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

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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

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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

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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 “​

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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

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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

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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

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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

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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

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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.

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Essay Portion Word Count: 3298

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3
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