussion. Also, a user can only post comments to a project page if they are already a backer for that project and would have to privately message the creator otherwise. This causes Kickstarter users to discuss issues on various other websites including Twitter, Tumblr, and Reddit. But due to it’s popularity and transparency, Reddit has risen to be one of the main platforms where discussions take place. In these forums users are meant to ask questions such as: how to best advertise their Kickstarter page, promote interesting projects they’ve found, and give advice on approaching a campaign launch. The problem right now is, that’s not all that is being discussed. The Reddit community seems to functions as a soapbox for the Kickstarter users to voice their opinion. It can be used to gain funding for dying projects, as well as call out fraud in others. Currently Kickstarter has no control over the inner workings of Reddit, which can put the website into a difficult position if not correctly monitored. We will examine in this paper the Page 2
question: Why do Kickstarter users turn to the Reddit community to discuss specifics of their site? And more precisely, the problem that Kickstarter cannot control their users activities in the Reddit community, but they still affect project campaigns. Controversial Projects Reddit has been known to raise funds for appropriate campaigns such as a “Prismata” 3 4 game and “Tabletop Simulator by Berserk Games” , but this is not always the case. Because of it’s open and diverse nature, Reddit has also helped spring life into projects that go against Kickstarters main rules. Currently Kickstarter tries to keep their governing simple by having three main rules for projects which are as follows: ○ Project: ■ Projects must create something to share with others ■ Projects must be honest and clearly presented ■ Projects can’t fundraise for charity, offer financial incentives, or involve prohibited items Unfortunately when examining the relationship between the two websites these rules do not transfer and Kickstarter is often slow to respond to the large community on Reddit. Instead Kickstarter should be making changes to they way they frame their website to make better use of Lessig’s forces of control. Image 1: Graphical representation of Lessig forces of control 16 Page 3
First we will look at a more lighthearted project that became a media sensation: Potato Salad. This kickstarter was unique to say the least. Creator, Zack Brown, stated “Basically I’m just making potato salad. I haven’t decided what kind yet.” 7 Within a few hours Brown had a call from CNET asking questions about the project and in a few days he would appear in The New Yorker, Good Morning America, and The Verge. According to Kickstarter the campaign 8 had been referenced by the media 2,068 times in over 54 countries. But when the numbers were broken down by The Atlantic it was shown that Reddit was what really pushed funding 7 into the five digits. When the project was posted to /r/Offbeats it gained the momentum it need to reach the front page of the site and hundreds of new backers. Interestingly, most backers only donated $14 and only accounted for ~20% of the total funds. This means that a small group of backers were contributing ~80% of the total donations. Again, this makes sense because with larger exposure the campaign is more likely to attract all types of backers, some of whom are more willing to make larger donations. In the end the project received over $55,000 in funding when it had only asked for $10. While the majority of media was commenting on the comicalness of it all, there was a growing group of antibackers who did not want this project to succeed. The group argued 9 that money would be much better spent supporting the arts, science, or health care. Writer, Rebecca Chao, did a sample study of comments posted on Facebook about the project and found 70% of comments were negative of the use of funding to support this silliness. 7 Many of these comments came from supposed kickstarter users who felt the project was degrading to their community. It is suggested that the project may have been a financial success because it found its niche environment in Reddit. In this instance Kickstarter chose to embrace the success of the project, openly acknowledging it’s humor and even stating that aim high and go big, but small projects are great too.” 8 By the site is a place that users can “ Page 4
