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Why Kickstarter is better than a private investors



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Why Kickstarter is better than a private investors

We all know that Kickstarter is a great way to boost your success, as long as you have a successful campaign since a lot of people will back you in your efforts if they like what you're doing.  The majority of Kickstarter campaigns actually end in failure, but that's not what we're here to talk about, I'm going to be going over the benefits of running a successful campaign is better than getting funding through a private investor.

Getting investors in the form of "backers" from Kickstarter has many benefits such as you own your company after getting the investment, you don't have to listen to investors telling you how to run your business, you are getting people to pay you up front for a product that you will create at a later date, it's actually easier to get funding through Kickstarter than it is a private investment firm, and you'll get your initial wave of customers along with profits to keep boosting your company Why Kickstarter is better than a private investors

Below are the 5 main reasons Kickstarter is better than a private investor when it comes to building up your funding in order to become successful.


You own 100% of your company
When you're working with Kickstarter, you'll actually own 100% of your business after a successful campaign.  You won't have to give up a position in your company hierarchy, you won't have to sign over any shares or stock, and you will run everything on your own. 

When you bring no a private investor, they will give you a massive amount of money, but they will expect you to sign over a percentage of your company as well as send them profits so they make money on your deal.  With backers from Kickstarter, you just have to send out your product after it's finished, and you will never have to sign any shares or stock over to them for putting money into your business.

You don't have to listen to investor suggestions
When you're getting backed by Kickstarter investors, you won't have to take their suggestions, which means you can run your business however you want.  Most backers from Kickstarter will give you money because they like your product, not because they want to profit off of you, so it's similar to if they were to just go to the store and buy something.  The beauty of backers from Kickstarter is that they will give you money for something that isn't being mass produced just yet.  This shows they trust your business, they have good hearts, and they want to see you succeed.

When a private investor gives you a bunch of money, they'll want to give you plenty of suggestions and you'll likely put them into consideration because if you don't, they'll pull their money and leave.  They want to know they can control your business and point it in the right direction, even if they don't know as much as you do, but you'll likely listen because you need their money.

You get paid for a product you haven't produced yet
With an investor, you need to have everything set up and running like a well-oiled machine.  You need to have a product or service that has been tested and fine-tuned, as well as profitable from all the sales you're making, and then an investor will become interested.  An investor won't throw money at you unless you are already successful, unlike Kickstarter backers who have faith in your product and want to help you get off the ground.

You don't need a production line in full working order to get a decent amount of backers from Kickstarter.  They will see your pitch, your product, and then evaluate you as a person as well as a business and decide if they actually want the product or not.  Most of the time, a backer will invest money in your product because they want it, not because they need it.  This will boost your initial sales and make it easier to boost your business in a shorter amount of time Why Kickstarter is better than a private investors

It's easier to get funded through Kickstarter
If you think about it, with the number of successful campaigns on Kickstarter compared to the ones that were unsuccessful, it's actually easier to get a lot of funding through crowdfunding platforms than it is to seek out capital from a private investor.  That's because a crowdfunding platform is full of people who aren't actually looking to profit from you, they just want your product, which they will "invest" in and eventually get from you when you're done building it.  With an investor, you could pitch hundreds or thousands of them, and never hear back until you actually start becoming successful.

There have actually been a bunch of companies that have run a successful Kickstarter campaign and have then gotten contacted by investors, who gave them additional money, which is a win-win in most peoples books.  Sure, you'll have to give up a portion of your company, but you'll make more money in the long run with a great investor backing your product Why Kickstarter is better than a private investors

You get an initial wave of customers
On Kickstarter, you'll be getting your first wave of customers, since they will essentially be purchasing your products before they're made, and this means you have a bunch of people who could potentially leave you some positive reviews online.  If you do it right and don't miss any deadlines, you can actually get the majority of your backers to share your products with their friends and family on social platforms which would boost your profits exponentially.


In conclusion
Most people think they need to contact big time business investors in order to become successful online in a short amount of time.  This isn't actually true because you can get plenty of funding through crowdfunding platforms like Kickstarter.  Sure, you don't have a guaranteed chance at getting millions in a short amount of time, but you can definitely get funded if you take your time setting up your pitch.  You just need to use high-quality images, great video, and perfect ad copy to show people what you're all about and why they need your product.  If you can do this, you will notice you have a successful Kickstarter campaign and people will continue to back you after you've hit your goal Why Kickstarter is better than a private investors


Remember to follow me!
https://www.seoclerks.com/user/TommyCarey


Thanks!

Tommy Carey

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overcast

Patreon is another option in case if the kickstarter does not work. I have seen some of the people making use of the indiegogo. And for them it works out. The reason being indiegogo is international whereas the kickstarter is limited to some of the specific places. I think kickstarter can be a good option if one wants to have higher funding and support.




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cmoneyspinner

Have heard a lot about both Kickstarter and Patreon. This post sets forth some excellent reasons for choosing Kickstarter. I especially like reasons 1 and 2. I will have to do more research on Patreon. Glad you mentioned the bit about KS being limited to specific places.




