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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
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
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
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.
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
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