making the public statement that they supported creative projects such as these, Kickstarter changed the framework of their market. ‘Potato Salad’ was the first widely publicised project campaign which did not originally serve to “create something to share with others.” This is an interesting example of how Reddit was able to take a project that was doing mildly successful and make it a financial success to the point that Kickstarter reacted. The next controversial case is on a project called “Above the Game: A Guide to 5 Getting Awesome with Women” created by Reddit user Ken Hoinsky on May 29, 2013. This proposed project was to compile a series of post that Hoinsky made on /r/seddit, a seduction themed subreddit, and create a howto book. This was not seen as a violation of of the subreddit's rules and thus would not be removed by the moderators. Still though with the help of Reddit, the project gained popularity and managed to greatly pass it’s $2,000 goal and raise $16,369 dollars. 5 Many Kickstarter users were offended by the content, believing it encouraged sexual assault by making suggestions such as “Don’t ask for permissions. Be 6 dominant.” This led to calls for the project to be shut down, coming from various news outlets such as the Huffington Post and the Guardian. Many stating that they had reported the project at the bottom of the campaign page as the websites architecture requires. Unfortunately Kickstarter did not respond until the deadline had passed and money had changed hands. On July 21, 2013 Kickstarter published an apology letter on their official blog titled “We Were Wrong”, which explained their failure to cancel the project. It was states that they were only informed of the campaign 2hours before the deadline; and because of this did not have time to do a proper investigation. If the websites architecture had been more efficient they may have had an opportunity to perform an investigation. At this time it is unclear why they only had a 2hour window from when a human was informed to the project deadline. The Page 5
letter stated that the project should not have been allowed to launch in the first place due to it’s offensive material towards women and merely fell through the cracks. In a last ditch effort to gain back the public's trust Kickstarter banned all future ‘seduction guide’ projects and 7 donated $25,000 to RAINN, an antisexual assault organization. /r/Kickstarter reacted to the letter with mixed feelings. While many users wrote comments such as “many companies could learn a thing or two from you,” others wrote that “this [project] doesn’t seem offensive at 18 all.” In general though the letter was met with mostly praise, users thanking the company for being sincere and making a real effort to right their wrongs. This did not change the way content is regulated on Reddit or any specific subreddits. Still some criticized that Kickstarter was in fact able to shut the project down or at least pause it with a 2hour window because they had done it before. The project in question was titled Kobe Red, and set its goal to raise $2,400 to mass produce Kobe beefbased jerky, but instead reached over $120,000. There were a few red flags which documentarians, Jay Armitage and Jason Cooper, noticed while creating their film 10 ‘Kickstarted.’ The film was going to do a story on interesting Kickstarter campaigns and tried to reach out to the Kobe Red creator. They found his excuses to avoid meeting and general production concept to be faulty and decided to do more research on the campaign. After some time Cooper took his findings and posted them onto /r/Kickstarter and /r/KobeRed 11 in an effort to expose the campaign as a fraud. Already close to the deadline for the project the campaign was shut down by Kickstarter with only a few hours left to go. This could have been accomplished sooner but because Kickstarter had been slow to respond to reports in the past, it had become the norm for calls of fraud to be made on other sites. Reddit allowed a public forum with very little red tape where they were instantly able to notify thousands of people about the fraud taking place. Kickstarter declined to make a statement, claiming that Page 6
they never discuss why a project is shut down. Soon news stories began to popup which 11 attributed the findings to Armitage and Cooper. It was through their use of Reddit that the fraudulent campaign was exposed. Interestingly Armitage and Cooper were not alone in using Reddit before Kickstarter to expose corruption. In late 2014 a campaign to fund a device titled Anonobox was launched by August Germar which claimed that it could make it’s users online activity private. The campaign had reached $600,000 in pledges when Redditors began to take notice that the 12 device resembled a minirouter already being sold in China. Several posts began to arise on different subreddits pointing out how the product was being misrepresented and was clearly the same as a product being sold in China for a fraction of the price. All requests for interviews from websites such as Motherboard and Mashable, who had heard about the story, were denied. Instead Germar decided to do a Q&A on Reddit itself in hopes of clearing up some of the legitimacy issues at the source. He chose to post on /r/Ananobox, a subreddit 20 that would seemingly be a safe choice to avoid troublesome questions. Unfortunately for him the idea backfired with top posts becoming a platform for 13 backers to point out all the flaws with the device and exploit it as a scam. The project had been reported by various users before it made it to the front page. This only further hurt Kickstarter’s attempt at a norm regulation because it took far too long between when a report was submitted and when a project was shut down. DigitalTrends.com reported when 14 Anonobox was finally shut down by Kickstarter for breaking their rules. Reasoning & Solution All these cases show the Reddit communities influence on many Kickstarter campaigns success and failures. The dilemma that arises for Kickstarter is best states as a Page 7
