Understanding Kickstarter
What is Kickstarter?
Kickstarter, born in Brooklyn back in 2009, is a cool hub for getting cash to kickstart your bright ideas. It’s that place where artists, gadget geeks, musicians, and tinkerers come together to get their projects off the ground. Folks have been flocking to it like it’s the latest blockbuster, with nearly 6 million backers pouring over $1 billion into about 59,000 projects! Now that’s a lot of moolah! People are backing a wild mix of things from jazz records to slick tech gadgets. (NR Media)
How Kickstarter Works
Jumping into Kickstarter ain’t rocket science. You whip up a project, set how much dough you need, and paint a picture of what backers will score for their support. Anything from a heartfelt “thanks” to a shiny new gizmo could be theirs. If you hit your target before the bell rings, the funds roll in. Miss it, and it’s back to square one—no money, no fuss for backers. (Double Jump Media)
Here’s the whole process in a nutshell:
| Step | Description |
|---|---|
| 1. Create a Project | Lay out your idea, name your price, and show off the rewards. |
| 2. Launch | Get your project live and spread the word like wildfire. |
| 3. Funding Period | A 30-day countdown to hit your funding target. |
| 4. Success or Failure | Hit the jackpot, and the funds are yours. Miss the mark? No harm, no foul. |
For small business dreamers, Kickstarter is a golden opportunity. It’s about more than just funding—it’s your stage to gain fans, turn heads, and rally a tribe around your masterpiece. If you’re fishing for even more financial options, check out kiva loans or minority business loans to keep those dreams alive and kicking.
Pros of Using Kickstarter
Kickstarter’s a nifty tool for small biz folks looking for cash to launch their dream ideas. It’s got some serious perks that can give your project the boost it needs. Let’s break it down on why Kickstarter might be your ticket to ride.
Testing the Market
Kickstarter lets you dip your toe in the water without diving headfirst into big expenses. You can put your bright idea out there and see if folks are into it. If people are itching to back your project and goals are met, your product gets made and delivered. It’s like a dress rehearsal to know if your concept rocks before going all-in. This little trick helps you keep the risks low while brewing your next big thing. Handy, right? (Double Jump Media).
Enthusiastic Backers
The folks on Kickstarter are often there ’cause they’re stoked about your idea, not just to make a quick buck. They’re like cheerleaders, hyped to be in your corner. Unlike the usual investors looking for dough returns, these backers are here outta pure interest. This vibe creates a buzzing community that’s ready to shout from the rooftops about your project and drop helpful hints along the way. Growing a crew of fans means you’re getting more than just spare change, you’re getting allies who rally behind your biz (Double Jump Media).
Increased Visibility
Getting on Kickstarter is like stepping into the spotlight. Your project can reach people far and wide, and that’s cool! You’re not just getting eyeballs; you’re getting street cred. A bang-up Kickstarter campaign can give folks faith in your project, setting up your brand from the get-go. Show ’em your dream with a killer story and eye-catching pics, and you’ll pull in a crowd that’s hungry to see you win.
To wrap it up, Kickstarter gives small business peeps a shot at testing ideas, building a team of fired-up supporters, and getting major attention—all key for kicking off a successful gig. If you’re hunting for cash options, give Kickstarter a thought, along with minority business loans or commercial real estate loans.
Cons of Using Kickstarter
Crowdfunding on Kickstarter might sound like the perfect solution for your project cash-flow troubles, but there are a few hiccups worth knowing before jumping in. Here’s some real talk on the main things you might run into when using this platform.
High Competition
Think of Kickstarter as a mega-mall, packed with over 175,000 projects all vying for attention. Striking gold here ain’t easy. Only about 35% of projects hit their funding targets (Double Jump Media).
| Stats | Percentage (%) |
|---|---|
| Projects funded | 100 |
| Projects that hit target | 35 |
With so many folks pitching their ideas, getting your project noticed takes some serious elbow grease and a marketing strategy that pops.
Goal Achievement Rate
Making your target can feel like trying to win the lottery. Kickstarter uses an all-or-nothing approach. If you don’t reach your goal, you zip away with nada, and your backers’ credit cards stay untouched (Kickstarter Learn). This do-or-die system can scare off potential supporters, knowing no one gets anything if you fall short of the mark.
Funding Model
Kickstarter’s cash-grabbing setup is no picnic either. There’s the 5% cut that Kickstarter takes, plus you’re looking at a 3% to 5% payment processing fee. So, you pocket slightly less than you thought, even if everything goes your way (Wikipedia).
| Fees | Percentage (%) |
|---|---|
| Kickstarter’s take | 5 |
| Processing cut | 3-5 |
| Total slash | 8-10 |
Plus, there are rules to stick to: no equity offers or charity fundraising allowed (Hatchwise). Knowing these can help you figure out if Kickstarter’s right for you or if you should look elsewhere.
