How to Use Kickstarter to Make Money Online: A Complete Guide

Kickstarter has become a game-changer in the world of online fundraising, offering creators a platform to bring their ideas to life. This crowdfunding giant has helped launch countless projects, from innovative gadgets to blockbuster board games, by connecting passionate creators with eager backers. For entrepreneurs and creatives looking to make money online, Kickstarter presents a unique opportunity to showcase their products and secure funding before production even begins.

This guide will walk you through the process of using Kickstarter to make money online. We’ll explore the power of crowdfunding, how to prepare your project, and create a compelling campaign. You’ll learn about setting up a solid funding strategy, designing irresistible rewards, and managing your campaign from launch to completion. We’ll also cover post-campaign success strategies to help you turn your Kickstarter victory into a sustainable business venture. Whether you’re a first-time creator or a seasoned entrepreneur, this comprehensive guide will equip you with the knowledge to make the most of this powerful funding platform.

The Power of Crowdfunding on Kickstarter

Kickstarter’s Popularity

Kickstarter has become a powerhouse in the world of crowdfunding, particularly for creative projects. As the largest platform of its kind, it has helped bring countless ideas to life, ranging from art and music to technology and games ^[1]. The platform’s popularity stems from its unique approach to funding, which puts creators and their communities at the center of the process.

One of the key factors contributing to Kickstarter’s success is its vast and diverse user base. Over 23 million people from every continent on Earth have supported Kickstarter projects ^[1]. This global reach provides creators with access to a massive pool of potential backers, increasing their chances of success.

Kickstarter’s all-or-nothing funding model sets it apart from other platforms. If a project doesn’t reach its funding goal within the designated timeline, no funds are collected ^[2]. While this might seem risky, it actually benefits both creators and backers by ensuring that projects have the necessary resources to deliver on their promises.

Success Stories

Kickstarter has been the launchpad for numerous remarkable success stories, demonstrating its potential to transform ideas into reality. Here are a few notable examples:

1. Critical Role: This popular Dungeons & Dragons Twitch group ran Kickstarter’s most-funded film project ever. Initially aiming for $750,000 to create a single animated short film, they ultimately raised an astounding $11.4 million. This success led to a full season of 10 episodes, caught Amazon Prime Video’s attention, and resulted in additional episodes and a second season .
2. Exploding Kittens: This card game, co-created by internet cartoonist Matthew Inman, became the fastest-funded Kickstarter project at the time of its launch in 2015 .
3. Pebble Time: This smartwatch campaign holds the record for the most funded Kickstarter campaign of all time, raising an impressive $20,338,986 ^[4].
4. COOLEST COOLER: This innovative cooler, which includes features like a built-in Bluetooth speaker and USB charger, raised $13,285,226, exceeding its goal by 26,570% ^[4].

Potential for Creators

Kickstarter offers immense potential for creators looking to bring their ideas to life. The platform provides a unique opportunity to connect directly with audiences, bypassing traditional gatekeepers in industries like publishing, film, and technology ^[1]. This direct connection allows creators to maintain control over their work without compromising their vision.

For content creators, Kickstarter can be a powerful tool to mobilize their existing fan base and attract new supporters. Take the case of Chris Brantley, an animator YouTuber who launched a successful campaign for his tabletop game “Fool’s Blade.” Starting with a modest goal, the campaign ultimately raised $729,197 from 11,779 backers, demonstrating the platform’s ability to engage both existing fans and new audiences .

Kickstarter also offers creators the chance to gage market interest before investing significant resources into production. This can be particularly valuable for innovative or niche products that might struggle to secure traditional funding.

However, it’s important to note that success on Kickstarter isn’t guaranteed. Only about 65% of projects on the platform get fully funded within their campaign timeline ^[2]. This underscores the importance of careful planning, effective marketing, and a compelling project pitch to maximize the chances of success.

As the creator economy continues to grow, with projections suggesting it could double from its current $250 billion value, Kickstarter remains a vital platform for creators to bring their visions to life and connect with supportive communities .

