Kick_Start_Me_Up

Kickstarter (also see https://www.ycombinator.com/)

The mission of The Web service Kickstarter is to help creative people
    -- artists, musicians, filmmakers, designers and the like
-- fund their own creative projects.

Today, creative people are more likely to receive funding from private studios and galleries,
non-profit arts organizations or government agencies like the National Endowment for the Arts (NEA).

But arts grants like these are very difficult to secure and are rarely available for smaller sums of money.
Kickstarter is revolutionary because it turns average Internet users into patrons of the arts
-- sometimes for $5 or less.

Kickstarter is the leading example of an exciting idea called crowdfunding.
 Crowdfunding is a twist on crowdsourcing, in which an organization uses the talents and time of
    hundreds, thousands or millions of people to create or improve a product or service
        Wikipedia is a prime example of crowdsourcing

Similarly, Kickstarter uses crowdfunding to pay for creative projects
    by soliciting small donations from the "crowd," which are the anonymous patrons that visit the site.
    Kickstarter didn't invent crowdfunding: Different Web sites, blogs and charitable organizations
    have been perfecting the idea of so-called micropatronage since the mid-1990s.
    President Barack Obama funded 88 percent of his 2008 presidential campaign through individual donations,
    many of them small ($250 or less) and collected via the Internet [source: OpenSecrets.org].

But part of the reason Kickstarter has been so successful
    has to do with the subtle twists and restrictions it has imposed on the crowdfunding model.

producing over $75 million in arts funding in two short years


When Kickstarter finally launched in 2009, it did so with some effective new twists on the crowdfunding model.
 First, Kickstarter would be exclusively for creative projects.
    No charities,
    no "pay my rent" or "pay my tuition" solicitations,
    no startup funding for vague business plans,
    nothing that didn't have to do with the funding of a clearly defined creative project
    with a tangible final product.

But the second twist has proven to be the most powerful. On other sites like IndieGoGo (which now solicits funding for all sorts of projects),
    participants set a funding goal, but even if that goal isn't reached,
    they still get to keep the money they raised (minus a 9 percent commission).

Kickstarter imposes a strict all-or-nothing policy:
    Backers of your project pledge a certain amount of money,
    but you only get that money
        if
    the total amount of pledges reaches or exceeds your funding goal.

You either get 100 percent funding for your project or nothing at all.
Likewise, Kickstarter only collects its 5 percent commission if you reach your funding goal.

According to Kickstarter, the all-or-nothing policy has several advantages for both creators and backers.
For creators, it allows them to pitch an idea for a project without risk.
If they don't get full funding, they move on to the next idea.
If they do get full funding, they have all the money they need to complete the project.
The danger of partial funding is that you only have enough to create an inferior product, which alienates investors.

For backers, you know that your money will only be spent if the project gets a green light.
You're not tossing money into a tip jar; you're investing in a tangible product with tangible returns.

Which brings us to the next important twist of Kickstarter:
    Creators are required to offer rewards to backers.
    There are different rewards for differing funding levels.

    A typical $25 reward is a copy of the product itself,
        such as a CD of the new album or a DVD of the documentary.

    Larger donations might win you a mention in the liner notes or even a producer credit on the film.

    Big-time donations can lead to a dinner with the author or a personal tour of Tokyo's art galleries.

In this way, the rewards system acts like a pre-order mechanism.
    Pay $25 now and you'll get this product that will eventually retail for $40.
    But on an emotional level, the Kickstarter system connects people with the artistic process.
    Backers can become early supporters of an artist and a project that they believe in,
    and that alone can be thrilling enough to fork over $25

Now let's take a closer look at what qualifies as a Kickstarter project,
    as well as a look at some of the most successful projects to date.


Kickstarter calls itself a "funding platform for creative projects." That means that any project posted on the site
    must be creative in nature. According to Kickstarter project guidelines, "creative" means anything in the fields of
    art, comics, dance, design, fashion, film, food, games, music, photography, publishing, technology and theater.
    A Kickstarter project must also be a proposal for a project, not a sales pitch for an existing product or service.

