How Does Kickstarter Work?
TLDRIn this video, Salvador Bregman demystifies Kickstarter, explaining how the crowdfunding platform works for launching new projects. He covers the importance of defining a project with a clear end goal, selecting the right category, creating a compelling campaign page, setting a funding goal, and understanding the all-or-nothing funding model. Bregman also discusses the role of backers, the significance of rewards and perks, and the community aspect of Kickstarter, emphasizing the platform's potential for creators to validate their ideas and build a following.
Takeaways
- 😀 Kickstarter is a major crowdfunding platform designed for launching new projects with a clear start and end date, aiming to create an end product.
- 🔍 While Indiegogo came before Kickstarter, Kickstarter has become one of the leading platforms in the crowdfunding industry.
- 🚀 Projects on Kickstarter should not be used for general charity fundraising but are for creating and delivering a specific end product.
- 🎯 Each Kickstarter project must fit into one of the predefined categories like technology, film, music, and many others, including subcategories.
- 📝 A successful Kickstarter campaign requires a well-assembled campaign page with a video, text, graphics, and clearly defined rewards for backers.
- ⏱️ Kickstarter campaigns have a set fundraising duration, which can vary from as short as 7 days to as long as 60 days, during which the goal must be met.
- 💰 The platform operates on an 'all-or-nothing' funding model, meaning creators only receive the funds if the campaign reaches or exceeds its goal.
- 🤝 Backers on Kickstarter are supporters who pledge money to projects they are interested in, with the expectation of receiving rewards or perks.
- 💳 Kickstarter charges a percentage fee of 5% on successful campaigns, plus payment processing fees, to support the platform's operation.
- 🌟 Rewards and perks are crucial for a Kickstarter campaign's success, offering backers exclusive items or experiences tied to the project.
- 📈 The Kickstarter community, including super backers and staff, plays a significant role in a campaign's visibility and support, emphasizing social capital within the ecosystem.
Q & A
What is the main focus of the 'Crowdfunding Demystified' YouTube channel?
-The main focus of the 'Crowdfunding Demystified' YouTube channel is to discuss crowdfunding, specifically how platforms like Kickstarter work, and how creators can use them to launch new products and projects.
Which platform is considered one of the major players in the crowdfunding industry, according to the video?
-Kickstarter is considered one of the major players in the crowdfunding industry, despite Indiegogo being the first platform.
What is a key requirement for a project to be launched on Kickstarter?
-A key requirement for a project to be launched on Kickstarter is that it must have a start and end date, and it should aim to create a new product or outcome that can be shared with backers.
What is the 'all or nothing' fundraising model mentioned in the video?
-The 'all or nothing' fundraising model means that creators need to hit or exceed their funding goal on Kickstarter to keep the funds raised. If the goal is not met, the funds are not collected from the backers.
What are the different components that make up a Kickstarter campaign page?
-The components of a Kickstarter campaign page include a video, text, graphics, and rewards that explain what the project is about and what backers will receive for their support.
What is the role of 'backers' in a Kickstarter campaign?
-Backers are individuals who support a project on Kickstarter by pledging money. They are essentially the followers and early adopters who are interested in owning new products and supporting creators.
What are 'rewards' or 'perks' in the context of a Kickstarter campaign?
-Rewards or perks are the exclusive benefits or products that backers receive for supporting a Kickstarter project. They are crucial for a successful campaign as they incentivize people to back the project.
What are the fees associated with a successful Kickstarter campaign?
-The fees for a successful Kickstarter campaign include a 5% percentage fee from Kickstarter and additional payment processing fees.
What is the significance of the Kickstarter community in the context of a campaign?
-The Kickstarter community is significant as it consists of super backers who regularly support projects. This community provides social capital and holds creators accountable for delivering on their promises, thus maintaining trust and engagement.
What is the purpose of 'updates' during a Kickstarter campaign?
-Updates during a Kickstarter campaign serve to keep backers informed about the progress of the project. They provide news, announcements, and the status of the product, helping to maintain engagement and transparency with the backers.
How does the video describe the process of launching a Kickstarter campaign?