Preparing Your Kickstarter Project

Preparing a Kickstarter project is an exciting journey that requires careful planning and strategic thinking. This process involves developing your idea, conducting thorough market research, and building a prototype. By following these steps, creators can increase their chances of success on the platform.

Developing Your Idea

The first step in preparing a Kickstarter project is to develop a compelling idea. Creators should start by creating a running list of ideas, using tools like Trello to organize their thoughts and collaborate with team members ^[1]. This approach allows for easy access to notes from anywhere and at any time.

When developing an idea, it’s crucial to consider how it aligns with Kickstarter’s focus on creative projects. The platform is specifically designed for projects in categories such as Art, Comics, Crafts, Dance, Design, Fashion, Film & Video, Food, Games, Journalism, Music, Photography, Publishing, Technology, and Theater ^[2]. Creators should ensure their project fits within these categories and embodies the creative spirit that Kickstarter promotes.

Market Research

Thorough market research is essential for understanding the landscape of the industry and identifying potential opportunities. This process involves several key steps:

1. Study similar projects: Creators should extensively research other Kickstarter projects, particularly those in their project’s category. This research should extend beyond their immediate field to gain insights from different types of creative endeavors ^[1].
2. Analyze successful campaigns: It’s beneficial to create a spreadsheet charting similarities and differences between successful projects in the same category. This approach helps identify patterns and inform decisions about reward levels and stretch goals ^[1].
3. Participate in the Kickstarter community: Engaging with other projects by backing them and participating in discussions can provide valuable insights into backer behavior and preferences ^[1].
4. Utilize research tools: Platforms like Brandwatch or Sprout Social can be used to track conversations around the industry and competitor products on social media .
5. Explore industry publications: Relevant blogs, websites, and publications can offer insights into trends and competitor activities .

When conducting market research, creators should ask themselves key questions:

• How much are similar projects raising successfully?
• What do backers find valuable based on competitor offerings?
• What unique value proposition sets their project apart?

Building a Prototype

Building a prototype is a crucial step in bringing a project to life and demonstrating its feasibility to potential backers. While the specific process may vary depending on the nature of the project, there are some general guidelines to consider:

1. Start with a basic version: Begin with a simple prototype that demonstrates the core functionality or concept of the project.
2. Iterate and improve: Based on feedback and testing, refine the prototype to better align with the project’s goals and backer expectations.
3. Document the process: Share the prototype development journey with potential backers through updates and behind-the-scenes content. This can help build anticipation and demonstrate the project’s progress .
4. Consider manufacturing: For physical products, research potential manufacturing partners and costs to ensure the project’s feasibility ^[4].

By thoroughly preparing their Kickstarter project through idea development, market research, and prototype building, creators can position themselves for success on the platform. This preparation not only helps in crafting a compelling campaign but also in building a community around the project, which is crucial for long-term success ^[5].

Creating a Compelling Kickstarter Campaign

Crafting Your Story

Creating a compelling Kickstarter campaign begins with crafting a powerful story. The project description serves as the foundation of the campaign, clearly explaining the project’s purpose, uniqueness, and why people should back it ^[1]. Creators should approach this as if they’re explaining their project to a friend, considering what questions might arise and how to demonstrate their seriousness and capability ^[2].

To create an engaging narrative, creators should:

1. Introduce themselves and their team, showcasing any relevant previous work.
2. Explain the project’s origin and development process.
3. Provide a clear, specific timeline for what backers can expect.
4. Break down the budget to demonstrate thoughtful planning.
5. Share their passion and commitment to the project ^[2].

Kickstarter allows up to 60 characters for the project title and 135 for the subtitle, providing ample space to capture attention when used wisely . It’s crucial to open with a succinct summary sentence or paragraph, ensuring potential backers understand the project immediately .

