Kickstarter, a website launched in early 2009 that totes itself as “the world’s largest funding platform for creative projects,” is not exactly a new presence on the Internet, but its growing role in the world of crowd-funding projects cannot be diminished. With over $364 million raised for various projects over the last three years, it is clear that the market for new ideas is lucrative.
How does the Kickstarter service work? For those trying to get their projects funded, Kickstarter provides the guidelines for use of its services. Projects that fall under the categories of charity, cause, “fund-my-life” or open-ended fundraising are not permitted. All projects must have some creative purpose or intent. Creators behind an approved project must set a deadline and a minimum fundraising goal. The creator will not be able to collect any money if the public doesn’t pledge the minimum funds by the date of the deadline.
Of the funds raised for any given project, five percent is given to Kickstarter. Amazon takes an additional three to five percent because the Amazon Payments system is used to collect pledged funds from donors. In addition, though Kickstarter claims no direct ownership over any of the projects on the website, all projects that are launched on the site are archived and accessible to the public.
There is no guarantee, however, that a fully-funded project will be successfully completed or that those who launch fully-funded projects will use the funds towards those projects. In order to provide more quality control, the website recently started requiring all project heads to list the obstacles they plan to face and how they plan to deal with them. In addition, a blog post released earlier this month from the website’s founders states that, “Kickstarter isn’t a traditional retail experience,” warning people to be cautious about the projects they choose to back.
Kickstarter, which has been lauded by such publications as Time and The New York Times, facilitates the ideas of people from all walks of life. Amateur musicians like Jakob Berger, restaurateurs such as Sarita Ekya and celebrities like Whoopi Goldberg have all turned to Kickstarter to try and launch their own projects, ranging from a collapsible recording studio to a potential new restaurant idea to a documentary film. Getting the word out about individual projects relies heavily on word-of-mouth promotion and social media, giving a fair chance for all projects to achieve success.
And with a forty-four percent success rate (in terms of achieved funding) for 71,682 launched projects as of today, it is clear that a hefty number of projects now have the potential come into fruition. The website’s founders insist that, “The best rule of thumb [is to] under-promise and over-deliver,” to earn both funding and the continued support of funders.
It is, however, a two-way street. Berger wrote in one post-project update, “I hope your lives are going along just beautifully, and I can’t thank you all enough for the support. I couldn’t have done this without you, and I truly appreciate everything. I hope you enjoy the sounds. Expect emails in the near future.” A positive Kickstarter experience depends on good relations and communication between the funder and the funded.
There is no doubt that Kickstarter appeals to people who believe that success can be achieved with hard work, good ideas and some community support. In a world where Amazon allows people to publish their own books, where YouTube gives aspiring filmmakers the freedom to share their work and where social media can internationalize any trending web content, Kickstarter appears to fit right in, providing opportunity to those who might otherwise not have the means to succeed on their own.