Sure, Kickstarter can open doors for funding—but with steep competition, target-reaching challenges and a fee-happy funding plan, weigh the pros and cons based on what’s best for your biz. If you’re thinking of other ways to get some cash, give minority business loans, EIDL loan approved now what, or accounts receivable financing a peek.
Categories on Kickstarter
Getting the hang of Kickstarter categories can help you figure out where your project fits best and how to catch the eye of potential backers. Kickstarter neatly sorts projects into various types, making it a breeze for you to browse and find your spot on the platform.
Project Categories
On Kickstarter, you can tuck your creation into 13 big categories and 36 smaller ones. From paintbrush wonders to gadget magic, there’s a cozy nook for almost any creative idea. Here’s a sneak peek at the categories you can dive into:
| Category | Examples |
|---|---|
| Art | Installations, paintings |
| Comics | Graphic novels, webcomics |
| Crafts | Handmade goods, DIY kits |
| Dance | Performances, educational dance |
| Design | Product design, fashion |
| Film & Video | Shorts, documentaries |
| Food | Cookbooks, gourmet foods |
| Games | Board games, video games |
| Music | Albums, performances |
| Photography | Projects, exhibitions |
| Publishing | Books, magazines |
| Technology | Gadgets, apps |
| Theater | Productions, scripts |
Kickstarter’s all about fueling creative projects like these, giving individuals and teams a platform to rally fans from around the globe.
Top Funded Categories
Some categories on Kickstarter rake in the big bucks more often than others. These heavy hitters not only attract lots of cash but also help dreams become reality:
| Category | Total Funds Raised |
|---|---|
| Film & Video | $88 million |
| Music | $82 million |
| Games | $27 million |
These categories are fan favorites and are worth considering if you’re cooking up something in one of these areas with a proven track record of snagging backers (Kickstarter).
Knowing your categories means you can whip up a project that clicks with those who might back you. Make sure to put together a catchy pitch that shows off the passion and creativity behind your idea. If you’re also on the hunt for more ways to fund your small business, you might want to check out minority business loans or see how to scoop up a business loan, even with less-than-great credit.
Successful Kickstarter Projects
Top Kickstarter Projects
Kickstarter’s like the treasure chest folks open to see dreams turn into reality, and some stories are too cool not to share. Here’s a peek at some Kickstarter legends that hit it big, showing how achievable goals and a pinch of magic can win over backers.
| Project Name | Category | Funds Raised (USD) | Funding Percentage (%) |
|---|---|---|---|
| Coolest Cooler | Product | 13.28 million | 26570 |
| Pebble Smartwatch | Technology | Multiple projects | Various |
| EcoFlow Home Battery | Technology | 12180% funding | Off the charts |
The “Coolest Cooler” is that one with all the bells and whistles, snagging a whopping $13.28 million. This gem isn’t just for keeping drinks cold—it crushes ice for your daiquiris and plays some tunes, making it a must-have for your next backyard bash. Pebble Tech showed off with its smart gizmos on your wrist, while EcoFlow cranked out home batteries that’ll keep your gadgets alive and kickin’.
Notable Kickstarter Creators
These folks have turned their creativity into cold, hard cash and aren’t shy about smashing milestones on Kickstarter. Their hustles not only bring wild ideas to life, but they also pull together buzzing communities that keep on giving.
- Ryan Grepper – This guy’s the brain behind the “Coolest Cooler,” and he’s proven that a cool concept and functionality can shake the money tree real fast.
- Pebble Technology – Known for popping out more smartwatches than you can count, these champs keep pushing what wearables can do, making ‘em a constant hit.
- Jared Polin – Running the show on “22 Years of Music Photography,” Polin hit 148% of his target in no time, showing he’s got more than just an eye for great shots.
These stories tell us that with a mix of grit and charm, the financial success is just the cherry on top of building a loyal fanbase. If you’re contemplating your funding journey, let these examples give you a nudge in the right direction. For those weighing their options, loans like minority business loans or commercial real estate loans might just be the ticket to keep pushing your business dreams forward.
Getting Started on Kickstarter
Ready to launch your brilliant idea into the world with Kickstarter? There are just a few steps to follow, but they’ll make all the difference in getting your project the love it deserves. This spot-on platform is great for creative gigs, and knowing what’s what will steer you to winning over those backers.
Setting Up a Project
To kick things off, you need to whip up a project page that’s both creative and all-business—a sort of digital handshake with potential supporters. Here’s what needs to be in your arsenal:
- Project Title: Gotta be catchy! Think of it as the headline for your masterpiece.
- Project Description: Spell it out! What’s your gig, why does it matter, and how’s it going to rock your backers’ worlds?
- Funding Goal: Be realistic about the cash you need to bring your vision to life.
- Deadline: Set your timer! Most projects run between 30 and 60 days.
- Reward Levels: Tempt your backers with goodies for their support—they need a little something to feel the love.
Kickstarter’s getting started guide will clue you in with helpful tips. It’s easy to set things up, but remember, approval isn’t a sure bet.