Another interesting twist of the Kickstarter model is that you can't just pop onto the site, register and post your project.
    First you must submit a project proposal to the Kickstarter staff,
    which will review your idea and decide if it meets the Kickstarter project guidelines.

According to co-founder Yancey Strickler, Kickstarter approves about half of the submissions it receives,
    filtering out charity solicitations and non-creative business ideas


The Kickstarter staff admits that some projects walk the line, and the approval criteria are constantly evolving.
    For example, the highest funded project yet on Kickstarter is for a
        sleek watchband that holds an iPod Nano.
    The project, launched by a small Chicago-based design firm, had a funding goal of $15,000,
        but eventually received almost $1 million in donations.
        In this case, a $25 donation got you a watchband that now sells for $39.95 at the Apple Store.
        So that million bucks was essentially a pre-order on a cool new product.

Co-founder Yancey defends it as an artful design gone viral,
    but critics say it turns Kickstarter into an online retailer
        instead of a grassroots crowdfunding platform


As of July 2011, Kickstarter had helped to successfully fund over 10,000 creative projects.
    Over 60 percent of successfully funded projects fall into the categories of
        music (3,110 projects) and
        film and video (3,048).

But that doesn't stop folks from proposing some truly unique ideas,
    like the artist couple that wants to mail handwritten letters to every person on Earth
    (they've already successfully funded letter-writing campaigns to a village in Ireland and a neighborhood in Pittsburgh, Penn.).
    Or the guys designing retro lacrosse socks. Or the lady funding her 50-state trip to try every vegan restaurant in America. (They all got funded, by the way.)

Of course, not every project works out. In fact,
    > 13,000 Kickstarter projects have failed to meet their funding goals.


The difference between a successful and unsuccessful Kickstarter project starts with the idea.
 Catchy, unique, fun and inspiring ideas are always going to garner more attention.
 But even the best idea can fail if it isn't priced correctly and
    isn't "sold" well on the Kickstarter site and across other social media platforms.

If you project is approved, a Kickstarter rep will contact you and help you to figure out the right funding goal for your project
    and the best rewards to offer at different funding levels.
    It turns out that there's some math behind all of the creativity.

For example, more than half of all successfully funded projects fall within the
    price range of $1,000 to $5,000,
    so if you want to increase your odds, choose a project with a budget in that price range


One successful Kickstarter suggests that you figure out the
    minimum scope of the project and calculate the
    minimum amount of money necessary to achieve it.
    Once you have that number, decide if it's a realistic amount to raise given your social network contacts and range of influence

It turns out that the size of your social network is key to the success or failure of a Kickstarter project.
    Every successful project begins with an “anchor audience” of
        friends,
        family,
        fans and
        clients that are firmly within the creator’s social circle
    If that circle includes the kind of people with spare cash to support creative endeavors, you have an advantage.

The next step is to promote your project across popular social networking sites like Facebook and Twitter,
    providing project updates and easy ways for friends to spread the word.

Another key to a successful Kickstarter project is a good story.
    Kickstarter heartily encourages creators to
        make a video of their funding pitch.
        Kickstarter videos are a wonderful way to tell your personal story and
        make a humble plea for financial support.
        Most videos have a quirky sense of humor and a consciously low-budget aesthetic.

As for reward levels, Kickstarter has done the math on this one as well.
    The $25 level is the most popular donation, representing 18.41 percent of pledges.
    The $50 is the second most popular pledge at 13.57 percent of the total.
    Interestingly, donations of $100 have the biggest impact on total dollars raised,
        even though they make up less than 10 percent of pledges

What's the takeaway message? Stick with these contribution levels and you'll maximize your donations
    And be creative with your rewards: Include higher pledge levels with really personalized prizes.
    You never know who you might hook.
    Interestingly, 94 percent of successfully funded projects exceed their funding goals [source: Kickstarter].

===========================
Other fund raising sites:
http://www.gofundme.com/
https://www.indiegogo.com/
https://www.indiegogo.com/explore/technology
  ...you get "PERKS" from the builder, based on how much you give
      ...ex: they might name a component or part after you :-)

Listing:
http://www.crowdfunding.com/