Kickfurther: My Current Results

A few weeks ago, I posted a bunch of statistics about the Kickfurther platform as a whole.  Someone on Kickfurther's subreddit asked how I was doing.  This post is an attempt to answer that question.

Total Offers

While Kickfurther  has funded about 360 offers (I'm not going to count them again, but I know there have been some in the last two weeks), I have invested in 105 of them.

Cancelled Offers

About 6% of the offers have been cancelled and collection procedures of one sort or another instituted.  11 of mine have either been cancelled, or I don't think there is any hope for them, so my stats are worse than average in that regard. I have seven more offers that are substantially behind on their payments but which I think have a good chance of paying eventually.

New Offers

I have eighteen offers which have not paid anything because payments aren't due yet. Kickfurther has about 100 offers that haven't entered payback stage yet.  That means my portfolio is weighted toward older offers.  There are two reasons for this:

• I've withdrawn about $550
• Kickfurther has moved to a "pack" system which generally means I invest more than my previous $50 standard in each offer.

My Returns

If you add up my profits on completed offers (while Kickfurther considers part of each payment to be profit, I don't consider it a profit until I've gotten back more than I put in), and subract what I've lost or anticipate losing on cancelled or bad offers, the total is -$124.66. Yes, my aproximately $3,000 investment, most of it initally invested last summer, has lost money--at least before you add in the refunds Kickfurther has issued.  My refunds total $173.13 so as of this moment, I have gained 48.47, minus my $8.30 in withdrawal fees.

A Little Hope

The merchandise has been repossessed on two of my failed offers.  Kickfurther said they'd sold some of the Mulberry Silk Comforters and were in the process of figuring out how to divide the money, but they didn't say how much money they had.  Still, it should mean a bit more money in my pocket.  Also they have the Baboon Bamboo drawer trays.  They are trying to sell them in a variety of places, including Amazon.  You can get one here.

The Risks of Kickfurther

Any investment has risks, and a new investment platform is likely to have more risks that something that is established.  The trick to any form of investing is to figure out what the risks are and how you can mitigate them, and to make sure the possible rewards make up for the risks.  When I started with Kickfurther, I saw the risk as being that the merchandise would not sell.  If figured that most merchants would manage to sell some of the products; and so few if any offers would be total losses. I was mistaken.  While Baboon Bamboo and Mulberry Silk Comforters have worked that way--neither was able to sell all the merchandise and both promptly turned the unsold product over to Kickfurther for liquidation, most of my other failed offers have paid very little and none have easily returned the merchandise to Kickfurther.  

Clearly, at least at this point, Kickfurther is for money you can afford to lose.  Kickfurther is a work-in-progress; they are in the process of refining their legal documentation of these offers. They say they are refining the vetting process to get stronger companies involved.  They are strengthening the link between sales and payback.  Hopefully those things work to eliminate some of the fraudulent deals and make it easier to recover something on deals that go bad.  

My Plans

My plans are to withdraw funds from Kickfurther unless the rates go up or the defaults go down.  According to my count, about 1/6 of the offers go bad.  If you assume that failed offers end up being a 100% loss, and if you assume investors want at least  a 7% return on their money annually, then offers that pay need to average about 2% per month, and Kickfurther's rates now aren't that high.  If you assume a 50% return of investment on bad offers, you'd need about 1.5% per month on the good offers.  This means that at the current default rates, a six month Kickfurther offer would have to pay between 9 and 12%. Most don't, and those that do fill in seconds.  Unless the rates go up or the defaults go down, this is not a good investment.  

Kickfurther Merchant of the Week: Wild Mantle

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Today I'd like to welcome Avi Loren Fox to Racing Towards Retirement.  Avi is the founder of Wild Mantle, which got some financing from Kickfurther.  As my regular readers know, Kickfurther allows ordinary investors to finance inventory for businesses and earn a profit for doing so.  

Q:  Tell me a little about yourself--where are you from, where did you go to school and what did you expect to be doing at this point in your life?

