How does Kickstarter Make Money?

We are now well versed with how Kickstarter works. Now let us understand how Kickstarter make money. Kickstartercalls itself a Benefit organisation that is for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders.  The main goal of their company is to bring a positive impact on society through legally defined goals. Their corporate character is amended so as to lay out specific goals and commitments to arts and culture, making values core to operations and fighting inequality.

Let us understand in detail about how does Kickstarter make money.

Project Fees

After registration of each project, the company Kickstarter collects 5 per cent of the total amount of the campaign.

Paid Advertisement

Under its portal, the company Kickstarter has launched Paid advertisement service wherein the creators can use this service to attract more backers by targeting a group of audience.

Events

It is an online resource of emotional and practical guidance from creative people with a goal to inspire, educate and grow a community of people who dream of creating. The Creative Independent is an ad-free platform but does conduct paid events at various locations to educate people.

Kickstarter Magazine & Paid Ads.

Kickstarter launched its magazine to feature best creators and share various stories with the readers. It thereby also offered advertisement options to creators.

Drip and Xoxo

A drip is a tool for people who need fund on a continuous basis for ongoing projects. The drip will eventually be merged into Xoxo wherein Kickstarter will go further with working with creators and community to build Long term partnerships and sustainable career.

As on January 2019, the company Kickstarter has received funding of $4.075+ billion for 156750+ projects from more than 1.5 million backers. There are more than 50 million + pledges on the portal.

Below are a few notable projects on Kickstarter.

The documentary short “Sun Come Up” and documentary short “Incident in New Baghdad” were each nominated for an Academy Award as well as contemporary art projects “EyeWriter” and “Hip-Hop Word Count” were the two projects chosen to exhibit in the Museum of Modern Art and filmmaker Matt Porterfield was selected to screen his film Putty Hill at the Whitney Biennial.  In 2012 the author Rob Walker’s Hypothetical Futures project exhibited at the 13th International Venice Architecture Biennale, and musician Amanda Palmer’s album “Theatre is Evil” debuted at No. 10 on the Billboard 200 and approximately 10% of the films accepted into the Sundance, SXSW and Tribeca Film Festivals are projects funded on Kickstarter.

If you’re willing to start your own crowdfunding business – you should go with Kickstarter clone which has customized features to let you roll with your own crowdfunding business.