What the Heck IS Kickstarter?
We won't repeat the entire Kickstarter FAQ here, but we do want to provide a quick start to Kickstart, as it were. We're going to launch Film Tycoons with a Kickstarter campaign, and it's important that our potential supporters understand why we've chosen this strategy.
Kickstarter enables crowdfunding of business and artistic endeavors. Assume you want to start a business -- one of the first things you calculate are start-up costs. Let's say your hypothetical business needs $15,000 to get off the ground. Traditional methods of raising that $15k include saving from your "day job," getting a loan from a bank, soliciting investors, or the "rich relative" technique.
Crowdfunding is a newer model with some unique benefits to both the business owner and supporters. In a nutshell, the potential business owner publishes a description of his/her project on Kickstarter. For 30 days, people can read the description and pledge support. The project includes rewards based on the level of support. One of the most common rewards is to receive a copy of the product at a discounted rate, ahead of general availability. Other rewards might include some sort of personalization to your copy of the product or an additional add-on unavailable to future customers.
Backers are NOT investors nor lenders. Backers are patrons, supporters, and customers. Some contribute simply because they want to support a new business, particularly for a friend. Most backers are contributing to get one of the rewards offered.
Next: Did someone mention rewards? -->