Kickstarter the Science of Crowdfunding

KICKSTARTER: The Science of Crowdfunding S$SS$S$$$$$$$$SSSSSSSS$ There are many ways to make money online, but Kickstarter has taken things to a whole new level using a technique called "Crowdfunding". Through Kickstarter, artists can raise funding for a variety of projects by asking for pledges from the Kickstarter community. While some only make hundreds, others have raised millions using the Kickstarter community to fund their projects. So what's the story behind Kickstarter and Crowdfunding, how does it work, and most importantly. does it work? How It Works History of Crowdfunding STEP 1 ARTIST WITH AN IDEA 1997 An artist brings an idea/project to the Kickstarter team, and if approved, can KICKSTARTER TEAM ne idea of crowdfunding began in e music industry when American fans underwrote an entire US tour setup a project page. of the British group Marillion. They raised $60,000 through a donation driven internet campaign. steven taylor who needed his film financed, 2004 received 276% more than he the original team: perry chen, yancey strickler, requested The French film "Demain la Veille and charles alkr. (Waiting for Yesterday)" raised $50,000 in 3 weeks through online crowdfunding. WHICH (most successful kikstarter campaign in hisotry) CATEGORY? STEP 2- The project must fit into at least 1 of 15 categories: Art, Comedy, Comics, Dance, Design, 2005 Fashion, Food, Film & Video, Games, Journalism, Music, Photography, TechnologY. Theater, or Writing & Publishing. The term "Micropatronage" was made popular by blogger Jason Kottke, who quit his job for a year category technology the TikToktLanaTik watch kits campaign requested $15,000 and raised and relied on small donations from thousands of readers to his blog. 2006 $941,718, very sucuessful! August 12, 2006 The term "Crowdfunding" was coined by Michael Sullivan stating "Many things are important factors, but funding from the "crowd' is the base of which all RAISE MONEY FOR YOUR PROJECT STEP 3- else depends on and is built on. So, Crowdfunding is an accurate The project owner must set a goal amount and deadline for reaching the goal, a they receive enough pledges to meet the goal, then they keep the money, but if they don't meet the goal, they don't get any money and pledgers are not charged. This is called "all or nothing funding" or a "threshold pledge system." and if term to help me explain this core element of fundavlog." 2009 SET GOALS! Successful filmmaking, Diaspora Filmmakers raised $200,641 which was 2006% more than their initial request for $10,000. Perry Chen, Yancey Strickler, and Charles Adler begin Kickstarter in Manhattan's Lower East Side. 2010 $3,265 BACKERS PLEDGED OF S3,000 GOAL April 16, 2010 The Miami New Times calls Kickstarter "one of the smartest ideas for a website since Al Gore invented the Internet." STEP 4 Gif creators Tom Gerhardt and Dan Provost raised $134,417 which was 1378% more than their goal of $7750 and in return gave investors free Glifs and bonght dinner for those in NYC. SET REWARDS The project owner sets rewards for various pledge levels, this encourages the community to sponsor various amounts based on STEP 6 the reward they want. The project enters the Kickstarter community. STEP 5 The project owner creates a ENTER THE video to showcase their project and prove that they are who they say they are. Saccessful entry COMMUNITY Seott Thomas, Hhe design director of the Obama SHOWCASE YOUR PROJECT campaign, produced a book that chronices of art and design from twe kistoric campaign. DVD Lockpicks by Open Locksport creator Schuyler Towne shonicased his easy to use castom made lockpicks, and how they were a little different from wihat was already ont on the market. El RECEIVE THE FUNDS STEP 8- If the project owner meets or exceeds their goal, they receive all the funds minus 5% which goes to Kickstarter and 3-5% which goes to Amazon IF they are using Amazon payments to receive money. UPDATE YOUR STEP 7 INVESTORS amazonpayments Throughout the project, the project owner must include updates to keep their investors posted on how things are going. %24 Successful Campaigns The Maseopen campaign, which alerted investors on how to provide copyright free music content, explained how their donations would be used to purchase and rekase music to the public domain. These campaigns mentioned above have earned Kickstarter 5% of $1,863,147.00 Quick Facts: Kickstarter averages 1.1M visitors/month Kickstarter demographics by age: 0-17 18-24 1% 25-34 35-44 8% 27% 35% 45-54 16% 55-64 10% 65+ 2% Sources: http://en.wikipedia.org/wiki/Crowd funding http://en.wikipedia.org/wiki/Kickstarter https://www.kickstarter.com/help/taq https://www.google.com/adplanner/planning/site_profile ?hl brought to you by zippycart designed by nfographies menisiteDetails?identifier-kickstarter.com&ip=true