Bucky Wucky does have sponsors, and we may work with companies to provide you with the best content, information, and data on business and personal finance. Some links on our site may be affiliate links. While our sponsors may pay us, we only work with companies that align with Bucky Wucky’s values.
Review Of Kickstarter
Kickstarter is the epitome of what makes the internet so attractive. Amidst the endless memes and useless information lies a wealth of money-making possibilities. No longer do you need to have years of education and experience to make a living.
Thanks to Kickstarter, just about anyone can present an idea to the masses in the hopes of securing funding for their next get-rich-quick venture. However, there are some guidelines that creators must adhere to, lest they risk losing out on their chances of seeing their projects come to fruition.
If you’re interested in this crowdfunding service to help foot the bill on your creation, you’re going to want to stick around to see if Kickstarter funding is right for you.
Onto our review of Kickstarter!
What Is Kickstarter?
Centered entirely on crowdfunding, creators can start a Kickstarter campaign to receive donations from interested parties. These donations are then to be used toward making a vision a reality.
To date, Kickstarter funding has surpassed an impressive $5 billion. That equates to more than 18 million backers successfully financing well over 184,000 unique projects.
Similar to how Nintendo was once synonymous with video games, the same is now true for Kickstarter and crowdfunding. And interestingly enough, Kickstarter has helped many video games get off the ground.
From a Kickstarter wallet to Kickstarter board games, there is no denying how much this online entity has benefited creations that wouldn’t have otherwise seen the light of day. Or at least, not as quickly or as easily.
So, what if you have an amazing idea that you want to share with the world? Are there any requirements for using Kickstarter and getting funded? Is Kickstarter safe? Let’s explore.
If you peruse Kickstarter’s website, you’ll find that there are some guidelines in place that creators must follow in order to be eligible for funding. One of the most important fundamentals of Kickstarter is that creators must be working toward a project that will eventually be shared with consumers.
As such, you can’t just jump on and say you need funding to build yourself a rocket ship. With that being said, if your rocket ship were to become available for public rides around the planet, you might be in business.
Projects must also provide complete transparency and honesty. Kickstarter also requires that prototypes be presented if applicable. You can’t use doctored images or lead others to believe a product is ready when it isn’t. What’s more, you will need to demonstrate your product at some point to show those backing you that work is progressing as intended.
It’s important to note that while using Kickstarter for business purposes can be a great thing for your brand, charities are prohibited. Non-profits are certainly welcome, but you can’t crowdfund money for a cause or charity.
Kickstarter does have its limitations on what creators can offer. For example, medicines, racy material, weapons, and other restrictions are in place to ensure the integrity of the platform.
How Does Kickstarter Work?
In short, Kickstarter consists of creators and backers. Creators are those who have an idea that needs funding, while backers are those who donate the actual funds.
For a creator to get started, they must first set up a webpage via Kickstarter that displays their project and intentions. Some Kickstarter pages begin as only text and photos. But as the project advances, more information and data are provided for backers to see.
When a creator starts a page, they will need to establish a funding goal for their project, as well as a deadline for funds to be met. Creators are also responsible for setting up different reward levels. These are used to give backers incentive for pledging specific amounts of money.
If the creator is able to secure their funding goal within the set amount of time, they can then proceed with developing their project. Development time can take months to complete depending on its complexity and scale.
It should be noted, too, that creators are not allowed to give backers any stake in their business. This is another one of Kickstarter’s terms, which expressly prohibits equity. Kickstarter is not an investment resource.
What Are Kickstarter Stretch Goals?
Sometimes, creators will introduce unofficial goals after their original funding goal has been reached. In doing this, new rewards will be offered to backers in an attempt to raise more capital for the creator’s project.
Kickstarter Fees & Pricing
Kickstarter has a straightforward pricing structure in place. If you start a project that ultimately reaches its funding goal, Kickstarter gets 5% of the total amount of the funds raised.
Furthermore, you will be charged a payment processing fee that ranges from 3% to 5%. Additionally, $0.20 will be deducted from every pledge. However, pledges that are less than $10 are only deducted $0.05 from every pledge*.
And if your project doesn’t reach its funding goal, you don’t have to worry about paying anything to Kickstarter.
- 5% of funds raised
- Processing fees (3-5%)
- $0.20 per pledge*
Trustpilot currently lists Kickstarter with a bad rating based on 336 reviews. And although Kickstarter is not BBB-Accredited, the Better Business Bureau rates them at an A-. It’s worth mentioning that the majority of Kickstarter’s poor reviews are centered on backers getting burned by dishonest creators, which is an unfortunate potentiality.
Kickstarter Pros & Cons
Like anything, Kickstarter has its pros and cons. Below are some of the most prominent.
- Education Opportunities. The information that Kickstarter provides users can help get you smart on topics related to crowdfunding.
- The most popular and widely-used crowdfunding service for businesses and creators.
- An excellent resource for larger business entities.
- Respectable fees.
- If you don’t reach your funding goal, you won’t see a dime of financing.
- Not every proposal is accepted.
- Customer support is limited.
If you’d rather try your hand elsewhere, there are several alternatives to Kickstarter that are worthy of your consideration, including:
When looking at Kickstarter vs Indiegogo, for example, you may wish to choose the latter if you need help marketing your project. Indiegogo can also assist you in getting licensed, distributing your product, and more.
Whereas Kickstarter is solely there to help you secure funding, Indiegogo offers services that are designed to bring your brand to market.
Final Thoughts: Kickstarter Review
Is Kickstarter legit? Look at it this way: There are always going to be unscrupulous people out there who take advantage of a helping hand.
Bad reviews aside, Kickstarter is an easy-to-use crowdfunding platform that has helped tens of thousands of creators. And with the Kickstarter app, making your dream a reality has never been easier.
Learn More About Kickstarter
Check out the crowdfunding platform to see if it is a good fit for your fundraising needs
Enjoyed our review of Kickstarter?
You may also be interested in Bill.com Review.