The Kickstarter-kicking has begun: don’t let crowd-funding of pigs-in-pokes ruin the promise of micropayments

Looking for an image of a pig in a poke led to this preliminary sketch by Victor Juhasz, on his site showing visitors how he makes decisions about directing his delectable line. http://www.drawger.com

This post-Gutenberg blog typically takes the giraffe-necked – that is, very long – view. It hardly expects instant gratification for recommendations about the future of publishing, or suggestions for its evolution. That made it both unsurprising and shocking to find the gist of these cautions about micropayments and crowd-funding prove justified in less than a month:

  • Could crowd-funding art with cash advances amassed from micropayments be less helpful than getting artists decent compensation from micropayments collected for finished work?
  • … [Artists] transferring the balance of cash-gathering sweat to work that has yet to be done is surely a bad idea …
  • There is some danger that disappointment with microfunding could lead to disenchantment with micropayments of every kind. That could delay the shift from conventional ways of selling art (through publishers, galleries and so on) to the liberating alternatives that new technological inventions have begun to bring us.

Only six months ago, Gizmodo, one of the most influential technology-watching sites on the web – it counted Steve Jobs among its avid readers – was raving about the prospects of online fundraising for new projects of every sort, from new-fangled gizmos like iPad stands to artistic schemes, inventions, and gigs. Its enthusiasm was concentrated on Kickstarter, the most prominent go-between for creators and the random collections of small-scale investors contributing to ‘crowd-funding’ creative toil:

10 November 2011

Kickstarter is full of awful, ill conceived, downright dumb ideas. So is the internet. So is the universe. But it’s also festooned with crazy-good thinking, ingenuity, and imagination. It’s fun and unfettered.

[…]

Kickstarter is the only viable place any average Jonny Internet can take a decent idea and stand a chance of making it real. No venture capital vampires, no hype …

The recommendations of old print media usually follow in Gizmodo’s wake, but in January, The Economist appeared to boast about leading the applause:

This newspaper has written about Kickstarter several times in the past two years, including an overview of how crowdfunding works after the firm had raised about $15m in its first year. At the time, it was unclear whether such crowdfunding (also called micropatronage) was a passing fad or a rising alternative to conventional starter financing for creative media.

Kickstarter’s performance in 2011 bolsters the latter case.

Though that ancient cosmopolite’s bible did mention the odd disappointment for both fund-seekers and micro-patrons, it has yet to regret its championship of crowd-funding. But for Gizmodo – far more closely in touch with thinking among the twentysomethings who dominate online innovation – it was time for sackcloth and ashes a fortnight ago. In a piece headed, ‘We’re done with Kickstarter,’ Gizmodo explained:

29 March 2012

We look at hundreds of products every week. Sometimes thousands. At first all of us were pretty stoked about Kickstarter, because it seemed like a genuine font of unfettered innovation—the hive mind coming up with products that we truly needed but had never even thought of before. And maybe it was. But it’s not anymore. It’s a sea of bad videos, bad renderings, and poorly made prototypes. Some might be good. Many are poorly made. And some are downright fraudulent, taking peoples’ money without delivering the promised rewards. This has happened to me.

[…]

Hopefully Kickstarter will evolve into something a little more trustworthy that we can feel comfortable sharing with you. Because in this game, a source you can’t trust is a source you can’t use.

In comments on its lamentation, readers railed at Gizmodo in posts like this one from @anamnet:

Giz introduced me to Kickstarter and now they are the first who’re sick of it. Makes them sound like a teenage girl who’s getting over a fad.

Actually, Gizmodo deserves to be congratulated for its forthright mea culpa. Next, it would be wonderful to find on that site a piece weighing all the reasons given here for preferring post-production micropayments – especially for artists and writers, starting with this one:

Seeking and accepting money in advance can constrain creativity. Anticipating prospective backers’ anxiety about squandering even small sums on inconsequential, pig-in-a-poke projects, artists are puffing up their planned works and divulging details of visions that have yet to meet the challenge of execution. How much room for creative manoeuvring and play – or simply changing their minds – will they have when, to reward their micro-investors’ trust, they feel that they must treat proposals as promises?