question: Why are people more vocal about Kickstarter campaigns on Reddit than on Kickstarter? This is a concern because users should be able to solve Kickstarter issues within that site without having to resort to using their “soapbox” (aka Reddit) to gain enough support to make a difference. Architecture Ideally Kickstarter wants its users to be actively involved in the community and call out issues that they see may be violating any rules. By making the appropriate selections at the bottom of a project page a report is generated. Currently all reports go through the Integrity Team who reviews and takes appropriate actions to correct if necessary. By asking users to stay within these simple rules and remaining a third party in all other disputes Kickstarter has attempted to become a neutral voice. They believe this is the best way to become an open platform for creators to feel free to propose any appropriate project. However, the at times slow response of the Integrity Team has backers commenting on Reddit such as “[slow 21 responses] make their site, and their company look bad.” This process came as part of Kickstarter’s policy changes in 2014 in an attempt to 15 streamline project launches. Previously each project needed to be vetted by a ‘community manager’ who would make sure the project is ready for launch and follows all rules provided. The change to an automatedformulaic system, is a reflection on how much Kickstarter has grown since it’s launch in 2009. By automating this screening process the company is able to take approve more projects at a time and keep up with their market demand. Still there is room for further improvement on the design on the website. For example, currently on any project page only backers are allowed to add comments. If you are not yet a backer and have a question, you have the ability to send a private message to the creator. This is a problem in itself because it lacks transparency for other users to see how a question Page 8
was answered. If potential backers could see a more open communication it could help answer doubts that they may have. This could also allow for more users to spot red flags when they arise so that it does not fall solely on the shoulders of the person asking a question to research. Giving more transparency to all users on individual project pages would remove the need to use Reddit to ask questions. Norms The norms followed by Kickstarter users is where the main issue currently lies. It is the norm for many users to turn to Reddit in order to ask questions and raise concerns about a project. Even if the users was more familiar with Reddit, the Kickstarter website should allow for new users to answer questions inhouse. As mentioned above, the project pages do not allow for a user to post comments if they are not a current backer of that project. If a user sees red flags on a project page they are not likely to back the project in order to post a comment and hopefully receive a good answer from the creator. So the backers either report the project, which creates more complaints for the Integrity Team to go through, or they turn to another website. By turning to Reddit, a site with hundreds of thousands of users with varying expertise, potential backers can get quicker responses. A change of norms is needed for Kickstarter to continue on their path of growth while maintaining/improving user trust. It needs to be a user's first response to post on Kickstarter, reach out to their customer service, and solve issues inhouse. And the way to go about changing these norms is to further improve the architecture of the site to make it the natural response. Ideally complaints/reports would have a quicker turn around instead of the varying timeline there is now. Giving an actual response with brief reasoning would help users feel more connected to the community on their own website. And doing so in a timely fashion allows each individual to feel like they have a larger impact than they would if all the Page 9
