Kickstarter

Definition

Kickstarter is a popular crowdfunding platform that allows creators to raise funds for their projects by soliciting contributions from the public. It connects artists, inventors, and entrepreneurs with potential backers who are interested in supporting innovative ideas, often in exchange for rewards or early access to products. This model is significant in the context of crowdfunding and direct reader revenue as it empowers creators to bypass traditional funding sources and engage directly with their audience.

5 Must Know Facts For Your Next Test

1. Kickstarter was launched in 2009 and has since facilitated the funding of over 200,000 projects across various categories, including art, technology, and film.
2. The platform operates on an all-or-nothing model, meaning that projects must reach their funding goal within a set timeframe to receive any funds.
3. Kickstarter has helped bring many successful products to market, including the Pebble smartwatch and Exploding Kittens card game.
4. Creators on Kickstarter must offer enticing rewards to backers, which can range from digital downloads to exclusive merchandise or experiences.
5. The platform has fostered a sense of community among creators and backers, allowing them to interact and share updates throughout the project’s lifecycle.

Review Questions

• How does the all-or-nothing funding model on Kickstarter influence creators' strategies when launching a project?
  • The all-or-nothing funding model on Kickstarter compels creators to set realistic and achievable funding goals, as they will only receive funds if they meet this target within the designated timeframe. This encourages them to carefully plan their marketing strategies, create appealing rewards for backers, and build a strong promotional campaign leading up to their launch. By doing so, creators aim not just to reach their goal but ideally to exceed it for additional resources and support.
• Discuss the impact of Kickstarter on traditional funding methods for creative projects and how it has changed the landscape for independent creators.
  • Kickstarter has significantly altered traditional funding methods by providing independent creators with an alternative way to finance their projects without relying solely on investors or loans. This democratization of funding allows artists and entrepreneurs to directly engage with their audience, garner support from fans, and validate their ideas before full-scale production. As a result, many successful ventures now emerge from grassroots support rather than conventional industry backing.
• Evaluate the long-term implications of using Kickstarter as a funding source for creators in terms of sustainability and community engagement.
  • Using Kickstarter as a funding source can have both positive and negative long-term implications for creators. On one hand, it fosters community engagement by enabling direct communication with backers, creating loyal supporters who may follow future projects. However, the pressure to deliver on promised rewards can strain resources and lead to challenges in project sustainability if not managed properly. Ultimately, success on Kickstarter can help build a creator's brand and fanbase while also introducing potential risks related to fulfillment and maintaining backer trust over time.

Related terms

Crowdfunding: The practice of raising small amounts of money from a large number of people, typically via the internet, to fund a new project or venture.

Backer: An individual who contributes funds to a project on a crowdfunding platform like Kickstarter, often in exchange for rewards or product access.

Rewards-based funding: A type of crowdfunding where backers receive non-financial rewards, such as products or experiences, in return for their financial support.