… Gizmodo’s helpful admission about reading the tea leaves incorrectly on crowd-funding is not just admirable in itself but made a salutary contrast, in my week’s reading, with an older publication’s delusion that it  comprehends what readers want in post-Gutenberg publishing. An extract from a mesmerising report in the latest Private Eye:

‘Last weekend we did something extraordinary.’ That was the verdict of Guardian editor Alan Rusbridger on his ‘Open Weekend’ … at which readers descended on the paper’s offices to gawp at [Guardian journalists].

Never mind that the newspaper is losing money galore. The bring-your-readers-to-work idea represented the way forward for ‘Open Journalism’ – apparently something to do with internet clouds, killer apps, crowd-sourcing and trouser-presses.

Many hacks in the building looked on the jamboree with jaundiced eyes […] but were assured that this is the way forward for Journalism 4.0 as the Guardian set off on its exciting transformation from newspaper to online events organiser.

Alas! The ‘new paradigm’ seems no more profitable than the old one. After totting up the figures, Grauniad beancounters have discovered that the self-styled ‘festival of readers and reasonableness’ – attended by 5,000 people paying between  £60 and £70 – made a net loss of £150,000.

Dear Grauniad, your ‘Open Weekend’ is surely the daftest idea anyone has heard for reshaping publishing. No, your sensible readers do not wish to crowd-fund your survival. Nor do they want to pay to peer at your writers, or throw peanuts through the bars of their cages. How about showing some glimmer of grasping what this post-Gutenberg revolution is really all about? See:

Wanted: a brave newspaper for an experiment in which readers become stakeholders … & … Why a keiretsu-cooperative is a gentle transition for old media — and how about saying, ‘an exaltation of bloggers’?

Micro-funded advances for artists is good news: micropayments for finished work — like paying for mobile apps — would be better

The tall droid was originally a female bimbo. Photograph: http://www.zazzle.com/starwarselection

Creativity needs flexibility, as I was reminded through the demise of someone who had a hand in creating robots who inhabit a patch of my dreams.

R2D2 is the fictional character of the last hundred years I would choose to give the run of my house – in an eye-blink – although I would settle for his Star Wars comrade, C3PO.  A domestic cleaner-robot with charm is my only hope of indoor snow – of experiencing inside my house the supreme happiness of watching frozen H2O blanket everything messy and unsightly in a landscape and turn it into a serene Japanese garden. Yes, reader, untidiness is one of my besetting sins. I like the idea of being pandered to by a droid whose raison d’être is serving humans, and it hardly matters that Threepio’s responsibilities in the George Lucas series are protocol, etiquette and translation (from ‘six million forms of communication’ – really, just look up his wiki). He is programmable. He is sophisticated. Being so much more intelligent, he would sail over the hurdle before which I always collapse – I mean, work out how to de-clutter my existence without hobbling my attempts to do the few things that justify it. He would strap his frilly apron in place and get on with it, expecting me to do no more than keep his antivirus software up-to-date.

But Threepio might never have found his way onto cinema screens. If not for a sort of creative miscarriage, he would not have been born, and this relates to a question I have been weighing since last week’s post about micropayments. Could crowd-funding art with cash advances amassed from micropayments be less helpful than getting artists decent compensation from micropayments collected for finished work?

Let me explain.

You can pay a carpenter an advance on a set of kitchen shelves, agree on a design and choice of wood, and receive more or less what you thought you would. Though the best carpenters are unquestionably artists of a kind, they rarely derail expectations comprehensively – delivering, say, a four-poster bed in pine instead of the birch shelving grid promised for your heirloom pots and pans. Things are rather less predictable in the arts – even in the most extroverted and collaborative branches, like film-making for mass audiences. Capricious flitting about is of the essence of imagining.