Producing an Engaging Video

A compelling video is essential for a successful Kickstarter campaign. It serves as a powerful tool to showcase the project, explain the idea, demonstrate features, and persuade potential backers to invest . Kickstarter data shows that about 50% of backers stop watching project videos after the first minute, with the rest dropping off by the end of the second. Therefore, it’s crucial to keep videos short and engaging .

Key elements of an effective Kickstarter video include:

1. Telling a compelling story that connects with the audience.
2. Showing the product in action through live footage or animations.
3. Including a strong, direct call to action ^[4].

The video creation process begins with pre-production, involving research, outlining, budgeting, script writing, and storyboarding ^[5]. Creators should identify the video’s purpose, target audience, and desired takeaway before filming begins ^[5].

When producing the video, consider:

1. Choosing the right video style to convey the appropriate mood and esthetics.
2. Using proper lighting to set the tone for each scene.
3. Ensuring high-quality audio with background noise reduction and consistent levels.
4. Employing various camera angles to convey emotion and maintain engagement ^[5].

Writing a Persuasive Project Description

The project description should be visually appealing and engaging to attract potential backers. Use high-quality images, videos, and graphics to showcase the project and capture visitors’ attention ^[1]. Remember that the internet is a visual medium, so include plenty of images and photos to break up text. If visuals are lacking, use graphic headers, bulleted lists, and other textual flourishes to make the page dynamic .

To create a persuasive project description:

1. Highlight the problem the project solves and the benefits it offers.
2. Provide detailed information about the project’s concept, development, and feasibility.
3. Support claims with data, prototypes, or previous accomplishments to enhance credibility ^[1].

Creators should also fill out their profile with links to websites and social accounts, and include these in the campaign story. This should be done for all collaborators and contributors as well, allowing backers to find and follow them .

Rewards are an essential part of any Kickstarter campaign. They should be attractive, relevant to the project, and offered at different tiers to accommodate various budgets. Be creative when designing rewards and ensure they are clearly presented and explained on the campaign page ^[1].

By focusing on these key elements – crafting a compelling story, producing an engaging video, and writing a persuasive project description – creators can significantly increase their chances of running a successful Kickstarter campaign and bringing their ideas to life.

Setting Up Your Funding Strategy

Calculating Costs

Setting up a successful Kickstarter campaign begins with a thorough calculation of costs. This process involves listing out all anticipated expenses in a spreadsheet, including development, launch, marketing, and delivery costs ^[1]. It’s crucial to research and obtain accurate pricing estimates for each task, as cutting corners or making up numbers can lead to problems later ^[1].

When calculating costs, creators should consider:

1. Production expenses (materials, manufacturing)
2. Shipping and packaging
3. Marketing and promotion
4. Platform fees and payment processing
5. Taxes
6. Unexpected expenses (add a buffer)

Shipping costs often surprise creators, as they tend to be more expensive than anticipated and increase every 6-12 months ^[2]. It’s essential to factor in packaging, handling fees, and postage when estimating shipping costs .

Determining Your Funding Goal

The funding goal should be based on the actual costs required to bring the project to life, including a buffer for unexpected expenses ^[1]. Kickstarter uses an all-or-nothing funding model, meaning that if a campaign doesn’t reach its goal, no funds are collected . This makes setting the right funding goal critical for success.

When determining the funding goal, creators should consider:

1. The minimum amount needed to complete the project
2. Platform fees (Kickstarter charges a 5% fee on the total funds collected)
3. Payment processing fees (roughly 3-5% charged by Stripe)
4. Potential taxes (consult with a tax advisor for specific guidance)

It’s important to strike a balance between setting a goal that’s achievable and one that covers all necessary expenses. Setting a low goal that doesn’t meet funding needs can be disastrous, while an overly ambitious goal may be harder to reach ^[1].

Creating a Budget

Creating a comprehensive budget is crucial for a successful Kickstarter campaign. A well-planned budget serves as a roadmap for the project and helps ensure all costs are accounted for.

