Thompson said one obvious advantage of using PayPal is its lower retention rate -- PayPal keeps roughly four percent of Escapement's funds, while Kickstarter's average is closer to eight percent, which played a factor in setting their goal there, he said. Escapement is selling their game for $10; if it were sold for $5 or less, Kickstarter would have been the cheaper option.
Thompson didn't anticipate one, more existential, problem with using Kickstarter -- having to explain what Kickstarter was
to potential donors.
"Most people have never heard of it, and it can add an awkward extra step when pitching the game to people face-to-face," he said. "PayPal is much more widely known, and shouldn't require any explanation because the donation is done through your own website."
Kickstarter was our first serious attempt at fundraising, and even though it wasn't 'successful' It still got us far more attention than we probably could have generated on our own.
Some people associate PayPal with scams, Thompson said, and some donors felt more comfortable sharing their credit-card information with Kickstarter, which looks more professional than PayPal.
"I don't expect to get nearly as much support through PayPal, but if needed I could always run another Kickstarter to make up the difference. There is nothing preventing you from resubmitting a project after it fails," Thompson said.
"Kickstarter was our first serious attempt at fundraising, and even though it wasn't 'successful' It still got us far more attention than we probably could have generated on our own. They have a huge user base and just being on there increased our website traffic significantly. You really don't have much to lose, but it does have its problems," Thompson said. "My advice is if you are offering your game for less than $10 or are only trying to raise a few hundred to a couple thousand dollars, Kickstarter is the way to go."
Escapement is fundraising through PayPal
now, using the same incentives from Kickstarter to motivate donors, directly through their website
. Plans to release In the Dark
have been slowed down, but not blinked out completely.