All The Hidden Fees Associated with Starting a Kickstarter Campaign Explained.
So you started a new business of some kind, whether it be a new game board, a movie, what have you. The costs are starting to pile up: equipment rentals, website costs, etc. You can try to keep it all under control by becoming an extreme couponer and using a godaddy renewal coupon to keep costs low, but eventually you need a cash infusion.
So what’s the solution? Create a Kickstarter! But before you start, it’s important to look at all the fine print associated with raising money. If you hit your target fundraising goal, do you get to keep all of it? You may want to make your target higher if there are fees involved. We try to go over all the hidden costs associated with a crowdfunding campaign.
Are There any Fees?
Kickstarter does charge a 5% fee after you successfully start your Kickstarter account and campaign. Once funds start flowing in, Kickstarter will apply a 5% fee which will then be applicable to all of the donations that are collected. There is also an additional processing fee for the company’s payment processor–which is Stripe. That can range from 3 to 5%. However, if a project does not reach is complete goal amount, there will be no fees deducted from anyone.
What is Kickstarter?
Kickstarter is the platform that is frequently used for crowdfunding. It funds creative projects ranging from gaming systems to filing, art, dance, music, design, and technology. Imaginative ideas and creators that are supported by others, this platform where a clear intended goal is published and it is made clear that a project will eventually be completed by the creator’s pledge.
What Should I Expect?
Kickstarter promotes an all-or-nothing funding policy which basically means that that absolutely no one will be charged any amount for any pledges unless that specific project reaches is actual funding goal. This makes it easier for creators to depend on the budget they already had set out, also adding a sense of urgency to motivate and persuade your community to help spread the word and rally behind that project. This all-or-nothing funding is very beneficial surpassed their crowdfunding goals with Kickstarter.
The platform currently supports and provides assistance to users ranging in languages from English to German, Japanese, French and even Spanish. The platform is currently aiming to expand to have a wider reach so it is able to help different users but they are currently opting out for the use of Google Translate to assist with any language barriers. This goes to show how flexible and caring the platform really. The company is very upfront about everything and they even have a thorough selection of frequently asked questions to assist with anything that you cannot find in writing and other areas of the website.
Tips For A Successful Kickstarter Campaign:
Offering great incentives on many different levels can make or break your campaign. The types of rewards of course will vary depend on what you’re fundraising for. It include a free copy of your product, or even collector’s edition versions.
Give Out Coupon Codes To Your Customers:
If you’re pulling your hair out trying to find freebies to give to your customers, maybe you can give them coupons. They cost nothing, and it saves them money.
And it doesn’t have to be coupons for your own products and services. If there’s something related, you could partner with them. If it’s a movie, for example, you could give a coupon code for Atom Tickets, for example. Or if your product is entrepreneurial in nature, you could give out a 0.99 linux plan coupon for a web hosting plan (web hosting is a huge expense for entrepreneurs!).
Embed Your Campaign on Your Blog:
If you have a website with any kind of audience, then you can expose them to your Kickstarter quite easily by embedding your campaign on the sidebar of your website. Copy the iframe code on your campaign’s page and add it to a widget on your WordPress website.
Are There any Refunds?
Kickstarter does not issue refunds because the company clearly states that transactions are only between the backers and the creators. Kickstarter never really has control of the funds at all in fact, the moment when the project is successfully funded, is the same exact time that the money is transferred from the donors’ card to the creator’s payment account. So it is up to the creator to issue a refund which is allowed through their payment of accounts whether its Amazon payments or like PayPal payment.
Is Kickstarter For Me?
Kickstarter does not guarantee projects because it is a very open platform dedicated to providing a wider range of opportunities for creators. Because, they are lenient on their projects that are allowed they are also more strict on pledges and creators that do not complete their work. Incomplete work, or breaking a pledge’s the promise is one of the reasons that the platform actually does not deduct any amount of money from your account until that creator has absolutely reached their goal. The company does actually do a quick review to ensure that the creator and project are in alignment with company policies. However, Kickstarter does not fully complete any investigations to figure out whether or not that specific creator able is personally able to complete the projects or not. It is completely up to the backers to decide what projects they do decide on what creations they would like to fund.
Creators are basically legally obligated to fulfill their promises of completion of their project. It states this in Kickstarter’s terms of use that creator is absolutely required to fulfill all of the rewards of their project or they must refund any backer whose reward they did not fulfill. This term and condition is displayed and shown to the creators before they launch their projects. This term was created to create legality for creators to be able to fund a project on this platform. This makes it easier for creators and backers in various ways. It is more so a motivational standpoint but it’s also providing elements of ambition, pushing creators harder towards their goals.
So this is one of the reasons that Kickstarter does not absolutely guarantee any projects. But, it does offer the guaranteed refund of money based on the kids have the conditions that are provided to creators when they start their projects Kickstarter has been working to increase results in approval accountability and fulfillment. They are starting to require all creators to provide an estimated delivery date for their creations. Which has really been beneficial towards reaching higher completion rates. This helps creators to develop a sense of time management, promoting consistency and accountability as well.