How Does Kickstarter Work? (Crowdfunding Platform)

Kickstarter is a popular crowdfunding platform that revolutionized the way creative projects are funded. It provides a space for creators to present their ideas and receive financial support from interested backers. With its unique model, Kickstarter has become the go-to platform for entrepreneurs, artists, designers, and innovators seeking to bring their visions to life.

Key Takeaways:

• Kickstarter is a crowdfunding platform that connects creators with backers.
• Creators set a funding goal and deadline for their projects, and backers pledge money to support them.
• Kickstarter has guidelines that creators must follow, and it focuses on creative projects in various categories.
• The platform operates on an all-or-nothing rule, where creators only receive funds if they reach their funding goal within the set deadline.
• Kickstarter has had a significant impact on entrepreneurship, providing funding opportunities and connecting creators with a global audience.

What Is Kickstarter?

Kickstarter is a crowdfunding platform that brings together creators and backers to support creative projects. Creators use the platform to present their unique ideas, whether it’s a new tech gadget, an art installation, or a game. Backers, on the other hand, have the opportunity to browse through a diverse range of projects and select the ones they want to support financially.

On Kickstarter, creators showcase their projects using a combination of images, text, and videos. This multimedia approach allows them to effectively communicate their vision and capture the interest of potential backers. Backers, in turn, have the chance to explore innovative and exciting ideas, and contribute financially to bring these projects to life. It’s a platform that fosters creativity, collaboration, and community.

One unique aspect of Kickstarter is the rewards system. Creators offer various reward levels based on the amount pledged by backers. These rewards can range from a simple thank you note to exclusive merchandise or even early access to the finished product. The rewards act as incentives for backers to contribute at higher pledge levels, and also help creators establish a connection with their supporters.

Example Project on Kickstarter:

“Our project aims to revolutionize the way we commute in busy cities. Through our innovative electric scooter design, we want to offer a sustainable and convenient solution for urban transportation. With your support, we can bring this eco-friendly alternative to life and make commuting a breeze for everyone.”

With its collaborative approach and emphasis on creativity, Kickstarter has become a hub for innovative projects that may not have found support through traditional funding avenues. It has empowered creators to turn their ideas into reality, while also offering backers the satisfaction of contributing to something meaningful and exciting. Kickstarter is more than just a platform; it’s a community that supports and celebrates innovation.

How to Start a Project on Kickstarter

Starting a project on Kickstarter is an exciting opportunity for creators to bring their ideas to life and receive support from backers. To get started, creators need to follow certain guidelines and set a funding goal for their project. Successful projects on Kickstarter require careful planning and an engaging presentation that captures the attention of potential backers.

Project Guidelines

Kickstarter has specific guidelines that creators must adhere to when starting a project. These guidelines ensure that projects meet certain standards and are suitable for the platform. Creators need to provide a clear and precise description of their project, outlining its purpose, scope, and potential impact. The presentation should be visually appealing and shareable with prospective clients. Additionally, creators should provide a detailed breakdown of the funding goal, explaining how the funds will be used to bring the project to fruition.

Setting a Funding Goal

One of the crucial aspects of starting a project on Kickstarter is setting a funding goal. This goal represents the amount of money the creator aims to raise to bring their project to life. It is important to set a realistic funding goal that covers the costs of production, manufacturing, and any other expenses associated with the project. Creators should carefully consider their project’s scope and budget requirements to determine the appropriate funding goal. It is worth noting that Kickstarter operates on an all-or-nothing basis, meaning that creators only receive the funds if they reach or exceed their funding goal by the set deadline.

Submitting the Project

Once the project idea and funding goal are determined, creators can submit their project for review on Kickstarter. It is important to note that not all projects are approved; only 75% of submitted projects receive approval. Therefore, creators should ensure that their project meets all guidelines and clearly demonstrates its value to potential backers. Once approved, creators can launch their project on Kickstarter and start spreading the word to attract backers.

Starting a project on Kickstarter can be a rewarding experience for creators who are passionate about their ideas. By following the platform’s guidelines and setting a realistic funding goal, creators can increase their chances of successfully funding their project and bringing it to life with the support of backers.

How to Fund a Project on Kickstarter

Once you’ve found a project on Kickstarter that you’re excited about, you can become a backer and contribute to its funding. The process of funding a project on Kickstarter is straightforward and involves a few simple steps.

First, you need to select the project you want to back. Browse through the various projects on the platform and find one that aligns with your interests and passion. Once you’ve found the project, click on it to access more information about the creator, the project details, and the funding goal.

Next, you’ll need to choose a pledge amount. Kickstarter offers different pledge levels, each with its own set of rewards. Consider the amount you’re comfortable contributing and the rewards you want to receive in return. Pledge amounts can vary from as little as a few dollars to thousands of dollars, depending on the project and your budget.

After selecting your pledge amount, you’ll proceed to the payment process. Kickstarter typically uses credit card payments for pledges. However, your card will not be charged immediately. The funds will only be deducted if the project reaches its funding goal by the deadline. This ensures that your money will only be used if the project is successfully funded.