A:  I was born and raised in Narberth, Pennsylvania, a small town just outside of Philadlephia on the Main Line. I was homeschooled from second to eighth grade, giving me an early dose of what it's like to be independent and have agency over my path in life. I then attended Lower Merion High School and went on to graduate from the Honor's Program at Temple University. Growing up, when I pictured my life, I don't remember picturing the "career" aspect of my life. Whenever I tried, I got a total blank. I realized in high school that perhaps the job I would have wasn't invented yet. In hindsight, this turned out to be true as I went on to start my own company and create a job for myself. But when I was younger visualizing my future and where I expected to be at this point (I turn 30 in October), I remember thinking more about the lifestyle I wanted to have and also what kind of woman I wanted to be. I had a lot of strong female role models growing up and I sort of took my favorite virtues and characteristics from each and decided that that was the woman I wanted to be. Although I'm a work in progress like anyone else, I very much am living into this woman that I visualized years ago. 

Q:  Give us a short conception and birth story about Wild Mantle

A few years ago, I made a hooded-scarf out of some beloved old cashmere and wool sweaters. It felt cozy and warm, and when I put it on, I felt a quiet sense of comfort and courage. When I wore it out into the world, people noticed, and they’d ask “What is that? I want one!” I heard the same thing from each person who tried it on: “it feels like a hug" and “I feel like a warrior.” I decided to call it the MANTLE, and before I knew it, I was making them for lots of other people. You see, the word MANTLE not only means a loose fitting hood or cloak, it also means your role or responsibility in the world. I decided I would design all my mantles to deliver a hug of coziness and courage. And in turn, the MANTLE would be an invitation to think about what mantles one carries and how they can step into more of an empowered role in their world. 

After demand exceeded my capacity to make the mantles in my hometown, I launched a Kickstarter campaign and raised nearly $40,000 to produce our flagship Alpaca Wild Mantle at a B-Corporation artisan knitting mill frozen in time in the Colorado Rockies. This past May, I launched a second Kickstarter and raised nearly $50,000 to produce our premier Summer Collection. Now, we are growing a community of women around the world who can relate to this idea of "taking up your mantle" and want to come together with other women over topics such as sustainability, empowerment and adventure. I host events for these women in the Philadelphia suburbs, and I'm excited to grow this in the future as we get bigger. 

Q:  Which of your products is your favorite, and why?

The Charcoal Alpaca is my favorite. It's the first color of alpaca we made during our first Kickstarter campaign. We are actually currently sold out because it is so popular (don't worry, we're making more for this fall and you can currently reserve yours via pre-order on our website!) and I love how it has become such a classic amongst our other newer styles. It's the one I wear pretty much every day in the winter; inside with the hood flipped down as a cowl and then outside with the hood up to help maintain my core warmth. 

Q:  As a woman entrepreneur do you believe you have run into any problems that your male counterparts have not?  Do you believe being a woman has given you a leg up on the guys in any way?  

We live in a time where women stepping up in the work force is not only encouraged, but also highlighted and celebrated. My parents raised me to believe I could be anything I wanted to be. For example, when I was a kid, I remember thinking about running for president when I grew up. It never occurred to me that I couldn't do it because I was a woman, it was more a thought like "I'm probably not going to run for president someday because being in the political system isn't the game I want to play....but if I did...what if I won? Wouldn't that be cool?" Entrepreneurship is the game I want to play, and I haven't, to date, run into any problems (that I know of) that my male counterparts have not. I have received support from organizations specifically targeted at women, and I do feel very supported by my community because I am a woman entrepreneur. 

Q:   I notice that you have done a lot of crowdfunding of your business via Kickstarter and Kickfurther.  Is there any reason  you have chosen this type of funding?

