3 Things To Think About On Kickstarter
The concept of crowdfunding isn’t so new anymore since the new “Veronica Mars” movie has been completely funded by Kickstarter. However, now more celebrities and larger companies are jumping on the bandwagon and it’s leaving a lot of people with a bad taste in their mouths. Below is our guide to making good choices before joining a crowd-funding movement.
[success]1. The Cause[/success]
Kickstarter is a great tool and nearly every industry is represented on the crowdfunding website. However, we highly recommend being smart with your choices. If you’re really passionate about a project and you want to back it, then go for it. But if you’re just backing something because everyone else is, take a step back and think about it. Will your backing this project help produce something brilliant or something mundane? All we’re saying here is before you give $50 to the guy that’s developing a new flavor of hot sauce, try and find something that will actually be helpful to humanity – like helping a school raise money to buy all new textbooks for their students.
[success]2. The Incentive[/success]
All Kickstarter projects have incentives, depending on how much you donate. For example, a startup fashion designer might offer a t-shirt with the new company’s logo on it for every person that backs $25. That seems like a fair exchange. Make sure that the incentive matches the amount you’re backing the project with. If you’re willing to throw down $1,500 just for a shout-out at the end of a YouTube video, you may need to rethink your priorities. Remember, Kickstarter makes YOU the investor, so be smart and know what you’ll be getting when you give.
[success]3. The Money[/success]
Knowing how much to give to a project can be tricky. First of all, think about how much you can afford to give. There’s nothing wrong with just giving $5 if that’s all you can afford and really want to help. However, if you’re a company and you’re looking to somehow get sponsorship in exchange for backing a project, you need to sit down with your team and really think about the long term effects of backing a certain project. Does it fit with your company’s target audience? Does it make sense with your marketing strategy? And can your company take that kind of risk?
[framed_box width=”0″ height=”0″]Related Topic: What Is Crowdfunding?[/framed_box]
[error]We love Kickstarter and all the other crowdfunding sites out there. Get involved but be smart about it! Tell us about your experiences with Kickstarter or another crowdfunding project in the comments section![/error]
photo credit: AslanMedia via photopin cc
If you want to invest in a projects on kickstarter.com, the first you should find out about the project. Strengths, weaknesses, ability to successfully percent. Better you should invest in the project you interested, and have knowledge of it. You will know how much money should be invested in projects to not face the most risk. Good luck ! Wish you being smart with your choices.
To be the honest with you I didn’t know much about croudfunding before and this article gave a whole new idea of investing. I am very grateful! I will do more research on it now. Thanks a lot.
It’s good to point out that giving just $5 is okay. That allows you to give a small bit of help to a lot of projects. In these times when most people are so disenchanted with the greed and dishonesty of corporate banks, I think it’s more important than ever to help people fund projects without going into unreasonable debt. America is about ingenuity and supporting the creative spirit, and supporting one another – let’s be Americans again and reward people who are doing things the fair and honest way.
Hey, I think helping someone create a new bbq sauce has value! What if it creates a job for a guy who got laid off and has nowhere else to go to support his family? But he knows how to make a mean bbq sauce – who’s to say that his dreams are not as valid as anyone else’s? Just saying …
Honey,
Good point! Which is why we say if you believe in something, go for it.
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