Once the project reaches its funding goal and the deadline passes, the creator will receive the funds. As a backer, you can expect to receive updates from the creator about the project’s progress and the estimated delivery date of your rewards. Keep in mind that the delivery date may vary depending on the complexity of the project, so patience is key.

Overall, funding a project on Kickstarter is a straightforward process that allows you to support creators and their innovative ideas. By becoming a backer, you not only contribute to the project’s success but also have the opportunity to receive exciting rewards that come with your pledge.

Kickstarter Guidelines

Kickstarter has certain guidelines that creators must follow when submitting a project. These guidelines ensure that projects on the platform meet the required standards and align with Kickstarter’s mission of supporting creative endeavors. By adhering to these guidelines, creators can increase their chances of getting their project approved and funded.

Project Rules

When creating a project on Kickstarter, creators must follow certain rules to maintain the integrity of the platform. The all-or-nothing rule is one of the fundamental guidelines, where creators can only receive funds if they reach their funding goal by the set deadline. This rule ensures that backers’ pledges are used efficiently and that projects have a viable chance of success.

Additionally, Kickstarter does not allow fundraising for charities on the platform, as it primarily focuses on supporting creative projects. Offering equity in exchange for funding is also not permitted, as Kickstarter is not an investment platform. Creators are also prohibited from raising funds for political campaigns or contests.

Prohibited Items

Kickstarter has a list of prohibited items that cannot be funded or promoted on the platform. These include dangerous or illegal items like weapons, drugs, and counterfeit goods. Kickstarter also prohibits projects that involve gambling, pornography, or any activity that violates intellectual property rights.

It’s important for creators to review these guidelines thoroughly and ensure that their project complies with the rules and does not involve any prohibited items. By doing so, creators can create a compelling and compliant project that resonates with potential backers and increases the chances of a successful funding campaign.

Table 5: Kickstarter Guidelines Overview

In summary, Kickstarter has specific guidelines in place to ensure the quality, integrity, and legality of projects on the platform. Creators should familiarize themselves with these guidelines and ensure their project complies with the rules and does not involve any prohibited items. By following the guidelines, creators can maximize their chances of having a successful funding campaign on Kickstarter.

Tips for a Successful Kickstarter Campaign

Running a successful Kickstarter campaign requires careful planning and strategic execution. Here are some tips and strategies to maximize your chances of achieving your funding goal:

1. Create a Compelling Presentation: Your project page should be visually appealing, concise, and informative. Use high-quality images and videos to showcase your idea and clearly explain how it benefits potential backers.
2. Set Realistic Funding Goals: Determine the minimum amount of funding you need to bring your project to life, and set your goal accordingly. Backers are more likely to pledge if they see that your project has a realistic chance of success.
3. Offer Attractive Rewards: Incentivize backers by offering appealing rewards at different pledge levels. Make sure the rewards are relevant to your project and provide value to your supporters.
4. Engage with Your Audience: Regularly update your backers and respond to their comments and questions. Building a strong connection with your community fosters trust and encourages continued support throughout the campaign.
5. Promote Your Campaign: Use social media, email marketing, and other channels to raise awareness about your project. Collaborate with influencers or partners who can help you reach a wider audience.
6. Build Momentum: Launch your campaign with a bang by rallying your friends, family, and close network to pledge and spread the word. The initial surge of support can attract more backers and create a sense of urgency.
7. Be Transparent and Authentic: Be honest about the challenges and risks associated with your project. Transparency helps to build trust with your backers, and authenticity resonates with supporters who believe in your vision.

By implementing these strategies and staying dedicated and focused throughout your campaign, you can increase your chances of running a successful Kickstarter campaign.

Kickstarter’s Impact on Entrepreneurship

The rise of crowdfunding platforms like Kickstarter has had a significant impact on entrepreneurship, providing creators with new avenues to fund their projects and turn their ideas into reality. By connecting creators directly with potential backers, Kickstarter has democratized the funding process and opened doors to innovative projects that may have struggled to secure traditional financing.

One of the key benefits of Kickstarter is the access it provides to a global audience. Unlike traditional funding methods that may be limited by geographic boundaries, Kickstarter allows creators to showcase their ideas to a wide range of potential backers from around the world. This exposure not only increases the chances of securing funding but also generates valuable feedback and support from a diverse community of supporters.

Furthermore, Kickstarter offers funding opportunities for creative projects that may not fit the criteria of traditional investors or lenders. Entrepreneurs working on niche or unconventional ideas can use Kickstarter to connect with backers who have a specific interest in their field. This targeted funding approach allows creators to pursue unique and innovative projects that may not have found support through traditional channels.

In addition to funding, Kickstarter also provides creators with a platform to build a fan base and customer community. By engaging with backers throughout the funding process, creators can cultivate a loyal following who are invested in their success. This community-building aspect of Kickstarter can pave the way for future projects and create a strong foundation for ongoing entrepreneurship.

