KickStarter: The Science of Crowdfunding (Infographic)

document Crowdfunding, Distributed Knowledge

KickStarter:

The

Science

of

Crowdfunding (Infographic)
Written on January 17, 2011 at 5:07 am by Amy January 17, 2011 By the ZippyCart Shopping Cart Reviews Content Team

There are many ways to make money online, but KickStarter has found a unique way to make money that also helps others flourish. If you‟re not already familiar with KickStarter, this

infographic on the left does a good job of explaining exactly how KickStarter works. What‟s important to note is that KickStarter utilizes a method of making money online called Crowdfunding. Crowdfunding relies on large numbers of small donations from a community of supporters. While these donations may not make up for much from just a few people, if hundreds or even thousands of people donate, they can add up quickly. While the idea of crowdfunding began in the late 90′s, the term “crowdfunding” was coined by a Michael Sullivan of fundavlog, who stated that “Many things are important factors, but funding from the „crowd‟ is the base of which all else depends on and is built on. So, Crowdfunding is an accurate term to help me explain this core element of fundavlog.” Throughout the years, there have been similar methods of funding including Micropatronage (one blog relying on donations from readers to keep going), crowd sourcing, and crowd source capital. With KickStarter though, crowdfunding is pretty unique. This is because funding on KickStarter requires a minimum threshold. In other words, users searching for funding from a KickStarter campaign have to meet a minimum goal in order to

get the money donated to their campaign. If the minimum threshold isn‟t met, then supporters don‟t get charged and nobody makes money. Those who do meet their goal, gain the money needed to begin or complete the project they are campaigning for while KickStarter makes 5% of all donations (which ends up being millions). Some of the most successful campaigns on KickStarter show exactly why it provides a win-win situation for making money online:
TikTok+LunaTik watch kits – Turn an iPod nano into a multitouch watch. They requested $15,000 and raised $941,718 which was 6283% more than anticipated. Blue Like Jazz (the movie): Filmmaker Steve Taylor requested $125,000 and made $345,992 which was 276% more than requested. Diaspora: Filmmakers raised $200,641 which was 2006% more than their initial request for $10,000. Glif: An iPhone 4 Tripod Mount & Stand – Creators Tom Gerhardt and Dan Provost raised $134,417 which was 1378% more than their goal of $9750. Lockpicks by Open Locksport: Creator Schuyler Towne raised $87,407 and asked for $6,000, making 1456% more than requested.

Summary An article and an infographic about KickStarter, procedures for joining as well as its most successful crowdfunding projects, such as the following:

1. TikTok+LunaTik watch kits
2. Blue Like Jazz (the movie)
3. Diaspora
4. Glif
5. Lockpicks by Open Locksport

Description Crowdfunding is unique because KickStarter requires a minimum threshold. In other words, users searching for funding from a KickStarter campaign have to meet a minimum goal in order to get the money donated to their campaign. If the minimum threshold isn’t met, then supporters don’t get charged and nobody makes money.

Tags: Crowdfunding, Crowdsourcing, Kickstarter, micropatronage

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