How Does Kickstarter Make Money – Kickstarter’s goal is to help bring creative ideas to reality, not only for art world elites but also for individuals without a creative experience, by enabling projects in various categories such as Art, Design, Journalism, Photography, and Theater. Each Kickstarter project has a specific objective, such as recording an album or publishing a book, and the artist retains complete control of their work. Since the site’s inception in 2009, 18 million individuals have donated more than $4.9 billion to over 180,000 Kickstarter projects.
Perry Chen came up with the concept of Kickstarter after a concert that was canceled due to financial constraints. He was residing in late 2001 in New Orleans and supporting himself as a musician at the time. He intended to bring down the DJ duo Kruder & Dorfmeister for a performance at the 2002 Jazz Fest and had everything planned – he had chosen an excellent venue and contacted their management. Still, the event never went place at a prohibitively high cost.
This sparked Chen’s concept for a platform where fans could donate money if they showed a sufficient level of enthusiasm in a specific project and would get incentives for their efforts. However, Chen did not immediately begin developing the concept since he was preoccupied with creating music.
Kickstarter, a business crowdfunding website established in 2009, has facilitated over 150,000 companies and projects totaling $4 billion. Small companies that succeed on Kickstarter often develop a devoted client base and get favorable social media and newspaper attention. And, unlike a company loan, the funds raised via Kickstarter are entirely yours to retain.
Kickstarter may be an excellent venue for small company owners to share an intriguing idea and engaging narrative. If you want your Kickstarter campaign to be successful, you must put time and money into it and plan carefully.
The reality is that only around 37% of entrepreneurs who launch a Kickstarter campaign succeed in reaching their fundraising target. Learn how to distinguish yourself and join the ranks of successful Kickstarter campaigns by reading this tutorial.
Chen returned to New York City in 2005, where he met Yancey Strickler, who became a friend and assisted him in brainstorming for the site’s preliminary design. They subsequently met Charles Adler, who joined them in their quest, and after months of cooperation, they arrived at wireframes and specs for the site.