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How does Kickstarter & GadgetAny funding works?

By Guardian Nigeria
18 January 2023   |   1:36 am
Kickstarter and Gadgetany both are well-known crowdfunding platforms which deal in reward-based funding.

Kickstarter and Gadgetany both are well-known crowdfunding platforms which deal in reward-based funding. Kickstarter is a multi-niche platform whereas GadgetAny is solely a tech speacilized platform. Here, in this article, we will shed some light on the funding functionalities of kickstarter and GadgetAny.

Kickstarter

Kickstarter is a globally recognized crowdfunding platform. It specializes in creative projects ranging from films, music, stage shows, comics, journalism, video games, board games, technology, publishing, to food-related projects.

How does it work?

1. Draft a project that tells your story.

Share your creative project concept. Choose a funding goal and a campaign duration of 1 to 60 days. Create rewards that backers will receive once your project is completed.

2. Connect with your community to reach your goal.

Invite your friends, family, and fans to help you with your project. Kickstarter’s all-or-nothing funding model guarantees that if you meet or exceed your goal, you will receive your funds minus its 5% platform fee.

3. Make your work, share it with your backers.
After a successful campaign, you will receive your funds within two to three weeks. Then it’s time to finish your project and fulfill your backers’ rewards.

What can I use Kickstarter to fund for?

Kickstarter is a crowdfunding platform for creative projects in a large number of categories, like: Art, Comics, Crafts, Dance, Design, Fashion, Film & Video, Food, Games, Journalism, Music, Photography, Publishing, Technology, and Theater. Create an album, a book, an immersive theater experience, a film score — you name it.

Who can I get pledges from?
Every week, Kickstarter facilitates the launch of a number of projects. However, support always begins with your relatives, friends, and close family members. They are the first ones to convert into backers. Moreover, they play a major role in spreading the word regarding your project.

How much work is it to run a project?
Every Kickstarter project has a different journey from the other but it’s the project size and complexity that determines the amount of your workload.

It is quite natural to be very busy in the first few days after the launch as you make the community aware of your project, answer questions from potential backers, and more. To reach your funding goal, you may need to spend the last few days seeking support for your project across different social networks.

When projects take centerstage, you should expect to spend more time creating and offering rewards.


Why Kickstarter?

1. Kickstarter is a genuine platform for creative projects – Kickstarter was created as a platform for artists, musicians, designers, makers, and other creative individuals all over the globe. It has collected over $4.5 billion from backers so far, which speaks volume of its achievements as one of the leading fundraisers.

2. All-or-nothing funding works model – The all-or-nothing funding works model of Kickstarter allows you to select a funding goal and set a deadline to meet that goal. The best thing with this model is you won’t get stuck with an inadequate amount of funds to complete your project. As the backers will get their pledge amount back if the funding goal is not met, this model encourages backers to pledge money.

3. Every backer is eligible for a reward –
Kickstarter adopts a policy that makes creators offer some sort of reward to all the backers. While pledging amount to the campaign, they choose one of the prearranged awards the creators offer. However, Kickstarter has left some wiggle room for the backers in this regard as they can also contribute a small amount without an award. And this option is called “Back it because you believe in it.”

4. Wide community base – Being a pioneer crowdfunding website, Kickstarter enjoys a wider community base. Due to its mass support of backers it has played a major role in making some campaigns top the chart and attract global recognition. For example, with 62,642 backers, it exceeded its original goal of $50,000 to make around $13,285,226. Another mega-successful project named ‘Potato Salad’ went on raising an enormous $55,000 despite setting originally a goal of only $10 to make a potato salad.

What are the charges?

If a project is successfully funded, Kickstarter takes a 5% platform fee of the funds raised for the creators. It uses Stripe, a payment processing platform, to facilitate its payment, which also charges transaction fees (approximately 3-5%). No amount changes hands if a project does not reach its funding goal.

GadgetAny
GadgetAny is a community of more than 100,000 hard core tech geeks. You can use GadgetAny to launch your campaign to a large number of people who are interested in your tech category only. Also, GadgetAny boasts about multiplying the number of backers within a very short span of time on the back of its large pool of tech-loving community members.

