Kickstarter – Launch your product when you’re broke

Pricing and Trends Analysis:

Have an idea for a really cool product but don’t have cash to launch your product? That’s where Kickstarter comes in. Since launching in 2009, this funding platform has helped thousands of entrepreneurs fund ideas through community support.
Here’s how it works: Funders aren’t investing in your idea, instead they’re purchasing a product or experience that you decide to offer based on their level of commitment. For example, for $1 you could add their name to your product’s website but for $25 they would get one of the first copies of the product. You set the levels and but keep in mind that Kickstart takes a 5% fee plus credit card fees.

What really sets Kickstarter apart is their all or nothing funding model. When you apply to Kickstart, you decide how much money you want to raise. You can raise more than that but no one is charged if you raise less than your stated amount. This ensures funders are protected and you won’t have to launch your idea without adequate funding.

Keep in mind a few things. First, you have to apply to Kickstarter in order to get your project listed on their website. Second, you need to have a well defined idea or your project either won’t be accepted and even if it does…probably won’t receive much funding. Third, while you can just use images, using video instead can really help. Fourth, once you launch promote your project with your friends, family and community. There are a ton of projects already on Kickstarter and you want to make sure everyone is aware of yours.

Before you apply, check out similar projects that have been successfully funded. This will give you a better idea of what the community is willing to support. If you think Kickstarter is for you, check out their blog post on trends in pricing and duration. The folks at Kickstarter analyzed a year’s worth of projects to determine the best price points and project durations.

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