Guidelines and Requirements
Kickstarter plays by some rules to keep everything above board, and here’s the scoop:
| Do’s and Don’ts | What’s Up |
|---|---|
| No Equity Offering | Backers won’t get a cut of your empire—they’ll support your creativity purely. |
| Shareable Projects | Make your project the talk of the town—people should want to shout about it. |
| Charity Fundraising | Not the place for charity drives—stick to your creative guns. |
| Clear Project Information | Crystal-clear details make your project a backer magnet. |
| Compliance with Policies | Follow the rules according to Kickstarter’s guidelines. |
Kickstarter’s magic has helped rake in over $3.39 billion from nearly 14 million backers, all for creative dreams. Stick to the rules, and your shot at success grows by leaps and bounds.
Also, broaden your funding savvy by diving into types of SBA loans and peeking at options like kiva loans or minority business loans—they might just be your project’s best friend.
Backing Projects on Kickstarter
Thinking about jumping into the crowdfunding frenzy? You gotta get the lowdown on supporting projects on Kickstarter. This part lays out the nitty-gritty of pledging and how projects grab attention on the site.
Pledging Process
Ready to back a Kickstarter project? Here’s the scoop:
- Browse Projects: Curious about what’s out there? Kick it off by checking out all the cool stuff on Kickstarter. Just type what you’re looking for or browse the different categories to find your next obsession (Hatchwise).
- Choose Your Project: Found something that clicks? Dive into its page to soak in the details. You’ll uncover the project’s story, what it aims to achieve, and what goodies they’re offering to say thanks.
- Select a Reward Tier: Projects usually have different reward levels. Whether it’s early access, exclusive items, or just that warm fuzzy feeling of support, each level offers something cool based on what you chip in.
- Pledge Amount: Ready to commit? Punch in how much moolah you’re willing to pledge and follow the steps. If new to Kickstarter, you might need to set up an account.
- Payment Information: Time to bust out the plastic. Make sure you’ve got a major debit or credit card ready for backing (Kickstarter Help Center).
- Confirmation: Once you seal the deal, you’ll get a confirmation. Remember, they’ll only ding your card if the project hits its target by the deadline. If it doesn’t, your dough stays in your pocket.
Project Visibility
Want those backers? Having your project in the spotlight is where it’s at:
- Global Access: Kickstarter doesn’t shy away from borders. As long as someone’s got a major debit/credit card, they can jump in and support from anywhere (Kickstarter Help Center). This worldwide stage helps creators pull in folks from every corner.
- Easy Browsing: You don’t have to spend a dime to poke around. Just wander through categories or search to find your jam (Hatchwise). This easy access helps projects get face time with potential supporters.
- Categories and Features: Projects get grouped into categories so you can easily stumble upon stuff that piques your interest. Featured projects get a boost, popping up front and center to grab your eye.
Projects that pop with clear benefits, solid goals, and eye-catching visuals have a better chance of winning you over. Curious about other ways to get funds rolling? Check out our pieces on kiva loans and minority business loans for some neat alternatives.
Kickstarter Accessibility
So, you’re thinking about getting your small biz dreams crowdfunded on Kickstarter, huh? Well, knowing how open and accessible it is can really amp up your game. It’s a golden opportunity for folks far and wide to jump on board and back your bright idea.
Worldwide Backing
Kickstarter ain’t just for your neighbor down the street. Nope, it’s wide open to backers across the globe. Anyone with a major debit or credit card and a Kickstarter account can jump into the action. So, no matter where they sip their morning coffee, they can support your creation (Kickstarter Help Center).
Here’s a bite-sized look at where creators can kick off their projects and what card magic works for them:
| Country | Payment Gobbledygook |
|---|---|
| United States | Major debit/credit cards |
| United Kingdom | Major debit/credit cards |
| Australia | Major debit/credit cards |
| Canada | Credit cards only |
| Europe (euro zone) | IBAN from selected places |
| Japan | Major debit/credit cards |
If you’re cooking up a campaign in Europe using euros, you can roll with an IBAN from certain nations. Heads up, though: creators gotta have a home base and IDs to show in the country they choose to launch from (Kickstarter Help Center).
Project Launch Requirements
Got a light bulb moment you wanna get off the ground on Kickstarter? There are a few hoops to leap through. Here’s the lowdown:
- Category: Your creation needs to fit into a creative category, like Art, Comics, Crafts, Dance, Design, Fashion, Film & Video, Food, Games, Journalism, Music, Photography, Publishing, Technology, or Theater.
- Project Verification: Get your account verified. It’s like flashing your membership card – boosts your street cred and helps win over potential backers.
- Documents: Depending on where you’re setting up shop, you might need to flash some official paperwork for ID checks.
If you’re fishing for more funding routes beyond Kickstarter, take a peek at kiva loans or minority business loans. Knowing these ins and outs will get you geared up for a smashing Kickstarter run and boost your odds of snagging the funds you need to turn your small business dream into a reality.