Who can use Gadgetany?

Gadgetany is looking for global backers. Anyone with a major credit or debit card from anywhere in the world can contribute to a project.

Individuals in the United States, United Kingdom, Canada, Denmark, Australia, New Zealand, the Netherlands, Ireland, India, Norway, Sweden, Germany, Austria, France, Spain, Italy, Belgium, Hong Kong, Switzerland, Luxembourg, Mexico, Singapore, and Japan who meet the following criteria can now create projects:

  • You are at least 18 years old.
  • You are a permanent resident of one of the eligible countries listed above.
  • You are developing a project in your own name or on behalf of a registered legal entity with which you are associated.
  • You have a physical address, a bank account, and a government-issued ID in the country where you are working on a project.**
  • If you are running your project on your own, the linked bank account must belong to the person who verified their identity for your project.
  • You’ve got a major credit or debit card.***

People under the age of 18 can only start projects in collaboration with an adult or guardian who meets the above-mentioned criteria. The adult must verify their identity, provide their banking information in the project build, and assume the responsibilities for the project listed in our Terms of Use.

What should you consider when setting your funding goal?

Before launching a project, GadgetAny encourages creators to conduct research and analysis to determine the costs involved. Your funding goal should include the amount required to complete your project (including manufacturing costs and shipping rewards) as well as the fees associated with running a project on Gadgetany. You are not permitted to change your funding goal or deadline once your project has been launched.

It will assist you in developing a rough estimate of all the materials, resources, and costs (such as shipping costs) that you will require to complete your project, as well as the estimated costs for each. Consider the expense and how it affects your expenses after making some minor changes, such as switching suppliers or from fulfillment partners (it is always wise to have a backup plan). Keep in mind that any additional shipping costs will be reflected in your funding total while your project is active.

What details should you share on your project page?

Backers should understand the following after visiting your project page:

  • What are you attempting to create? How do you intend to make your project a reality?
  • Tell us about your experience. Tell your backers why you are on GadgetAny.
  • The progress you’ve made thus far. What stage is your project in?
  • Your budget and how you intend to allocate it

More detailed information about your project will increase your backers’ confidence in pledging to your campaign.

What are the things you should do before launching your project?

Running a project on GadgetAny is a lot of fun, but it’s important to remember that for a project to be successful, a lot of coordination is required. So, before you launch, make certain that you and your project are completely prepared. To help ensure that you’re ready to go,

Below are ten tips and resources.

  • Create a detailed budget of your costs (prototyping, production, shipping, etc.) and use it to determine your funding target.
  • But don’t forget to leave some wiggle room!
  • Create your reward tiers. What kinds of incentives might be appealing to your community?
  • Consider your project page; is it ready for launch?
  • Ensure that your project page is truthful and well-presented.
  • Using our project preview tool, share your project draft with your friends and family for pre-launch feedback.
  • Create a list! With whom will you share your project in your community?
  • And make a strategy for spreading the word.


What are the platform fees?

GadgetAny doesn’t charge any platform fee however it has a plan structure for other services.

How do I start a project?

Anyone who meets the creators’ requirements can start a campaign on Gadgetany.
Simply go to its starting page to begin building your project. You can go through the following steps to launch a project on GadgetAny:

1. Sign up on GadgetAny, and fill up your profile with the needed info
2. Go to start a project > complete the instructions and upload the product details as mentioned which is a 5-step process. (This will take around 30 min)
3. Click on submit for review to send it to the backend team to get approval
4. After approval, your campaign will be live on the website and open for backers to attract funds

Thus, funding models of crowdfunding platforms vary depending on their process and niches. As we know, Kickstarter works on an All or Nothing funding model. But one thing is common among premier crowdfunding platforms, like Kickstarter, Indiegogo, or GadgetAny. All of these platforms follow the reward-based model. In this model, backers raise money for projects and causes. When you launch a campaign on these platforms, you set a funding goal with a deadline. If you are able to meet your funding goal by the deadline, you keep the raised amount. If you don’t reach your funding goal, you don’t get any of the money.

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