I'm obviously a big fan of crowdfunding platforms like Kickstarter, but I've always argued that it's just one of many models that content creators can use to succeed today. In fact, for a long time, I've felt that the biggest thing that was missing from Kickstarter was any sort of ongoing payment system. It's entirely project based, and thus it's not the best tool for ongoing revenue. For many years I've been interested in ideas for more ongoing revenue streams, and even proposed the idea of "subscribing" to a band's output nearly a decade ago. So it's good to see that some folks are exploring some of these ideas in much more detail.

I met Jack Conte a few years ago, after having written about him and his band Pomplamoose a few times. I'd always been impressed by Pomplamoose's ability to really connect with their fans and to build a way to support themselves via that strong connection. But in my brief interactions with Jack, it quickly became clear that he thinks deeply about different ideas for revenue models, and so it's little surprise that he's now built what seems like a pretty cool platform for ongoing support for content creators. It's basically a platform, like Kickstarter, but rather than backing a project, you back the production of certain types of regular content. So, for example, you could promise that you'll pay $5 every time Jack releases a new video (and you can put limits on how much you pay, so he doesn't get away with suddenly releasing 1,000 videos at once). It's called Patreon, and it's got a nice, simple video explaining how it works: I'm sure some will argue that this is just a "paywall," but it's actually the opposite of that. People aren't paying you to get access to the content. The content will be available elsewhere (often for free). They're paying to support your continued production (i.e., supporting future production, rather than paying to access past productions) and they can get extra benefits (added value) as supporters, such as Google Hangouts with the creators. Some of this is quite like a few of the popular subscription options in our Techdirt Insider Shop, though rather than monthly, the amounts are triggered per creation (I'm not sure that would work for a blog like ours that produces a bunch of content every day, but I could see how it would be quite cool for less frequent types of creative endeavors).

Either way, I'm glad to see some new platforms popping up like this. For a little while, it had been getting kind of annoying to see just how many Kickstarter clones were popping up (including a new one from Donald Trump?!?). You never know, of course, if Patreon will catch on, but conceptually the model makes a lot of sense for many types of content creators. In some ways, it seems like a better model for connecting with "true fans" than something like a Kickstarter. While Kickstarter has the appeal of "this is a big event, join us!" it would be nice to see some more ongoing, sustainable model platforms become popular as well.

Back when we first launched the Insider Shop, we made two PDF ebooks available at any price you choose: Mike's Approaching Infinity (on new business models and the economics of abundance) and our Sky Is Rising report on the state of the entertainment industries. More recently, we launched three fiction titles by our own Tim Geigner—Digilife, Echelon and Midwasteland—also available on a pay-what-you-want basis. They were an instant hit, and we're in the process of preparing new ePub versions.

The thing we noticed right away was that a lot of people were choosing to pay, even though you can download all the books for free. Almost half of all book downloads were paid, with most people choosing the default $5 per book—even when buying four or five books at once—and several going above and beyond, with a few even paying $20 for a single title.

At this point, there's plenty of evidence that people will gladly, even eagerly, pay to support creators despite being given the option of getting something for free—and we're glad to add the success of our Insider Shop ebooks to the list. For those who want a closer look at the numbers, I put together a quick infographic:

Embed This:
<a href="http://www.techdirt.com/articles/20121210/12422821338/infographic-people-will-pay-to-support-creators-even-when-free-is-option.shtml"><img src="http://cdn.techdirt.com/i/ig/ebook-infographic.png" title="Techdirt Insider Shop Pay-What-You-Want Ebook Sales" width="560" /></a>

Thanks to everyone who has downloaded our ebooks, whether you paid $0 or $20 or anything in between! If you haven't gotten your copies yet, head on over to the Insider Shop and check them out.

For a while now, we have been highlighting many stories about the successful crowdfunding of movies, music, books and games. This new source of funding for creative content has been an exciting time for indie artists and those wanting to break free of traditional funding models. However, this funding model is not without its risks, something that Kickstarter has recognized with a change in the way projects are presented.

So what exactly happens when a successfully funded project fails to meet its completion goals? Well, reader Marcus Wellby sent along a story about one successfully funded game project that has hit some major roadblocks to completion. Haunts: The Manse Macabre, although successfully funded, has run out of money and programmers and was in danger of never being completed.

Haunts sought $25,000 (£15,590) from Kickstarter but the project proved popular and meant the game's developers got $28,739 (£17,895) to fund completion of the game. Prior to the funding appeal, Haunts creator Mob Rules Games had spent about $42,500 getting the basics of the title completed.

The end result was supposed to be a haunted house horror game in which players could take on the role of the house's inhabitants or intruders investigating what lived within it.

Now Mob Rules Games boss Rick Dakan has revealed that the game's development has prematurely halted.

"The principal cause for our dire condition is that there are no longer any programmers working on the game," said Mr Dakan in a blogpost updating backers.

You can see Rick's full explanation of the problems the game has had over at Kickstarter. With all the cash and programming problems, Rick felt so bad about letting down the backers that he was willing to refund, out of his own pocket, anyone who wanted their money back. While most companies will silently kill off projects that do not meet expectations, his forthcoming post about the state of affairs actually had a positive effect on the project's future.

The next day, Rick posted the following update.

I've had a lot of interested emails from programmers offering their help. Thank you all very much! There's a lot to sift through and I'm not sure what the best way to proceed will be, but I am very encouraged by these offers and want to try and figure out the best way to take advantage of this opportunity. I've reached out to a good friend of mine who's an expert in collaborative open source development, and he and I will talk soon. I also want to discuss this exciting development with Blue Mammoth and get their take on it.

By being open about the problems he was having completing the game, the community came in to offer their help. Granted, this is a unique circumstance, but having such a dedicated fan base is wonderful. Had he let the game fester with no updates for longer than he had, he might have been met with more hostility than encouragement. That would have made it far more difficult to find any kind of solution.

Finally, in the most recent update, Rick announced that after considering the situation and the best way to move forward, he will be open sourcing the game with over thirty programmers offering their help to complete it.

We're going to finish developing Haunts: The Manse Macabre as an Open Source project. The source code has been open from the beginning, but now we're going to fully embrace open development model and making the game entirely open source. We've had about thirty programmers from a variety of backgrounds, including many proficient in Go, who have stepped forward and offered to help finish the game. We're still in the process of setting up the infrastructure for issue tracking, source control, documentation wikis, and other tools necessary before we can begin in earnest, but we hope to have that all up and running within the next week or two.

While this story is far from over, it is a great lesson in the risks of any project whether crowdfunded or not. Projects can fail, they can have problems, they can be shuttered. The key takeaways from this story, however, are (1) being transparent (rather than hiding) with supporters can do wonders and (2) being flexible and willing to change course can help. Rick notes that there's been plenty of press coverage about the supposed "failure," but much less about what happened after...

We've gotten a lot of press coverage, most of it in the general vein of, "Look, see, Kickstarter projects can go bad, so be careful!" I think that's a fair and useful point to make. But we're committed to being the follow-up story. You know, the underdog who comes back from the brink of collapse and proves a resounding success!

Yes, this is a story that highlights the risk in any kind of crowdfunding endeavor. Backers may be out the money they put in with nothing to show for it. However, if those who run these projects will be open and honest through the whole process, stumbles and falls included, even if the project never comes to fruition, then the potential that such a failure will damage their reputation and future projects can be mitigated. And heck, maybe you will be struck with a miracle and your project will come back to life.