In conclusion, Kickstarter has revolutionized the way entrepreneurs approach funding and has become a catalyst for innovation in various fields. Its impact extends beyond financial support, offering a platform for creators to connect with backers, access global audiences, and pursue unique and unconventional projects. With Kickstarter, entrepreneurship has been empowered and creative ideas have been given the opportunity to thrive.

Comparison of Kickstarter with Other Crowdfunding Platforms

Kickstarter is one of the top online crowdfunding platforms available, offering creators a platform to showcase their ideas and connect with potential backers. However, it’s important to note that there are other crowdfunding platforms that offer similar services and features. Let’s take a look at some popular alternatives to Kickstarter and compare their key aspects:

Indiegogo

Indiegogo is another well-known crowdfunding platform that provides options for both flexible and fixed funding. Unlike Kickstarter’s all-or-nothing rule, Indiegogo allows creators to keep the funds even if they don’t meet their funding goal. This flexibility can be advantageous for projects that may not reach their full target but still want to receive the funds pledged by backers.

GoFundMe

GoFundMe, on the other hand, focuses more on personal fundraising campaigns rather than creative projects. It provides a platform for individuals to raise money for personal causes, medical expenses, education, and more. While Kickstarter is geared towards creative and entrepreneurial projects, GoFundMe offers a broader range of fundraising options.

Patreon

Patreon is a unique crowdfunding platform that focuses on providing ongoing support for creators. It allows creators to receive recurring payments from supporters in exchange for exclusive content, early access, and other perks. Unlike Kickstarter, which is primarily used for one-time project funding, Patreon enables creators to establish a long-term, sustainable income stream.

Each platform has its own distinct features and target audience. The choice between Kickstarter and other crowdfunding platforms depends on the nature of the project, funding goals, and specific needs of the creator. It’s important to carefully evaluate the features, guidelines, and success rates of different platforms before deciding which one best aligns with your project’s vision and requirements.

Kickstarter Success Stories: Inspiring and Funded Projects

Kickstarter has been a launchpad for numerous successful projects, helping creators turn their ideas into reality. These notable campaigns showcase the power of crowdfunding and the impact it can have on bringing innovative concepts to life. Here are just a few of the inspiring success stories that have captured the attention and support of backers on Kickstarter.

Exploding Kittens: A Card Game of Cat-Sized Proportions

“Exploding Kittens” exploded onto the Kickstarter scene in 2015, raising a staggering $8.8 million in funding. Created by Elan Lee, Shane Small, and Matthew Inman (creator of The Oatmeal), this strategic card game was a whimsical and hilarious take on Russian Roulette, but with exploding felines. The campaign attracted over 219,000 backers, becoming one of the most funded projects in Kickstarter history. Its success demonstrated the appetite for unique and entertaining game concepts, and the ability of Kickstarter to bring them to fruition.

Pebble Smartwatches: Timekeeping Innovation

In 2012, Pebble Technology introduced their groundbreaking smartwatches on Kickstarter, seeking $100,000 in funding. The campaign quickly gained traction and surpassed its goal, receiving a whopping $10 million in pledges. Pebble’s success story marked a turning point in the wearable tech industry, paving the way for future smartwatch innovations. The company’s commitment to Kickstarter as a launchpad helped fund their initial production and establish a passionate community of backers.

Monster 1.5: Wireless Audio Revolution

Monster Products, known for their high-quality audio equipment, turned to Kickstarter in 2016 to fund their Monster 1.5 wireless headphones. Their campaign skyrocketed, reaching its funding goal of $2 million within 20 minutes and ultimately raising a total of $1 million. The Monster 1.5 headphones showcased cutting-edge audio technology and appealed to audiophiles and music enthusiasts alike. This project’s rapid success demonstrated the strong demand for wireless audio solutions and the Kickstarter platform’s ability to attract industry-leading brands.

These success stories are just a glimpse into the vast array of funded projects on Kickstarter. From innovative games to groundbreaking technology, Kickstarter continues to provide a platform for creators to share their ideas and secure the funding needed to bring them to life. These projects not only showcase the creativity and ingenuity of creators but also highlight the power of community support in making dreams a reality.

Conclusion

In conclusion, Kickstarter is a widely recognized crowdfunding platform that offers creators the opportunity to transform their ideas into reality. By connecting creators with backers who are passionate about innovative projects, Kickstarter has revolutionized the way projects are funded and has created countless opportunities for aspiring entrepreneurs to showcase their talents.

One of the key benefits of using Kickstarter is the ability to tap into a global audience and access funding opportunities that may not be available through traditional forms of financing. The platform’s guidelines ensure that creators present their ideas clearly and precisely, making it easier for prospective backers to understand the value they offer.

Successful Kickstarter campaigns have propelled numerous projects to success, with many achieving their funding goals and making a significant impact in their respective industries. This crowdfunding platform has not only democratized the funding process, but also played a pivotal role in fostering innovation and entrepreneurship across various fields.