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Why doesn't Kickstarter follow the original Groupon (thepoint.com) model, where if it doesn't meet its goal, nobody is charged?


That is true for deals that don't get funded. This is talking about the case where the deal is funded but the service is never delivered. Like having a Groupon for a company that went out of business.


Nobody is charged if the KS project does not meet its funding goal.

This article is about what happens when a project is funded, but fails to deliver. At that point the funders have lost their money.


That's exactly what happens. You commit to backing a project, but your card is only charged once the project meets it's finding goal.


Ahh, see that's what I thought, but this article made me second-guess it.


Because then where is the risk? It would be entirely with Kickstarter, since they would have to give their own money to the creators before taking any money from customers.


Because Kickstarter wouldn't make as much money ...




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