What Kickstarter is is evident in the numerous projects that were only financed and made possible thanks to the platform. This is where crowdfunding happens.
What Kickstarter is: The Basics
Kickstarter is one of the best-known crowdfunding platforms on the Internet.
- Crowdfunding, translated as “crowd financing,” is a method in which many people – often hundreds or thousands – donate small amounts of money to fund a project.
- Kickstarter was founded in the USA in 2009 and has since enabled millions of creative projects around the world.
- The platform is particularly popular with creatives who want to realize projects in the fields of art, music, film, technology, games and design. Whether it is developing a new video game, producing a film or creating an innovative product, these ideas can receive the financial support they need on Kickstarter.
- Kickstarter itself has little to do with the ideas. Kickstarter.com simply provides the platform. It is a kind of social network.
- In the past, many great ideas have been financed through Kickstarter. These include the Pebble smartwatch and the German film “Stromberg”.
How crowdfunding works on Kickstarter
For example, if you want to produce a film, program an app or realize another idea and still need the right cash, Kickstarter is the right place for you.
- A key feature of Kickstarter is the “All or nothing” principleThis means that a project will only be funded if the specified target amount is reached within a specified period of time.
- If the funding target is not reached, all supporters will receive your money backand the project will not be realized. This model is intended to ensure that the projects enough resources to be truly successfully implemented.
- Starting a project on Kickstarter is possible in just a few steps. First define the details of the project: Target amount, duration of the campaign, rewards for supporters and a detailed description of the project. It is important to gain the trust of potential supporters by presenting the project transparently and showing that it is feasible.
- If people like your idea, they can self-selected amounts to you. In the film Stromberg, a payment of a certain amount was rewarded with a supporting role. In addition, all supporters received their money back as well as the percentage of profit.
- However, such a model is rather unusual. Participants often pay a little more money for the final product, but in doing so ensure that the project is realized. However, a certain bonus for supporters is always a useful incentive.
- During the campaign you can post updates regularly and communicate with supportersThis keeps the community informed and increases the chance of reaching the target amount. After the end of a successful campaign, the money raised is paid to you and you are then obliged to implement the project as promised and deliver the rewards to the backers.
- Kickstarter as a platform and Stripe as a payment processor generate a total of around 10 percent of revenue for yourself. For example, if you collect $10,000, if you are successful you will only have $9,000 left for you.
- By the way, besides Kickstarter.com, there are other crowdfunding platforms where you can successfully realize your crowdfunding projects with the right knowledge.
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- The most successful crowdfunding projects of all time
- Start your own Kickstarter campaign – a guide
- Paying with Paypal on Kickstarter – is that possible?