Steps to create an effective budget:

1. List all tasks and associated expenses in a spreadsheet ^[1]
2. Research and obtain quotes for various production quantities to determine the optimal manufacturing scale
3. Factor in shipping costs, including packaging and handling fees
4. Include marketing expenses, which can vary widely depending on the chosen strategies ^[2]
5. Account for platform fees and payment processing costs
6. Add a contingency fund for unexpected expenses (typically 10-20% of the total budget)

Creators should remember that a budget is a living document that may evolve as the project develops ^[2]. It’s essential to review and update the budget regularly throughout the campaign process.

Kickstarter offers a Funding Calculator tool that can help creators visualize potential costs, including fees and taxes . This tool can be accessed via the Funding tab of the project editor and can assist in setting an appropriate funding goal .

By carefully calculating costs, determining a realistic funding goal, and creating a comprehensive budget, creators can set themselves up for success on Kickstarter. This strategic approach not only increases the chances of reaching the funding goal but also ensures that the project can be completed and rewards fulfilled if the campaign is successful.

Designing Irresistible Rewards

Understanding Backer Motivations

Designing irresistible rewards begins with understanding what motivates backers to support Kickstarter projects. Backers are driven by more than just the desire to obtain a product; they want to be part of something special. They seek to support passion projects and help bring creative ideas to life ^[1]. This sense of involvement is a powerful motivator that project creators can leverage when designing their rewards.

Backers also value the opportunity to collaborate and contribute to the development process. They offer constructive feedback and suggestions, which project owners can use to improve their designs and product quality ^[2]. This “crowd intelligence” not only enhances the project but also creates a sense of psychological ownership among backers ^[4]. By actively engaging the crowd and soliciting advice, project creators can tap into this motivation and build a stronger community around their campaign ^[5].

Creating Unique Offerings

To create truly irresistible rewards, project creators should think beyond the standard offerings. While it’s essential to include copies of the main product, signed prints, or tickets to shows, extra-imaginative rewards can make a project memorable ^[6]. Here are some unique ideas to consider:

1. Personalized experiences: Offer studio visits, cooking classes, or backstage passes to give backers an inside look at the creative process ^{[4] [7] [8]}.
2. Limited editions: Create special versions of your product exclusively for backers, such as hand-numbered vinyl pressings or custom-painted items ^{[9] [10]}.
3. Creative collaborations: Allow backers to contribute to the project in meaningful ways, such as naming characters, writing dialog, or even appearing as extras ^{[11] [12]} .
4. Behind-the-scenes content: Share exclusive material like outtakes, early drafts, or production diaries ^{[13] [14]}.
5. Personalized creations: Offer custom artwork, songs, or stories tailored to individual backers ^[15] .

By offering unique and engaging rewards, project creators can create a stronger connection with their backers and increase the perceived value of their campaign.

Structuring Reward Tiers

Effective reward tier structuring is crucial for a successful Kickstarter campaign. Here are some key principles to consider:

1. Offer a range of options: Provide rewards at various price points to accommodate different budgets. The most popular pledge on Kickstarter is $25, so it’s wise to offer something substantial around that level ^[4].
2. Limit the number of tiers: For first-time creators, it’s recommended to limit reward tiers to five. This helps keep the campaign manageable and prevents confusion ^[7].
3. Create urgency: Use limited-time or limited-quantity rewards to encourage early backing. “Early bird” specials can help build momentum in the early days of the campaign ^[16].
4. Provide value at every level: Ensure that each tier offers fair value for the backer’s support. Remember that Kickstarter is not a store, but it’s also not a charity ^[2] .
5. Include a $1 pledge level: This allows backers to stay updated on the project and potentially increase their pledge later .
6. Structure pricing strategically: Consider offering volume discounts for higher tiers to incentivize larger pledges ^[6].
7. Be mindful of complexity: If offering products with many variations (e.g., sizes, colors), be cautious about the number of options to avoid manufacturing complications ^[7].

By carefully designing reward tiers, project creators can maximize backer engagement and increase their chances of reaching their funding goals. Remember to balance creativity with practicality, ensuring that all rewards can be fulfilled within the project’s budget and timeline.

