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Message: <blockquote data-quote="Yora" data-source="post: 8815465" data-attributes="member: 6670763">Of course. This whole thread is about informing other creators about the process. It's not to inform the backers of the particular book used as the example (as the term "transparency" might mistakenly imply.)The logic goes as follows:<ul> <li data-xf-list-type="ul">Creating a book and advertising it costs me $10,000.</li> <li data-xf-list-type="ul">Printing and shipping one book to one customer costs me $10.</li> <li data-xf-list-type="ul">I get 1,000 backers with a total funding of $20,000.</li> <li data-xf-list-type="ul">Printing and shipping a book for every backer will take $10,000 of the funds. The other $10,000 of the funds cover my initial investments to create the book. I'm now breaking even.</li> </ul><ul> <li data-xf-list-type="ul">Now if I get another 500 backers who bring in another $10,000 of funding, my printing and shipping costs go up by another $5,000. The remaining $5,000 go straight into my pocket. (Assuming a world with no taxes and cut for KS.)</li> <li data-xf-list-type="ul">I can try luring in more backers by saying "If we reach $30,000 in funding, I throw in an extra that costs me $100 in initial investment cost and $1 per book printed and shipped. That means $10,100 in investment costs and $16,500 for printing and shipping. That's a total cost of $26,600 and I can pocket the remaining $3,700.</li> <li data-xf-list-type="ul">If instead of luring in 500 additional backers with the extras, I actually have the 1,000 original backers pledge $30 each on average, the cost for printing and shipping only increases to $11,000 for a total cost of $21,100 and I can pocket $8,900.</li> </ul></blockquote>

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