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overcast

You are in US so you have option of kickstarter, indiegogo and patreon. But for me it's only the patreon and indiegogo. I hope in future things change and I'd get better options though. They can be a good funding options for the business startups. So far not much progress on funding type of the companies.




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JoeMilford

I've been using Patreon with a bit of successful for some of my visual art for about a year now. I have also seen people do well with indiegogo and kickstarter--I was not aware, until your post, that kickstarter was not international, but that is good to go. Like Tommy above, I think that anytime you can own your own content, services, and products and not be beholden to a private investor to your own financial detriment then that is the best way to go. Still, if you can find a really good private investor and find a sweet deal there, then it is also a really great opportunity.




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overcast

It feels good that some of the people appreciate our work through patreon. I have not much success as of yet. But I am slowly working on those things. Hopefully though in near future things may change. I have also noticed that indiegog may get more regulations. And this may also change things.




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Corzhens

I am surprised that there are many sites now that cater to the needs of a project that is seeking investors. This is one good thing that you can find in the internet because finding an investor is so difficult especially when you don’t have the means to reach the target prospects by publicizing your project. I have no plans of getting an investor for now but the posts above will be helpful when I embark on such an undertaking.




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overcast

I think as long as people are genuine. They can definitely help get the funding. But the private investors are a bit harder. I think indiegogo is another crowdfunding resource which can be a good start for many investors. And also it can be good for the people who are into innovation. I personally prefer to have the kickstarter because there are some really good products.




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kgord

Thanks for the lowdown on how Kickstarter works. I am wondering if you have to pay for a campaign on there or how it works exactly. I think there may be more than one program out there so it is one of the things that website owners might want to investigate and take note of.




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Tronia

I absolutely love Kickstarter and you've hit homerun with the fact that you own 100% of your company. If you ever want to get funded by a private investor they will always want a share of your business. At first something like 10% might seem small but imagine if you grow and you have to keep splitting the future profits... it's frustrating.

Kickstarter is a great platform and has launched so many amazing projects. I'd definitely consider it if I'd ever need a large amount of money.




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treecko142

Yeah, that's the #1 takeaway for me. I don't have any company yet or have any interesting projects in mind but retaining 100% of your company/project alone is already worth of going to kickstarter than private individuals.




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kgord

It does sound really good and if you can own 100 percent of your company so much the better. I think it sounds like an awesome idea and one that would be easy to put into play. I think it is awesome to have this as part of your operation.




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Barida

The percentage that is always desired by those private investors is something that is not always cool with me as well. The worse is that some of them will always want to claim that they are part of the company even after contributing so little to the growth of the business.




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DarthHazard

I think the biggest benefit of getting funding through a site like Kickstarter is that you own 100% of your company. You don't have to give control to anyone and that allows you to keep control of the decisions that you have to make and the paths that you take in relations to developing your business.




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Martinsx1

That 100% ownership of your company operating under Kickstarter is the best deal in it. Who wouldn't want to be the sole owner of his business investment? So getting such through Kickstarter is definitely a good way to go about one's business.




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Kakashi2020

I've attended several kick starter seminars in my country spearheaded by personalities who's companies own if not monopolizes big businesses and the premise of getting funded and all of what you said is true but I don't know if different rules or guidelines applies to different countries but here kick starter programs are funded by big business who owns financial institutions and other businesses. Disguising as a crowd funding company they will fund you but it's actually a business loan which means you have to form your company first with all the requirements like an office along with banking requirements so basically your getting funded through a bank loan which you have to pay with interest. Their security is in order to avail of this loan or seeding fund you have to comply with the loan requirements and one of those is capitalization and collateral. So it's a win for them. Then application to the program means submitting and surrendering all of your product data to them for them to study and evaluate before they approve or decline said project. Wow Me turning my WHOLE IDEA with DETAILED PLANS to them hahaha go fish.

In reality this is how it truly works:. You got an idea , You give it to them, They approve some just to attract many, They get more ideas, They pick the good ones and set up shop in another country without you ever knowing it.
that is the nature of the big fish they eat the small fry in order to survive.




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jpyy

Is it easier to get funding thru crowdsourcing? I'd say not. Instead, you find only those with certain ideas and/or the right support crowd to go anywhere. Anyway, to gain the support crowd, you also have to spend a lot and perhaps in some cases, that's more expensive than seeing out private investors, not sure.




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SiamSEO

As much as I love and have used Kickstarter, some of these reasons are just ridiculous. For example #2: you still need to listen to your community, and while you don't necessarily have to do what they want, going the other way is surely going to damage your project.

And getting paid for not even delivering (yet)? Sure, but you might want to ask how much your customers will like that...




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TommyCarey

Again, try to comprehend what I've written.

Backers from kickstarter are people purchasing a product or service from you, they're not investors and you don't have to listen to them after they give you money. Yes, you should listen to what people are saying online, but that doesn't mean you need to change your entire business model.