Launching and Managing Your Campaign

Timing Your Launch

Timing plays a crucial role in the success of a Kickstarter campaign. Launching at the right moment can significantly impact the amount of funds raised. Data analysis of 342,287 Kickstarter projects has revealed several key insights about optimal launch times ^[1].

Weekdays, particularly Tuesdays, have shown the strongest results for campaign launches. Tuesday stands out as the clear winner in terms of both the number of launches and total backers ^[1]. Conversely, weekends are the least favorable time to launch, as people are typically engaged in personal activities and less likely to be online ^[1].

When it comes to the time of day, the highest backer activity occurs between 5 AM and 9 AM EST ^[1]. This timing allows campaigns to capture the attention of backers across multiple time zones, including the US, Canada, the UK, and Australia ^[2].

Seasonality also affects campaign performance. May has been identified as the month with the highest number of backers per project ^[1]. However, December should be avoided due to the holiday season, as both project launches and backer engagement are at their lowest during this time ^[1].

Engaging with Backers

Effective communication with backers is essential for maintaining momentum and fostering a sense of community around the project. Kickstarter provides several tools for creator-backer interaction:

1. Project Updates: These function as the project’s blog, allowing creators to share progress and important information .
2. Messaging System: This feature enables direct communication with individual backers or groups based on reward tiers .
3. Comment Section: Creators can pin important comments to highlight crucial information for all backers .
4. Backer Report: This tool allows creators to update the status of rewards, keeping backers informed about their order progress .

Engaging backers goes beyond mere communication. It involves making them feel like an integral part of the project. Jamey Stegmaier’s Viticulture Kickstarter campaign exemplifies this approach. By being transparent, seeking input, and swiftly incorporating feedback, Stegmaier successfully turned backers into invested collaborators and evangelists for his project .

Handling Campaign Challenges

Despite careful planning, challenges may arise during a campaign. Addressing these issues promptly and transparently is crucial for maintaining backer trust and support. Here are some strategies for handling campaign challenges:

1. Communicate openly: Use project updates to inform backers about any obstacles or delays. Honest communication fosters trust and demonstrates commitment to the project ^[4].
2. Provide regular updates: Even small progress reports can reassure backers that the project is moving forward ^[4].
3. Offer solutions: If facing significant issues, consider offering refunds or alternative forms of compensation to show accountability ^[4].
4. Be transparent about finances: Provide a detailed account of how funds were used to help backers understand the challenges faced ^[4].
5. Seek alternative solutions: Look for partnerships or different execution strategies to fulfill project promises ^[4].
6. Learn and adapt: Use challenges as learning experiences to improve future project planning and execution ^[4].

By implementing these strategies, creators can navigate campaign challenges effectively, maintaining backer support and increasing the likelihood of project success. Remember, how challenges are handled can significantly impact a creator’s reputation for future projects ^[4].

Post-Campaign Success Strategies

Fulfilling Promises

After a successful Kickstarter campaign, fulfilling promises becomes paramount. Creators must focus on completing their project and delivering rewards as promised, in accordance with Kickstarter’s Terms of Use ^[1]. This process, known as fulfillment, typically begins at the end of a successful campaign but requires careful planning and budgeting from the outset ^[2].

To ensure smooth fulfillment, creators should:

1. Research production and shipping methods before launching the project.
2. Consider whether to handle fulfillment personally or partner with a fulfillment vendor.
3. Factor production, manufacturing, and shipping costs into the overall funding goal ^[2].

For projects with over 500 packages, partnering with a fulfillment vendor is recommended ^[2]. It’s also advisable to create 3% more inventory as overage to account for potential package losses .

Transparent communication is crucial during the fulfillment process. Creators should keep backers informed about progress and any potential delays through project updates . This open and honest communication helps build long-term trust between creators and backers.