C3PO, you see, was originally a woman – not just an anyone with breasts, but ‘a tall, elegant, expression-less Art Decoesque golden female robot’. I made this discovery a few days ago in a New York Times obituary for Ralph McQuarrie,  an artist who served as a sort of medium for directors of science-fiction and fantasy films. He rendered in gouache detailed externalisations, through  interpretation, of their vague imaginative stirrings about characters – a skill he acquired as a technical illustrator and from some years spent at an animation company. The obituary records that his help was crucial to the success of George Lucas’s quest for the financial backing he needed to make Star Wars — to

… persuading the board of directors of 20th Century Fox to finance the first film in the series, and to distribute the others …

“These paintings helped George get the movie approved by Fox because it gave them something to visualize, instead of just a script,” said Steve Sansweet, the author of 16 “Star Wars” books and until recently the director of fan relations for Lucasfilm.

Now, I reckon that those producers made no fuss about a sex-change operation on what is, for some of us, one of the most endearing characters in the series (not Luke Skywalker, Princess Leia or Darth Vader, who are merely archetypes of the hero, heroine and villain as old as mankind). Hollywood has always worked the way small towns do – like publishing does in London or New York. Those producers would have known quite a lot about George Lucas before they invested in him. I could be mistaken, but am guessing that clubbiness would have given him the creative license of a friend who was once so well-connected in literary New York that her publisher made no protest when she used the advance paid for a non-fiction book about wild animals giving birth to submit, instead, a romantic novel involving safaris and social justice.

A cautiously optimistic report last Saturday by Patricia Cohen, an author and arts & culture editor at the NYT, noted surging interest in online backing for artistic projects by small-scale investors being given credit for betting on and supporting talent. Many – if not most of these actual or prospective micro-investors — do not seem to know the artists they are helping.

Some consequences and implications of this particular route to aiding struggling artists are bothering me:

● Seeking and accepting money in advance can constrain creativity. Anticipating prospective backers’ anxiety about squandering even small sums on inconsequential, pig-in-a-poke projects, artists are puffing up their planned works and divulging details of visions that have yet to meet the challenge of execution. How much room for creative manoeuvring and play – or simply changing their minds – will they have when, to reward their micro-investors’ trust, they feel that they must treat proposals as promises?

● Whereas George Lucas had Ralph McQuarrie toiling over the supply of his mock-ups, artists are being diverted from their own work to create elaborate sales pitches – like the multi-media presentations of a bold new British book-funding and publishing site, Unbound. (See, for instance, this lively appeal by five women historians for their planned collaboration on Our Reigning Queens.)

● The clarity and precision required to design and deliver an investment pitch do not fit the fuzzy, dreamlike state that neuroscience is revealing to be ideal for creativity – as Jonah Lehrer has shown in his new book on the subject.  Yes, the fund-raising part of a creator’s life can be separated more or less from doing the actual work, but there is arguably too much inimical to the right frame of mind claiming our attention already — even for people keeping their distance from social media. As Lehrer puts it, ‘… we live in an age that worships focus—we are always forcing ourselves to concentrate, chugging caffeine’, even though this bias of the zeitgeist ‘can inhibit the imagination’.

● People are confusing micro-advances for art and literature with micropayments for  work that has been completed independently and put up for sale – like the small sums that authors of short e-books or long e-essays have begun to ask for, both independently and through conventional publishers.

Of course payments ‘upfront’ and for finished work are not mutually exclusive. But transferring the balance of cash-gathering sweat to work that has yet to be done is surely a bad idea.

There is some danger that disappointment with microfunding could lead to disenchantment with micropayments of every kind. That could delay the shift from conventional ways of selling art (through publishers, galleries and so on) to the liberating alternatives that new technological inventions have begun to bring us.

I am thinking once again of Threepio’s trans-gender leap. What if one of George Lucas’s backers for a Star Wars script financed by micro-investors had been an ardent feminist who contributed $500 for the pleasure of introducing audiences to a female robot in a key supporting role – and then had to confront  the horror — oh, the horror!  — of a gender re-programming?

… I say, let’s focus on using micropayments to make it easy for painters, film-makers, sculptors, writers, musicians and their kin to be paid for their ‘products’ — as easy as for developers of software apps for our portable electrovices. ( Sorry, that was meant to read, electronic devices.)