People always complain online about something they hate about a website or business, but there are usually more people that are happy with how everything is working. So, if you were to apply changes to your system or website in order to please the people who are complaining, you're likely just going to annoy more people who were currently happy.

Stick to your guns, do what you want, build the business you dreamed of and that's how you become successful. You can listen to your community, but you don't have to change because of them.




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Judas2018

Kickstarter and other project funding sites like Patreon and Indiegogo are great for funding your endeavors without feeling like your new project is being held hostage by investors or people who are going to request so many alterations and changes to your original vision. However, you have to make sure that your roll-out is on point. People aren't going to donate to your cause or fund you if your pitch seems cobbled together and sloppy.




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Barida

Ensuring that the project that you are embarking upon is one that is of great benefit is something that is quite okay as well. I have come to notice that once we have convincing prospects, that everything is definitely going to work for the better.




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vinaya

I have tried kickstarter as well as private investors, however, both of these methods did not work for me. I could fund my business through kickstarters or private investors. Therefore, I decided to get a bank loan when I was launching my brick and mortar business. Funding your business through a bank loan can be very risky because you have to pay to the bank regularly. You will also be paying high interest rate. However, there is no option left other than bank loan if you do not have reserve funds or do not find any kickstarter or investor.




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DenisP

Kickstarter is a really fantastic site, and I just love the idea of people being able to directly fund a potential product or service that hasn't had the chance to manifest itself yet. But at the same time, it is also starting to lose its reputation because of so many people abusing it.

From blatant cash grabs and scams, to people simply begging for money, to unfulfilled promises and overly ambitious endeavors, all of these things combined are making a lot of people skeptical when it comes to funding Kickstarter projects. I hope that its degrading reputation doesn't make it go under, because there have still been so many great things to come out of that site.




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Kakashi2020

The Kickstarter program is a good idea but it shouldn't be headed by big business, it should be like a cooperative where normal people can invest a standard small sum only to avoid any big business influence.




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Barida

You have good reasons on what you said about the kick-starters option than when one decide to go with a private investor. The issue with most private investors is that they will want you to do what they want and not really what you feel that can favor your business. This is where the case of clash of interest will come up and before you know what it is happening, it will look as if you are still working for someone while you should be the owner of the business.




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Judas2018

Very true. I was once approached by a buyer interested in buying into my website some years back. I had already done extensive research on what can happen when you take on a business partner who infuses your business with equity. So I told him thanks but no thanks. I want my site to be run under my own rules and my own ideas, otherwise I'd have a boss... And entrepreneurs don't get into this line of work so they can take orders from someone else.




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Barida

That's the big issue that I always try as much as I can to avoid as well. It doesn't feel good to know that the business that took you time to establish is being handled by another person and in some cases, the person will want you to play by their rules.




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Martinsx1

The truth is that these private investors are actually looking out for their investments and would go to any length to having it secured and their Return of Investment (ROI) guaranteed. I actually don't blame them for behaving this way because no body would want to lose an investment.




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Judas2018

I agree. Which is why if I am an investor, I'd rather buy something from someone and make my own changes and alterations than become an equal or semi-equal partner. I think you can do business with partners, but you must come into that business together. With similar ideas and goals. Taking on a partner 4 or 5 years into a venture, who wants to upset the apple cart with all kinds of new tweaks, when business is running smoothly is a major problem. It's one thing for them to agree to find you new advertising revenue or new clients. It's another when they want a full overhaul of everything you've already built.




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Corzhens

That Kickstarter looks like a pretty good way of getting capital from investors. As you said, you own the company so there is practically no risk of being kicked out of the business. In some crowdfunding scheme, that can happen to the organizer that in the end, he will be left out of the picture because the investors have taken over. And what’s best in Kickstarter is what you said about investors not having a voice in the business.




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Martinsx1

The thing I love most about the use of Kickstarter is the complete ownership of your business and having the decision authority all by yourself without having to worry about investors input. This gives one control over his business and helps him determine the best direction to push the business. Also on the note of easily getting the business funded is another good thing about Kickstarter.




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flyinwashi682

Thank you so much for the idea i will try it out




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jaymish2

The idea of Kick starter is amazing. But have you seen the number of businesses that fail after they get funded here?Not many. This is because when you have a private investor, it's normally someone who has many businesses and can advise you on how to grow your business. Remember the business owners also have to give something away like their merchandise. This costs quite a bit especially when you're just starting out.




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DarthHazard

I think the biggest and best benefit of using a site like Kickstarter to get funding for your idea compared to private investors is that you aren't actually giving away any of your company shares or control of your company to someone else. You have 100% of the company and thus you have complete control over the decisions that need to be made. It also allows you to direct and push the company/idea exactly the way you want to without listening to someone else.




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amelia88

I am also of the belief that still having full ownership of your company is huge. Especially if you strike it big, it's nice to know that you're still in control rather than having the profits slashed because of outside interests.

Crowdfunding is becoming the way to go for raising capital quickly, and I think we're going to see more and more of it happening in the future.




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