What is Kickstarter?
Kickstarter was established in New York, the USA in April 2009. It is a crowdfunding website platform designed to raise funds for companies with creative solutions. Kickstarter is the first thing that comes to mind when it comes to crowdfunding. The site collects funds for the release of gadgets, the publication of books and comics, the filming of independent films, and many other projects of various categories.
For a small company or startup, Kickstarter can be a great source of investment and a way to grow your audience. The main thing is to set a clear goal and prepare for the campaign in advance.
Who can start a Kickstarter project?
Kickstarter projects can be started by both individuals and businesses. There are restrictions on the countries on the site. You cannot open a project directly from Russia. You can register your legal entity in any country with which Kickstarter is an affiliate. If you want to visits Kickstarter official website then click here.
We, like most startups, are registered as CC Corporation in Delaware, USA. It will arrive in 15 minutes. However, in this case, you are a person with a US SSN (Social Security Number, analog is SNILS), so your residence permit or citizenship must be submitted on Kickstarter. I found a friend who helped me in America.
Which project is right for Kickstarter?
There are no practical restrictions on the project title (except for the list of prohibited items (drugs, weapons and their dummies, alcohol, etc.)), but you need to remember the site audience and project details and rewards. I have. Projects can be divided into eight categories:
- Comics & Illustration;
- Design & Tech;
- Food & Craft;
There are a lot of geeks on Kickstarter who interest in trying new things, so this site is a great place to raise money for the release of the latest devices. Also, the site has a lot of DIY enthusiasts, which makes it more likely to be a food and craft category project.
What do I need to prepare for my Kickstarter project?
By the time the campaign starts, the project should be in the final stages. For devices, you need to create a working prototype and production plans, such as layouts and illustrations, for books and manga so that you can start production immediately after the campaign ends.
You need to calculate the risk-the entire section is devoted to the description of the project page-and think about ways to prevent the risk and eliminate any problems that arise. For example, a shortage of chips can delay device manufacturing times or publish applications raw.
The risk section of the project page should explain in detail and accessible ways how you insured. We have selected the most reliable factories, experienced developers, etc., so it is very important to think in a hurry. Be careful about everything, or you risk losing a lot of money by accumulating too many negatives from your supporters or correcting your mistakes.
Marketing and PR strategies, content projects are less important. A successful project page on Kickstarter looks like a landing page. Texts, illustrations, photos, and videos. In addition, social network pages, newsletters, Kickstarter blogs, media posts, targeted and content targeted advertising, and cross-promotion with partners.
Step-by-step instructions and preparation for the launch
- Understand the limitations of the site: is it suitable for the project, whether it is necessary to register a company abroad.
- Prepare marketing and PR strategies. Study the landing pages of successful campaigns, try to collect as much information as possible that you can give users. Tell journalists and bloggers about the product.
- Calculate project economics and risks.
- Conclude contracts with manufacturers, carry out design for manufacture (DFM) – prepare a prototype for mass production, the so-called golden sample.
- Prepare content and form a community.
Forming of budget
To set your budget correctly and set your campaign goals, you need to agree with the manufacturer in advance to determine the minimum batch size possible. It is also important to calculate the cost of the product. This includes logistics, marketing, salaries, and other costs in addition to production.
In our case, it included templates for test equipment and casting equipment cases. If you plan to sell a portion of the batch to a retailer, please provide funding. Remember that part of the party goes to the wedding. 5 takes a Kickstarter and the other 3-5 receive payments from the middle bar.
On the project page, tell the backup where the funds are going. For example, 30 Sara for electronics, 30 for salary, 10 for housing, 10 for housing, 20 for logistics, and so on, this pie chart format looks like this:
Benefits of a Kickstarter project
A successful campaign provides a good experience and many benefits:
- Investing in such volumes that, as a rule, cannot obtain from a venture capital fund for a hardware project. A successful campaign will show investors and partners that the product is in demand.
- A loyal community that will stay with you for a long time and will guide, criticize, and supports you.
- Product reviews that will help win over future partners and customers.
- Not spending enough time preparing for the campaign. If this is your first Kickstarter campaign, it’s best to start 9-12 months in advance.
- Lack of marketing and PR strategies.
- Lack of transparency. Backers need to understand where the money is going, at what stage the product is, etc.
- There is no local community.
- The timing of the release of the product is poorly calculated. You need to launch a campaign already having a prototype, contracts with manufacturers, and all the necessary documentation.
- An attempt to do everything with your own hands. The cost of a mistake can be high, so sometimes it is better to resort to the help of consultants, marketing agencies and use paid services. Feel free to ask other teams or more experienced colleagues for help – this is an open community that will always provide valuable advice.
- In parallel, run an Indiegogo campaign or come to Kickstarter after its completion. Kickstarter is important for them to have their first campaign. But after them, you can launch an Indiegogo campaign, and that’s what we did. This is a good life hack to gather an audience there, and then bring it to your site.