Do you want to raise money on Kickstarter?
Are you unsure if crowdfunding is the right avenue for you?
In this post, I’m going to get into some of the drawbacks and benefits of using Kickstarter to raise funds. We’ll get down to the nitty-gritty, and realistically explore the potential for this site to work for you.
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Pros
I’d like to start out by acknowledging some of the pros for using Kickstarter as the site to launch your crowdfunding campaign. The platform provides many great features that can help to drive potential donors to your product.
Huge Marketplace
There is a huge population of people that are regularly visiting Kickstarter and browsing projects. In other words, there is an appetite for innovation with the community that visits the site, many of which are ready to donate to campaigns that ignite their curiosity and interest.
Compared to other platforms, Kickstarter is by far the largest crowdfunding site. You’re going to have the opportunity to tap into tons of consumer demand. This is always important, as the more people you can reach, the more potential you have to receive donations.
Familiarity
Kickstarter is a household name when it comes to crowdfunding; most backers have heard of the site. As opposed to other crowdfunding sites that are less recognizable and may require additional education to donors, Kickstarter stands as a trusted name in the industry. This makes people more comfortable to give their money over to a reputable site.
All-Or-Nothing Funding
All-or-nothing funding entails that you have to meet or exceed your fundraising goals in order to keep the money that has been pledged. As a creator, this might make you a little bit nervous. But consider this: if you don’t reach your initial crowdfunding goal, you may then not have the means to distribute the rewards that you’ve promised to your donors.
This makes potential donors skeptical. That’s why all-or-nothing funding is a great way to be transparent about what you can provide. If you don’t meet your crowdfunding goal the donors credit card will never be charged; thus giving the backer peace of mind when supporting your campaign.
Exclusive Service Providers
There are many outstanding service providers out there that work exclusively with Kickstarter campaigns. These companies recognize Kickstarter as their bread and butter, and will rarely venture out to other crowdfunding platforms.
That doesn’t mean that you can’t find a great service provider if you work with a site like Indiegogo, but do note that your options may be a bit more limited.
Functionality
Kickstarter has some vital functionality that is absent on other platforms. For example, Kickstarter offers a subscription-based crowdfunding feature similar to Patreon called Drip. You can also do a Kickstarter Live Event where you can interact with consumers, host a Q&A, and further demonstrate benefits of your product.
The analytics of Kickstarter are also very powerful. You can see where backers are coming from geographically, and also the frequency with which they return to your page.
Cons
Though Kickstarter certainly has many pros that can help to benefit your launch over other crowdfunding campaign sites, there are certain drawbacks as well. For every positive mentioned above, there tends to be an opposing negative.
Let’s check them out.
More Competition
A bigger marketplace is great for consumer demand, but it also leads to more competition. There are a lot more projects on Kickstarter than other platforms, which can make it difficult to stand out.
If you want to trend well on the site, you will have to market the product well. You will be competing with seasoned Kickstarter experts, so it can be beneficial to seek coaching from a crowdfunding expert like myself in order to rank better. I would also recommend checking out my book, The Kickstarter Launch Formula, for all the best tips and tricks regarding launching your project on the site.
No Flexible Funding
Unlike other platforms such as Indiegogo, you cannot keep the funds you raise if you don’t reach your crowdfunding goal. While this can be beneficial for the donors (as mentioned above), it can be a real detriment and disappointment to the fundraiser who may put in a great deal of work and reap no rewards.
Less Customer-Service Oriented
Kickstarter tends to be less attentive to their users than other crowdfunding platforms. They aren’t around to help you throughout the process, which is why you will have to do a great deal of your own research and seek assistance from industry experts.
My eBook, Tricks for Launching a Successful Kickstarter Campaign, serves as a comprehensive guide with over twenty interviews to teach you what it’s like to run a Kickstarter campaign from preparing the launch to getting backers, pledges, and media coverage.
Less Consumer Minded
The staff at Kickstarter is much more creatively oriented than business-minded. While this is certainly not a bad thing, they’re less commercial than sites like Indiegogo. With less concern surrounding profits, this will change what they choose to feature on the site, as well as some of the policies surrounding their campaigns.
Rules
You will have to abide by certain rules on Kickstarter that I want to make sure to mention.
Your product will have to fit into a specific category. If it does not fit into a category or goes against a prohibited item on Kickstarter, then you can’t launch a campaign. Additionally, you have to create every reward offered according to the Terms of Service, meaning that there is no reselling or repurposing of goods as rewards for your donors. And lastly, you cannot use Kickstarter for a charitable cause. You can run a project as a non-profit, but there has to be deliverables in exchange.
I hope you found this post to be helpful in introducing you to some of the pros and cons of Kickstarter for your crowdfunding campaign. Remember to check out my Youtube Channel and Podcast for tons of more great content surrounding your crowdfunding journey!