A:  Kickstarter was an obvious and fun way for me to get started, as it enabled me to test my idea among the community and only manufacture orders that were previously placed. It is an amazing way for a new entrepreneur to test their proof of concept, build a customer base, and also get through the inevitable first round of learning experiences that come with launching a new product. We've successfully completed two Kickstarters and one Kickfurther. I also received a loan from Kiva and the Tory Burch Foundation, both of which are paid back. 

Q:  Where did you first hear of Kickfurther, and why did you decide to use them?

A:  After I did my first Kickstarter successfully, I started getting emails from companies eager to help with the next phase of funding. Kickfurther caught my eye, and I decided to use them because the immediacy of the raise was advantageous to my timeline and I liked the idea that backers might turn into future customers, as they did on Kickstarter. 

Q:  You successfully finished your first Kickfurther campaign a month early, which I'm sure made your investors happy.  Are you planning to use Kickfuther again anytime soon?  Why or why not?

A:  Yes, I hope this made them happy! I am not planning on using Kickfurther again. While I really like the team and concept, the interest rates are really high and I'm currently switching to a line of credit. Additionally, I didn't find that the backers on Kickfurther translated into customers or helped at all with sales (as was the case on Kickstarter) so from a purely monetary standpoint Kickfurther no longer makes sense for me. 

Q:  Would you recommend Kickfurther to other business owners?  Why or why not?

A:  I would recommend Kickfurther to a business if their needs matched what the platform delivered. I've referred a few friends to date, actually. 

Q:  Have you tried Kickfurther from the investor side?  Why or why not?  Would you recommend it to friends or family who have money to invest?

A:  I am an investor on Kickfurther. When I decided to launch my campaign, I wanted to know what it was like to both sides. I would recommend it to friends and family with caution. Most of my investments have gone really well, but one person completely dropped off the planet and I'm still waiting to see how that will work out. It is probably the case that the money I'll make in the investments that went well will equal the money I will lose on the one that went bad. So in the end, although a good learning experience, it will probably not be a financially lucrative experience. 

Q:   Would you like to offer a giveaway? 

A:  Sure, how about we do a $20 gift certificate to my website?

I'd like to thank Avi for joining us today and for offering a $20 gift certificate.  You can visit Wild Mantle at their website, They are also on Instagram, facebook, Twitter, and Pinterest.  

 If you want to know more about Kickfurther, click the "Kickfurther" label under this post.  I've written extensively about Kickfurther and my experiences with it.  If you would like to invest with Kickfurther, use this link and you get $5.00 off your first investment.  If you have a business which needs money to purchase inventory, if you use my link, I get referral credit, and bloggers have to eat too!

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Keeping Your Bookshelf (Real or Virtual) Full Without Going Broke

Do you remember your first favorite book that you were able to read all by yourself?  Mine was "Ann Likes Red" but I quickly moved on to better and bigger books.  Reading has been my favorite pastime for my entire life.  Luckily, as hobbies go, reading can be relatively inexpensive.  Below are some ways readers can save:

Use Your Library

Public libraries today are far more diverse than they once were, so before saying "the library wouldn't carry that kind of book", check.  No, they won't carry extremely graphic erotica or pornography, but they will carry books featuring people of color, books from various religious traditions and books about people with varying sexual indentities and expressions.  Libraries in larger cities will often have a better selection than ones in small towns, but even in small towns, inter-library loan is often available.  The main problem with libraries is that if you want to read the latest best-seller you may be on a long waiting list.  Don't forget, your library probably offers more than hard copies of books.  This article talks about modern public libraries.  

Shop Garage Sales

Especially if you like romance novels, garage sales can be a great way to pick up books inexpensively.  Lots of people buy books and eventually most people get tired of keeping them.  

Your Library Used Book Sale

Many libraries have yearly (or more often) sales where they sell their discards along with donated books they do not want to add to their collection.  This can be a great source for books that were popular a year or two ago, since the library no longer needs all its copies of the book, and they probabaly have donated copies too.  

Used Book Stores

Many used bookstores allow you to trade your old books for "new" old books.  Amazon allows you to sell your books through them, but you have to package and ship them.  Used book stores are a way to get rid of books you no longer want and a way to get books you do want.