-The video describes the process of launching a Kickstarter campaign as involving several steps: having a project with a start and end date, fitting the project into a category, creating a campaign page with necessary components, setting a fundraising duration and goal, and engaging with the community through updates and rewards.
Outlines
🚀 Introduction to Kickstarter and Crowdfunding Basics
Salvador Bregman introduces the topic of crowdfunding, specifically focusing on the Kickstarter platform. He explains that Kickstarter is one of the primary crowdfunding sites, despite not being the first, and emphasizes its purpose for launching new projects. Bregman clarifies that projects on Kickstarter should have a clear start and end date and a tangible end product, distinguishing it from charity fundraising platforms. He also introduces the concept of project categories on Kickstarter, which are essential for organizing and finding projects on the platform.
🎨 Understanding Kickstarter's Project Categories and Rewards
The speaker delves into the importance of categorizing projects on Kickstarter, noting that there are numerous categories ranging from technology to theater. He suggests browsing the Kickstarter website to understand these categories better and to support other creators. Bregman then discusses the necessity of creating a compelling campaign page, which includes a video, text, graphics, and rewards. He explains that rewards are a critical component of a successful campaign, offering backers exclusive perks for their support.
💰 Kickstarter's All-or-Nothing Funding Model and Fees
Bregman outlines Kickstarter's all-or-nothing funding model, where creators must reach or exceed their funding goal to receive any money. He highlights the importance of setting a clear fundraising duration and goal, and touches on the psychological impact of deadlines in motivating backers. The speaker also introduces the concept of fees associated with Kickstarter, which includes a percentage of the funds raised if the campaign is successful, plus payment processing fees.
🤝 The Power of Community and Social Capital in Crowdfunding
The speaker discusses the community aspect of Kickstarter, referring to it as an ecosystem where 'super backers' regularly support projects. He emphasizes the social capital and trust involved in crowdfunding, which encourages creators to deliver on their promises to backers. Bregman also mentions the potential for repeated successful campaigns and the benefits of building a following within the Kickstarter community.
📈 Kickstarter as a Launchpad for Business and Creative Validation
Bregman wraps up the discussion by highlighting Kickstarter as a platform for not just funding, but also for validating ideas and building businesses. He talks about the process of updates during a campaign and the importance of keeping backers informed. The speaker also mentions the potential for creators to graduate from Kickstarter to other platforms, such as Shopify or Amazon, and the value of receiving feedback and seeing one's product in use.
Mindmap
Keywords
💡Kickstarter
💡Crowdfunding
💡Project
💡Category
💡Campaign Page
💡Funding Goal
💡All-or-Nothing
💡Backers
💡Rewards and Perks
💡Fees
💡Community
💡Updates
Highlights
Kickstarter is a major crowdfunding platform designed for launching new projects and creations.
Indiegogo was the first crowdfunding site, but Kickstarter is the dominant player in the industry.
A project on Kickstarter must have a start and end date with a defined end product, unlike charity fundraising.
Kickstarter projects are categorized into major categories like technology, film, and arts, which are crucial for campaign visibility.
A campaign page on Kickstarter includes a video, text, graphics, and rewards to entice backers.
Fundraising duration is the set time for the campaign to be open to the public, which can vary from 7 to 60 days.
An all-or-nothing funding model is used on Kickstarter, meaning creators must meet or exceed their goal to receive funds.
Backers are individuals who support projects on Kickstarter, often receiving exclusive rewards or perks.
Rewards and perks are essential for a successful Kickstarter campaign, offering backers exclusive access to products or experiences.
Kickstarter charges a percentage fee on successful campaigns, ensuring a curated marketplace of quality projects.
The Kickstarter community, including super backers, plays a significant role in supporting and validating new ideas.
Updates are an ongoing process throughout the Kickstarter campaign, keeping backers informed and engaged.
Graduating from Kickstarter can lead to starting one's own e-commerce store or business, expanding beyond the platform.
The Kickstarter Launch Formula book provides a step-by-step guide for launching a successful campaign.
Kickstarter serves as a platform for creators to test ideas and gain feedback, acting as a business bootcamp.
Alberto Bregman emphasizes the importance of community and social capital in Kickstarter's ecosystem.
Transcripts
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