complaints go unanswered or unreplied for days. Ideally a user would be informed of exactly where in the process their complaint is: Submitted, Waiting to be Evaluated, Being Evaluated, Decision Rendered. The more a user is informed of where they are in a process the more involved they feel. Of course the base issue here still remains timeliness and openness from Kickster. These new processes would need to be expedited and given a solid answer to all possible complaints. Last, the openness of Reddit is what attracts Kickstarter users to post. Kickstarter should be able to start an open online forum which could be divided by project category and allow users to generate original posts and have open discussions. These posts need not be tied to individual projects, but can be when desired. Allowing users to pitch ideas and discuss controversial projects within the confines of this forum could allow Kickstarter to track sensitive projects closely and hopefully prevent another “Above the Game” project fiasco. Conclusion In conclusion, the Kickstarter community has emerged within Reddit due to its immense power in numbers. By using Reddit projects can gain backing when they might not have, or be exposed for a sham. The conflict lies in Kickstarters slow response and openness with complaints with its users which forces them to turn to Reddit in situations which ideally would be handled by the former. If Kickstarter changed it’s design to allow more transparency for users and a real platform for discussion, then users might not need to turn to other parties in order to bring to light issues. This would also help the Kickstarter community to manage some of the projects which do not sit well with them ethically. Reddit will continue to be a powerful voice to gain funding, but it needn't be a soapbox to expose corruption within another community. Page 10
Essay Portion Word Count: 3298 Sources 1 Barnett, Chance. August 29 2014. “Crowdfunding Sites in 2014”. http://www.forbes.com/sites/chancebarnett/2014/08/29/crowdfundingsitesin2014/ 2 Reddit. April 2015. “About Reddit”. http://www.reddit.com/about/ 3 Falero, Michael. November 18 2014. “Prismata Developer Recounts How Reddit Saved His Game, Redditors Respond by Funding His Kickstarter”. http://www.gameskinny.com/dyfqu/prismatadeveloperrecountshowredditsavedhisgamer edditorsrespondbyfundinghiskickstarter 4 Briggman, Salvador. 2013. “How Reddit Can Ignite Your Kickstarter Campaign”. http://www.crowdcrux.com/redditcanignitekickstartercampaign/ 5 Hoinsky, Ken. June 19 2013. “Above the Game: A Guide to Getting Awesome with Women”. http://web.archive.org/web/20130621142443/http://www.kickstarter.com/projects/tofutofu/abov ethegameaguidetogettingawesomewithwom/posts 6 Huffington Post. June 21 2013. “Above the Game: A Guide to Getting Awesome with Women, Raises $16,000, Complaints”. http://www.huffingtonpost.com/2013/06/19/abovethegamekickstartertofutofu_n_3466538.ht ml 7 Chao, Rebecca. July 24 2014. “The Secret to that Potato SaladKickstarter Campaign’s Success”. http://www.theatlantic.com/technology/archive/2014/07/thedatabehindthatpotatosaladkick starter/374998/ 8 Benenson, Fred. August 5 2015. “Potato Salad: By the Numbers”. https://www.kickstarter.com/blog/potatosaladbythenumbers 9 Rife, Katie. July 7 2014. “Please Don’t Give This Kid Money For His Potato Salad Kickstarter”. http://www.avclub.com/article/pleasedontgivekidmoneyhispotatosaladkickst206584 10 Larson, Eric. June 21 2013. “How the ‘Biggest Scam in Kickstarter History’ Almost Worked”. http://mashable.com/2013/06/21/kickstarterscam/ 11 jmaxcpr. 2013. “Likely MAJOR Kickstarter FRAUD Uncovered: Kobe Red”. http://www.reddit.com/r/kickstarter/comments/1g9utn/likely_major_kickstarter_fraud_uncovere d_kobe_red/ Page 11
12 Santus, Rex. October 15 2014. “Redditors Accuse Popular Kickstarter Project of Misleading Customers”. http://mashable.com/2014/10/15/anonaboxkickstartermisleadingcustomers/ 13 Cox, Joseph. October 16 2014. “How Anonabox went from privacy savior to scam in less than a week”. http://motherboard.vice.com/read/howanonaboxwentfromprivacysaviortoscaminlessth anaweek 14 Hahn, Jason. October 18 2014. “Kickstarter Suspends Controversial Anonabox Router Project for Breaking the Rules”. http://www.digitaltrends.com/computing/kickstartersuspendscontroversialanonaboxrouterp rojectbreakingrules/ 15 Frost, Joe. June 12 2014. “Is Kickstarter Compromising Integrity in a Rush to get Bigger”. http://www.techly.com.au/2014/06/12/kickstartercompromisingintegrityrushgetbigger/ 16 Lessig, Lawrence. 2010. “Code 2.0 Chapter 7” https://www.socialtext.net/codev2/what_things_regulate 17 Reddit. 2014. “The Effects of Being Mentioned by a Big Subreddit”. http://www.reddit.com/r/dataisbeautiful/comments/2c55qr/the_effects_of_being_mentioned_by _a_big_subreddit/ 18 Kickstarter. 2015. “Kickstarter Stats”. https://www.kickstarter.com/help/stats 19 /r/Kickstarter. 2014. “We were wrong Blog Post”. http://www.reddit.com/r/kickstarter/comments/1gsrlh/we_were_wrong_the_kickstarter_blog/ 20 August Germar. 2014. “Hi I’m August Germar. AMA”. http://www.reddit.com/r/anonabox/comments/2ja22g/hi_im_august_germar_a_developer_for_ the_anonabox/ 21 Reddit. March 2015. “So, about that alpaca Kickstarter”. http://www.reddit.com/r/YarnAddicts/comments/2ycxpb/so_about_that_alpaca_kickstarter/ Page 12
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