Kickstarter is a way to fund a creative project. Its mission is to bring these types of campaigns to life, and create a project with a funding goal and project deadline. Then Kickstarter backers can pledge cash.

Basically, this is a crowdfunding platform for entrepreneurs looking for alternative funding. You’ll need to follow some steps and there are some payment processing fees for the raised money.

What Is Kickstarter?

There are lots of different sites that raise funds. Kickstarter is different from other crowdfunding platforms. This one is dedicated to supporting the creative ecosystem. They are a community of people like poets, painters musicians, and writers as well as gamers and others. It started out in 2009 and has become a Public Benefit Corporation since then. Kickstarter is an independent company with around 80 people that work together.

The most winning Kickstarter projects that have been funded have won Grammys and Oscars. They are transparent about how their cookies collect information. Here are some cookies settings that reject info from Google.

How Does Kickstarter Work?

This is different from other crowdfunding campaign sites. A successful campaign will raise money for an individual project. Here’s how. A campaign creator sets both the deadline and the funding goals. These campaigns look for donors. The platform has been called crowdfunding because each project or idea looks for donations from a large number of people. Kickstarter funds come from people who enjoy creative efforts.

Kickstarter creators who miss their deadline don’t get any of the money raised. A project’s success depends on a community effort. That’s the ingredient for most successful projects.

READ MORE: How the Co-founder of Kickstarter Changed Startup Funding Forever

What Creative Projects Can Be Launched with Kickstarter?

Kickstarter-funded projects number in the hundreds of thousands. Project creators work in a variety of different fields from tech and design to illustration and comics. Here are some of the better projects.

Slow Rise Bakehouse Expansion

This is a bakery in Forest Grove, Oregon that’s looking to expand. They use different types of whole grains in their products and partner with farms nearby.

The Smart Belt

This Kickstarter project comes from Wilmington, DE. This is another one of the Kickstarter campaigns that has surpassed its funding goal. The product page contains a link designed to drive in more backers.

Domestic Duffel // Your Roadtrip Companion

The travel bag comes from a business owner with specific funding goals. This is one of the small businesses that offer several pledge options. Potential backers can go through a list of Add ons. Scroll down on the project page.

Black Coffins #2

A project’s success depends on creativity. This business idea is a good example. This is the second part of a supernatural western horror story. Some successful campaigns use the Kickstarter platform for comic books. Like this one. It has an interesting project page.

Capsule Gravity: Your Futuristic Efficiency Booster

This is a multifunctional timer with an excellent success rate on the site. It has reached and exceeded its fundraising goals. It’s one of the most successful campaigns on Kickstarter and a testament to their creative services.

READ MORE: Kickstarted Launches Designed by Artist

Can You Use Kickstarter for Business?

Raising money for a business is one of the options. This is an excellent platform for businesses and startups. It’s a great platform because you don’t give up equity or go into debt. If you’re a new business consider this crowdfunding site. It has helped over 224,973 projects with 82,311,041 pledges.

Kickstarter works without the need for a business loan. There are even some experts you can draw on for paid advertising. You can even use the default settings to change the currency you view your campaign in.

Does It Cost Money to Start a Kickstarter?

This funding platform charges 5% for the funds that are collected on any project. Your small business will also need to pay 3-5% as a payment processing fee. The platform fee and other transactions are processed through Stripe.

Kickstarter funding is based on the all-or-nothing funding model. That includes a set number of days to reach your goal.

How to Start a Successful Kickstarter Campaign

You will need many donors to reach the fundraising goal. Here is some advice on how to put together a winning project.

You need to set a realistic starting point. Based on the amount of money that you’re going to need. The idea is to cover costs
Decide on the channels that you’re going to use for your campaign. Social media sites work well.
Decide on the type of backer rewards you’re going to give out. Kickstarter has things they prohibit like financial returns. You can’t offer revenue-sharing. And you can’t offer equity. Or solicit business loans.
It’s a good idea to create a buzz with the landing page before your product launch. Here are a few tips on getting that right.
Take advantage of what the platform offers. Kickstarter offers some tools to get you started. There’s a Projects We Love badge, A Recommended section, and others. There are a number of different factors that influence how these work. However, one of the big ones is how much momentum you gain by putting together visitors and backers.

What Happens If a Kickstarter Project Fails?

A project can fall below its funding goal when it ends. Sometimes, a Kickstarter campaign has pledges you can’t collect on. Those get dropped after seven days. You’re Kickstarter account still gets the balance less fees when the campaign ends.

Can You Make Money on Kickstarter?

When you’re a project creator, 100% of the ownership of your work stays with you. However, you can’t use the platform for financial returns, to solicit loans or equity offers.

If you’re wondering about any possible legal action from using Kickstarter, follow this link. Any disputes are covered by New York State law.

Is It a Good Idea to Start a Kickstarter Campaign?

A successfully funded campaign works wonders for small businesses and startups. Nonprofit organizations that have issues raising enough money should consider the platform. But there are specific rules to follow.

Remember you’ll need a bank account to make the site work for you. Kickstarter is reliable and credible. It’s even funded by venture capitalists.

If you’ve still got questions about this platform, check out their recent articles.

Image: Envato Elements

This article, “What is Kickstarter?” was first published on Small Business Trends