The market for apps has been booming. Why should someone who can afford to pay €3.47 — or its equivalent — for an electronic game app not part as readily with the same amount for a short story by an up-and-coming Gabriel Garcia Marquez, and be drawn inexorably, blissfully and unforgettably into an opening like this one, for GGM’s ‘Maria Dos Prazeres’:

The man from the undertaking establishment was so punctual that Maria dos Prazeres was still in her bathrobe, with her hair in curlers, and she just had time to put a red rose behind her ear to keep from looking as unattractive as she felt …

Do we need a campaign for micropayments to support ‘lyric perception’?

Photograph by MIL22

This helpless thing, lyric perception, is an authentic response to the world’s impossible contradictions which seem to resolve themselves, finally, as beauty. In fact, I believe that lyricism represents a form of courage, for it is the only response as thoroughly vulnerable as the jeopardized world itself is.

Patricia Hampl,  Spillville,  1987

'1 2 3 4 QUARTETTO b' MIL22

As more writers and artists without formal qualifications but with undeniable gifts find audiences for their work on the net, will micropayments finally take off?

By micropayments I mean fractions of €10 or $10 notes – or their equivalent – paid through a transactional service like Kachingle or Flattr to look at an image or video, read a text, or listen to a musical performance or composition. These are payments so minuscule that they barely register with our pocketbooks, but do earn their creators some measurable income in the aggregate.

Popular writers and artists would still far out-earn rivals who cater to more specialised tastes, but some of those appreciated by smaller audiences might be able to retain more of the earnings that they must give away, at present, to middlemen they cannot really afford to pay at all – intermediaries who rarely have the time or inclination to spend much time promoting their work.

So far, so-called Millennials – the generation in their twenties and early thirties now shaping our experience of the net — have shown little enthusiasm for micro-transactions. Their complaints about feeling cheated by corporate middlemen in the music business, when obliged to pay for the pleasure of  ‘sharing’ a song, are not completely incomprehensible.

But why are they so unenthusiastic about experimenting with micropayments — direct transactions between buyers and sellers?

Many ardent campaigners for the so-called ‘Freemium’ economy willingly pay small ransoms for the latest gadgets – even when these are only minor improvements or enhancements of last year’s versions, and are designed to fatten the profits of the hated capitalists. Few of them learn to cook simple meals from scratch: they are happy to pay huge mark-ups for bland microwaveable fare cooked and packaged by giant corporations, or to patronise  fast-food chains.

Why is it seemingly only art that turns them into Scrooges?

If more Millennials come to see themselves as artists, writers and musicians in years to come – using the democratic new publishing tools – will they become less unsympathetic?

Now, net-shunning Private Eye outranks even The Economist as Britain’s most popular current affairs magazine

Ian Hislop, who has been Private Eye's editor since 1986

Private Eye cover, 12 April 2008

All hail Private Eye, whose circulation grew by more than ten per cent last year, when so many famous names linked to old media were — are — howling about print meeting its doom.

All hail Private Eye, not least because, as far as I can tell, no one in mainstream media has, on this occasion. There have been no laurel wreaths from its rivals, no adulatory editorials or delving into the reasons for its astonishing success since the Audit Bureau of Circulations released the latest figures in mid-February – although the media section of one broadsheet did carry brief news items on the subject.

All hail Private Eye because, in spite of its (affectionate) marginalisation as a ‘satirical magazine,’ it looks as if it could be becoming Britons’ most reliable source of printed information about what is happening in the UK — or close to that. The trade publication Media Week anointed it ‘the leading news and current affairs magazine by issue in the country, nearly 18,000 copies ahead of The Economist,’ with the minor qualifier that ‘its rival title is published weekly.’ (That qualifier is probably meaningless, since I reckon that most subscribers would be delighted to buy it once a week.)

There is no reason to disagree with the Eye’s managing director, Sheila Molnar, who explained two years ago that ‘People always turn to us in times of trouble because they trust us. With the MPs’ expenses row and the banks, people trust Private Eye and what they read in it.’

Though the Eye has no digital edition and is virtually ignoring the internet, its pages are saturated with the fearless, irreverent, outsider ethos of the web and blogging world – most obvious in its ‘Street of Shame’ column. There, as its editor Ian Hislop told Lord Justice Leveson in January at the official Inquiry into press culture and standards, his writers concentrate on the foibles of the 4th Estate — on

… stories about

journalists misbehaving. It tends to be anything from

making up stories, drunkenness, stealing stories from

each other, printing things that are totally and utterly

untrue, promoting each other for reasons that aren’t

terribly ethical, sucking up to their proprietors, being

told what to do by their proprietors, running stories

because their proprietors insist on it, marshalling the

facts towards a conclusion that they’ve already decided

on.