Leveraging Media Attention

A successful Kickstarter campaign often generates media attention, which can be leveraged for long-term success. To maximize this opportunity, creators should:

1. Build relationships with reporters before the campaign launch.
2. Share reporters’ content on social media, including their Twitter handles.
3. Develop a press kit with various stories and articles ^[4].

Social media plays a crucial role in maintaining and expanding the audience gained during the campaign. It helps increase awareness, connect with backers, and drive support for future projects ^[5]. According to a survey, 43% of customers use social media to find products and services ^[6].

To effectively leverage social media:

1. Post frequently to develop trust and loyalty with the audience.
2. Create eye-catching content that captures attention within three seconds.
3. Engage with followers by responding to comments and liking user-generated posts ^[7].

Transitioning to a Sustainable Business

Transitioning from a successful Kickstarter campaign to a sustainable business requires careful planning and execution. Key strategies include:

1. Refining the product based on backer feedback and campaign lessons.
2. Providing exceptional customer support to build trust and maintain positive relationships.
3. Expanding beyond initial backers through online marketing, social media, and public relations ^[17].

Financial management is crucial for long-term sustainability. Creators should ensure they have a clear understanding of their financial position and enough capital to cover costs until revenue generation begins ^[18].

Diversification is another important aspect of building a sustainable business. Creators should explore avenues for product diversification and community-building beyond the initial project ^[16]. This approach helps in adapting to market changes and ensuring long-term viability.

By focusing on fulfilling promises, leveraging media attention, and transitioning to a sustainable business model, creators can transform their successful Kickstarter campaign into a thriving long-term venture. Remember, the key to success lies in adaptability, continued innovation, and maintaining strong relationships with the community built during the campaign ^[19].

Conclusion

Kickstarter has proven to be a powerful platform to bring creative ideas to life and make money online. By following the steps outlined in this guide, creators can increase their chances of running a successful campaign. From careful planning and market research to crafting compelling stories and engaging with backers, each aspect plays a crucial role in the journey from concept to reality.

The path to success on Kickstarter doesn’t end with the campaign. To turn a successful project into a sustainable business, creators need to focus on fulfilling promises, leveraging media attention, and adapting to market demands. By staying true to their vision while remaining flexible and responsive to their community, creators can use Kickstarter as a springboard to long-term success in the digital marketplace.

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References

[1] – https://www.kickstarter.com/help/handbook
[2] – https://www.youtube.com/watch?v=f7FfjZjORCE
[3] – https://www.kickstarter.com/learn
[4] – https://www.kickstarter.com/articles/how-to-launch-a-product-on-kickstarter-building-your-community
[5] – https://www.kickstarter.com/creators
[6] – https://www.reddit.com/r/kickstarter/comments/12glch0/is_kickstarter_still_worth_it/
[7] – https://www.kickstarter.com/about
[8] – https://www.kickstarter.com/help/handbook/updates
[9] – https://updates.kickstarter.com/how-to-write-an-elevator-pitch-for-a-new-project/
[10] – https://medium.com/@rob_hallifax/i-raised-over-100k-on-kickstarter-heres-how-it-went-part-2-9c8432eff625
[11] – https://stonemaiergames.com/kickstarter-lesson-56-how-to-effectively-research-other-kickstarter-projects/
[12] – https://printninja.com/printing-resource-center/beyond-printing/crowdfunding-toolkit/determine-kickstarter-funding-goal/
[13] – https://help.kickstarter.com/hc/en-us/articles/115005047933-Why-do-people-back-projects
[14] – https://stonemaiergames.com/kickstarter-lesson-24-backer-engagement/
[15] – https://comradeweb.com/blog/8-tips-make-kickstarter-success/
[16] – https://inventionland.com/blog/the-top-ten-most-successful-kickstarter-campaigns/
[17] – https://grasshopper.com/resources/tools/crowdfunding-platforms-kickstarter-gofundme-indiegogo/
[18] – https://www.kickstarter.com/discover/most-funded
[19] – https://updates.kickstarter.com/tag/case-studies/