Calling all entreprenuers! A new CD? A not-for-profit event? Anything in need of funding now has a new method of attracting potential donors- Kickstarter. Though companies have been using the internet for years to contact people for fundraising donation requests, until recently, the average entrepreneur didn't have that option. They had to stick to the traditional communication routes and keep their fingers crossed. Now, though they still have to cross their fingers, they have much easier channels of communication for setting up a project, contacting people and raising funds to get the project started. Kickstarter make it easy to create a project and generate buzz to get the word out to everyone anyone ever knew who might be interested in donating money to fund that project. Who knew fundraising could be so simple?
How Does Kickstarter Work?
According to founder, Yancy Strickler, "Kickstarter...uses crowdsourcing- a lot of people contributing a little bit to a single goal- to build support and momentum around an idea." Project creators basically rely on the ties of the power of the internet and their social networks (Facebook, Twitter and Myspace, among other social networking sites) to fund their project.
To create an account at Kickstarter, one simply signs up. Kickstarter then contacts the individual to let them know if their project has been approved for inclusion on their site. Yes, that is the kicker- Kickstarter does need to approve a project and "invite" a project creator to use their site.
Once someone gets approval for their project, they create a user name and password, log in, and basically get their own personal webpage to use to write up their project. The more detail and creativity included in their page, the more likely Kickstarter may feature the project on their front page.
After the page is built, the creator then needs to set up an account with Amazon (which handles the monetary donation transactions) through Kickstarter. Once the account is set up, the site goes live, and the creator is free to use email, Facebook, Myspace, Twitter and any other form of online communication to contact people about the project and request donations.
What Are the Drawbacks For the Entrepreneur Using Kickstarter?
Unfortunately, if a project does not raise the entire amount projected, the money donated thus far is returned to the donors, and the project creator sees none of the cash. Also, Kickstarter and their partner, Amazon, take a percentage of the money raised, so though a project may get fully funded on paper, in reality, the project first needs to pay off Kickstarter and Amazon before collecting the money, which means the funded will not see the full amount raised.
The site also relies heavily on social networking sites, like Myspace and Facebook, to spread the word. Since neither of these sites is particularly reliable, it does act to limit Kickstarter a bit.
How To Reach An Audience of Potential Donors
Kickstarter allows project creators the freedom to personalize their project as much or as little as they want, within the confines of the website's design. For example, creators can create tiered donation levels, offering incentives beyond a simple "thank you" for donations at each specific level, enticing potential donors to give more. Framed pictures, signed copies of manuscripts, personalized songs, credits- these are all options people use to get donors to give that little bit extra. And what better way to get someone to support a cause than to personally involve them by giving them something personal to commemorate their philanthropy?
Creators can also create a video clip to describe their project, adding a personal touch to what can often be interpreted as an impersonal act- asking someone for money. Creators who keep it clever, creative, and memorable have the additional opportunity of being featured on the front page of Kickstarter's site, giving even more access to potential donors. However a creator decides to create their page, what is most important is to get people's attention.
While Kickstarter isn't a perfect model, it is an excellent tool for getting projects out of stagnation and into gear. It means entreprenuers can get their project funded, provided they market it well and get enough people to believe in their cause to donate to it. With enough persistence and creativity, entreprenuers have a new tool to make their visions a reality.
Jennifer Vitanzo - A writer and editor by trade—be it articles, grants, songs, poetry or reviews—Jennifer can cover it all. She's a part-time ...
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