Free E-Books

Most of the classics are available free from Amazon as e-book downloads.  Amazon also has thousands of other free e-books.  Some are the first in a self-published series, clearly designed to give you enough of a taste so that you want to buy the rest of  (or at least next book in) the series.  Sometimes established authors will offer a book from their backlist free not long before a new book is released.  While there is a lot of trash to wade through, you can probably find something to pass a pleasant afternoon if you try.  This list will give you the current 100 best selling free books on Amazon. When I checked the list it included a book by Bella Andre and one by Kristen Heiztmann.  G.K. Chesterton also had one on the list.  The rest of it was dominated by what appears to be self-published romance novels but it can't hurt to take a look.  There are several services that send you daily newsletters about Amazon freebies.  Robin Reads is one of them. 

Book Swapping Services

Bookmooch and Paperback Swap are two of the most popular swapping services.  Once you register on the site, you list books you are willing to give away.  Members are able to search the inventory for books they want, or they can create wishlists.  When someone wants a book you own, you mail (and pay postage) the book to them, and get credit in return.  You use that credit to order books other people offer, and they pay to mail them to you.  I find these services to be a good place to get assigned summer reading books--"everyone" around here wants a copy so the library runs out of copies; yet the books are popular enough that there are lots of used ones floating around other places.  The cost to mail one book is a little over $2.00, so you can compare that price to buying used on Amazon or other places.  

Become a Book Blogger

If you like to read and to write, you may want to consider becoming a book blogger.  You can set up a free blog on Blogger or Wordpress.com and start to review books you read, whatever the source.  Participate in a few weekly link-ups like Mailbox Monday or Its Monday, What Are You Reading and people will discover you.  Make sure your blog has your contact information and eventually, review requests will come.  My book blog is called This That and the Other Thing.  

You can also sign up with book review groups.  Here are a few:

• Blogging for Books is a Penguin Random House service.  Bloggers can request books in a variety of genres and once they post a review, they can request another.
• Booklook Bloggers is for Harper Collins Christian books.  They require that bloggers have at least 30 subscribers and they provide free hard copies or ebooks for review.
• Litfuse organizes blog tours for Christan books.  Bloggers who particpate in a tour receive a free book.  In return, they publish the tour materal and, usually, their own review.
• iRead Book Tours is another company that organizes book tours.
• Bostick Communication  is used a lot by self-published authors.  They send out emails about books that are availble for review and bloggers can request copies.  

Besides those services which offer a rather limited number of books, there are two large sources of e-galleys, NetGalley and Edelweiss.  Most of these are released prior to the publication date of the book, and before the last editing has been done.  Nevertheless, differences between these books and the final copies are relatively insignificant, and you would probably only notice it if you did a page-by-page comparision of the two (I did this with a book relevant to one of my cases at work and a few things were re-arranged but the content was pretty much the same). 

With both NetGalley and Edelweiss, bloggers register for the service and complete a profile.  They are then able to browse the available books (right now NetGalley has 5266 books available and Edelweiss has 5143). While a few are auto-approved, most of the books are set so that you have to request to review them.  The publisher reviews your application and decides whether to approve you, or not.  I'm hardly a big-time book blogger but I find that the overwhelming majority of my requests are approved.  

While bloggers are not required to review books from these services, failing to review many of the books you request may result in few approvals for books you want to read.  

The final way book bloggers can get free review copies is through publicists or authors.  If you have contact information available on your blog, the publicists may find you.  If you participate in the book haul link-ups and you see a blogger getting books you would like, it is ok to ask who sent them--but some bloggers are tight-lipped about their sources.  On the other hand, the book haul link-ups (Mailbox Monday, It's Monday, What Are You Reading, Stacking the Shelves etc.) can give you leads on other ways to obtain review copies.  

One terrific thing about reading is that it doesn't have to cost a fortune.  What are some ways  you reduce the costs of your favorite pastimes?