Private Eye’s robustness confirms these suspicions at post-Gutenberg about the secrets of media thriving in the transition to the 5th Estate – in its case, with only token contributions to its operating budget from advertisers, which is why it cannot afford to give away its contents on the net:

It is strictly non-partisan

The political left, right and centre are all flayed with equal relish. As noted here last month, highly-placed apologists for a worrying shift in 4th Estate practices feel that there is nothing wrong with abandoning political neutrality – but a reader poll on the site of The Economist shows that this is, overwhelmingly, the very opposite of what the public wants.

It is – without fear or favour – supplying the uncomfortable, true facts indispensable to government by the people, or what we call democracy

It might just as well be called The Whistleblower Wire. It tackles malfeasance as no other publication does, across a staggering breadth of public life. A small sample: ‘Called to Ordure’ (parliamentary proceedings); ‘Medicine Balls’ (mainly, the National Health Service); ‘Signal Failures’ (the railway network); ‘The Agri Brigade’ (farming and food policies); ‘Rotten Boroughs’ (local government); ‘Music and Musicians’; ‘Keeping the Lights On’ (the law and lawyers); ‘Books and Bookmen’ (cronyism in book publishing).

It relies on its readers for its peerless investigative reporting

… and did so long before the internet came along with its promise of building reader ‘communities’.  As Ian Hislop said in his Leveson evidence, his magazine

operates as a sort of club where people not only buy the

magazine, they write a lot of it, which is the principle

we work on. Broadly, the sources come from people

inside their professions, so the medical column, the

column about energy, the pieces in the back, a lot of

those are given by people directly involved.

None of its content is influenced by advertising

As it does not run on the advertising-centred business model for publishing — unlike virtually every other great name in print journalism — it has no need to court or bow to corporate panjandrums and satraps, and its articles are not distorted by their manipulations.

Its success underlines the undesirability of concentrated media ownership, as it has the extreme editorial independence only possible when a publication is not beholden to any single media mogul or proprietor trading favours, buying influence, or vulnerable to manipulation or blackmail

In some ways, Private Eye can be seen as an early prototype of the ‘keiretsu-cooperative,’ a model for post-Gutenberg publishing  in which sites are co-owned with clubs of reader-contributors. Its Wikipedia entry lists no fewer than seventeen shareholders, and says that the magazine has never disclosed exactly who has contributed what to its capitalization and upkeep.

What is an instance of this magazine’s uniqueness and indispensability? The other day, when all the broadsheets reported that the education secretary, Michael Gove, had condemned the Leveson Inquiry for its ‘chilling effect’ on the media, they failed to explain why he was complaining so bitterly about an investigation initiated by his own leader, David Cameron, and in the same tirade, lauding Rupert’s Murdoch’s launch of the Sun on Sunday. They also offered not a single example of what noble journalism the Inquiry has supposedly been inhibiting — just as he failed to do.

Mystification over all that was beginning to make me feel mildly unhinged when the latest Eye arrived. There I discovered that the education secretary is married to  — well, well, well, a journalist on the Times. And who owns the Times? Let us say, a certain Australian-born media mogul.

And, returning briefly to the subject of ownership … As diligent use of both inductive and deductive logic has yet to yield incontrovertible proof of his existence, I must reluctantly dismiss as speculation all hints to the effect that Private Eye does in fact have a proprietor — a reclusive individual writing occasionally under the rubric, ‘A Message From Lord Gnome’. The same goes for any suggestion that he is simply too shy or coy to (a) scotch rumours that his life’s ambition is to be more elusive than the putative Higgs boson particle, and (b), admit that he has no help from ghostwriters in recording his sublime meditations, as on the subject of the recent fate of bankers:

[W]here, we must ask, will this witchhunt end? Which other leading figures in the economic life of our country will be next to be hunted down, to be publicly humiliated, as their names are execrated across the land?