Want to crowdfund a dream project? Kickstarter may be the service for you. More than half a million projects have launched on Kickstarter, and more than a third of those have been successfully funded. Kickstarter is a great platform to promote and raise all-or-nothing funds for your projects, as it has a huge reach and numerous resources to help you create and promote campaigns. Due to its rigorous vetting system, step-by-step guidance, and detailed campaign tracking, Kickstarter flies high as an Editors’ Choice pick for crowdfunding services. Just be aware that Kickstarter has tighter restrictions than its competitors.
Fees, Restrictions, and Requirements
Like most crowdfunding sites, Kickstarter collects a percentage of the money you’ve raised. The company takes five percent of your funding total, while its payment partner, Stripe, charges another three to five percent, depending on the pledge amount. Project creators must be located in the US, Canada, Australia, or New Zealand (or from select Asian and European countries), but donors can pay via credit or debit card from anywhere in the world.
If your project doesn’t reach its funding goal, you pay zero fees and your would-be donors receive refunds. Kickstarter, unlike GoFundMe and Indiegogo, uses an all-or-nothing model; to receive your payment, your project must reach its monetary goal. Kickstarter states that you’ll receive your money approximately two weeks after a successful campaign ends.
Kickstarter restricts funding to creative projects, whether it’s a film, publication, gadget, or craft; the company doesn’t let you create a charity-based project. GoFundMe and Indiegogo each have a charity arm that lets you raise money for nonprofit organizations, and is subject to a different fee structure. Kickstarter creators must have a linked bank account and a valid credit or debit card.
Other restrictions include energy, food and drinks, anything claiming to cure, treat, or prevent illness, political fundraising, weapons, and drugs and related paraphernalia.
Creating a Fundraising Campaign
Setting up a campaign is easy. Kickstarter walks you through the entire process, offering advice and tips along the way. It’s easy to see and understand the rules, and learn which elements, such as an introduction video or images, aid in a successful project. You can login using Facebook credentials or create an account from scratch. Creators and backers alike can use Kickstarter on the web or on their Android and iOS mobile devices via apps.
Once you’ve signed up, you can explore existing projects or start your own in any of 15 categories, including crafts, comics, games, journalism, and technology. A helpful site tour lets you learn the Kickstarter process. In a nice touch, you can preview your campaign and share it with friends to get their feedback before the project goes live.
After you choose your category, you give the project a name and add an image, a blurb, and an optional sub-category. Kickstarter, like Indiegogo, has a risks and challenges section, where you outline possible stumbling blocks you may run into once you’re funded and how you are qualified to face them. This is a particularly important section, as even many “successful” Kickstarter darlings ultimately failed to live up to fan expectations. Once your project goes live, you can add a frequently asked questions section.
Your project must have a set funding duration, unlike Cameo and Patreon, which let you conduct ongoing fundraising, or GoFundMe, which doesn’t require a deadline. Kickstarter once offered a subscription alternative called Drip, but it’s been discontinued. You can either select the number of days or set a specific end date and time. Kickstarter recommends 30 or fewer days for the best success; you can’t change the duration once the project launches. Finally, you select a fundraising goal, which must include the money needed to complete the project and fulfill and ship the associated rewards.
Rewards are required for all projects and are a great way to attract donors. You can offer as many or as few as you want, based on the amounts pledged by your backers (you can limit the quantity of each reward). For instance, you can offer stickers for $10 pledges and a signed poster to the first 10 people who make $100 pledges. Rewards can’t be alcohol, travel services, or resales, and they must be produced or designed by creators. (Sorry, you can’t unload your junk.) In fact, Kickstarter will send you an alert if you complete the reward description with a phrase that raises a red flag (such as beer glass).
You must verify your Kickstarter account by email and by either text message or automated phone call. After that, you verify your identity by providing your legal name, date of birth, address, and the last four digits of your social security number. This differs from GoFundMe, which asks for your entire SSN and could put you at risk for fraud or identity theft if there’s ever a security breach. Then you select the money’s destination, either to an individual or a legal entity, and provide the bank account details for the transfer. Finally, you add a payment source in case one of your backers disputes a credit card charge. Kickstarter will try to resolve the dispute on your behalf, but if the case is lost, your card will be charged.
Tracking and Promoting Your Campaign
Once you’re satisfied with your campaign, you can either submit it for feedback or launch it right away. Kickstarter uses an algorithm to check that your project is compliant with its regulations. If any red flags come up, Kickstarter manually reviews your project and provides feedback. This process can take up to three business days. If you’re lucky, you may appear in Kickstarter’s curated “Projects We Love” showcase, which the company heavily promotes.
Kickstarter makes it easy to track your pledges and backer rewards, and you can link your Google Analytics account to see even more detail. Your dashboard contains a referral report that shows how your backers found your project, so you can track the success of social media and other promotions. You can also see how many people are watching your project video. Finally, you also get a backer report, so you can view individual pledges and request any additional information you need in order to fulfill rewards. There’s also a handy survey tool that lets you collect mailing addresses and other backer information.
For the Committed Creator
Kickstarter is a discerning crowdfunding service. While GoFundMe, Indiegogo, and other rival services offer more flexibility—no minimum funding, no deadlines, and fewer campaign restrictions—Kickstarter has a strong vetting process and a wide reach. Potential donors know that they’ll be refunded if a project doesn’t reach its goal, which is attractive and could potentially encourage more contributions. If you’re serious about finishing a project and willing to risk missing your goal, Kickstarter is a great choice an Editors’ Choice pick for crowdsourcing services. If you want fans to fund your project via subscription, turn to Patreon, our other Editors’ Choice recommendation.
