Is Kickstarter Crowdfunding a Good Idea?

by | Nov 20, 2015 | Financial Services

Turning your ideas into a reality is always very difficult. Many entrepreneurs often spend years looking for investors in order to realize their business idea. However, bringing an investor on board is not always a good idea. For instance, when you bring on an investor, you will essentially be giving away a part of your company. If an investor believes in your idea, they will obviously want a piece of the equity. Are you willing to give a part of your dream away to someone else who’s solely motivated by the monetary potential?

Thankfully, Kickstarter crowdfunding now makes it easy for you to fund your project. Crowdfunding is one of the unique ways of generating cash to fund your business from the masses. Essentially, you are asking people to give you money in return for products and/or other incentives. Kickstarter is probably the most popular crowdfunding site today with around 25M unique visitors each month.

How Does Crowdfunding Work?

All you have to do is sign up, create your campaign page with your project or business idea and your good to go. According to the rules of the Kickstarter platform, you will also need to showcase a working prototype in order to be listed.  Once your campaign is listed, the next step is to promote the campaign using a variety of different sources, including social media and press connections. Once your campaign gains popularity, you will attract members of the general public to your crowdfunding page. They can choose from different reward tiers and give you a small amount of money, thus bringing you closer to the funding goal. If you reach the goal and manage to release your product, you must fulfill the promise to the backers.

There are different crowdfunding options available. People can start funding your business idea for as little as $5. You can choose the rewards accordingly so that people can choose how much they wish to contribute to your project.

Why Is It a Good Idea?

There are many reasons why Kickstarter crowdfunding is a good idea. For starters, you don’t have to give up control of your company. Once your business kicks off, all you need to do is send the promised items to those who contributed to your Kickstarter campaign. Crowdfunding is also a good option because it allows you to gain significant market attention even before your product launches. You should consider hiring a professional crowdfunding promotional firm to help you out. Crowdfunding is all about promotion and marketing. If you market your campaign well, crowdfunding can be a great way to make your business a success even before it officially launches. There are hundreds of different examples of projects that managed to succeed through crowdfunding campaigns. That’s why you should consider crowdfunding as a viable option.

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