Jun 26, 2011

Kickstarter – new way to do fund-raising

Want to find a way to fund your project and short of money. This may be the answer for you.
=> Kickstarter.com
Here is the FAQ of the idea:

What is Kickstarter?

Kickstarter is a new way to fund ideas and endeavors.
We believe that…
  • A good idea, communicated well, can spread fast and wide.
  • A large group of people can be a tremendous source of money and encouragement.

Is Kickstarter an investment mechanism?

No. People who use Kickstarter to fund their projects (“project creators”) keep 100% ownership and control.

What’s in it for the people who pledge?

Project creators can offer products, services or other benefits (“rewards”) to inspire people to support their project: A hot-air balloon ride to the first person to pledge $300, an invitation to the BBQ for anyone who pledges more than $5, exclusive daily video updates for anyone who pledges more than $1. It’s up to each project creator to sculpt their own offers and there’s lots of cool ways to do it. (Want to see a great example? Google “Josh Freese”)
People who pledge also receive access to all project updates (posts, video, pics, etc.). “Project Updates” is our fancy name for the project blog. Some project creators may post 10 updates a day, others may rarely post. Some may make all their posts publicly viewable, others may set all their posts as exclusive to their backers.

Why is the money given called a “pledge”?

They’re pledges because money is collected only if a project reaches or exceeds its funding goal before time expires. If a project’s funding goal is $5,000 and only $4,999 is pledged when time expires, no money is collected. Zip, zero. Also, no rewards will be delivered. No funding, no rewards. Everyone walks away as if nothing happened.

Why is funding all or nothing?! Wouldn’t it be better to have some money than none at all?

Three reasons:
  1. It’s less risk for everyone this way. If you need $5,000, it can suck to have $2,000 and a bunch of people who expect you to be able to complete a $5,000 project.
  2. It allows people to test concepts (or conditionally sell stuff) without risk. If you don’t receive the support you want, you’re not compelled to follow through.
  3. It motivates. If you want to see a project come to life, it helps to spread the word.

How does the money stuff work?

Amazon.com processes all the pledges on Kickstarter. When you decide to make a pledge, we’ll quickly take you to Amazon.com to confirm. If you have an Amazon.com account this takes only a few clicks. If you don’t have an Amazon.com account, Amazon will ask you to register during the pledge process, but it’s relatively painless. You won’t need to do anything annoying (like stop in the middle and check your email).
Funding ends when time expires. At that point one of two things happens:
  1. If a project has reached or exceeded its funding goal when time expires, all backers’ credit cards are instantly charged and funds go directly to the project creator.
  2. If funding doesn’t succeed, all pledges are immediately canceled like nothing ever happened. That’s it!

What fees does Kickstarter charge?

Projects that launch on or after September 15th will be charged 5% of their funding total if — and only if — they are successfully funded. Projects that don’t reach their funding goal will not be charged. Learn more.
To clarify: This fee only applies to projects launched on or after September 15th (after midnight EST b/w September 14th and 15th). All currently active projects, regardless of end date, will be unaffected. This means that any project launched in the next two weeks will also be exempt; take advantage of the grace period while you can. If you launch a project on September 14th that ends in December, it will still be free.

Who can start projects on Kickstarter?

Kickstarter is for funding creativity and ambition — so, it’s a big umbrella. We love artists, writers, designers (of all kinds!), filmmakers, musicians, journalists, athletes, adventurers, inventors, bloggers, illustrators, explorers, curators, promoters, performers, and others.
Currently the ability to create a project is by invitation only. Learn more about invites.
Due to current Amazon Payments policy, projects can only be started by people or entities with a U.S. address and bank account.

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