Comments on: Hip New Funding Site: Kickstarter.com http://www.consumerismcommentary.com/2009/09/08/hip-new-funding-site-kickstarter-com/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Fri, 19 Mar 2010 14:31:20 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Gordonhttp://www.consumerismcommentary.com/2009/09/08/hip-new-funding-site-kickstarter-com/#comment-199578 Gordon Sat, 24 Oct 2009 00:12:01 +0000 http://www.consumerismcommentary.com/?p=7278#comment-199578 I just wanted to comment that money from Kickstarter is not "free money."I am using Kickstarter to self-publish my comic strip's first book collection (I just passed my goal of $7500 today), but the pledge rewards include free digital copies of some of my comics, a free signed and doodled-in copy of the book (of course), sketches, exclusive T-shirt, or even cameo appearances in the comic book itself.I'm definitely working for that money — even if the backers are paying me about the same as (or more than) they might for these same things. While, sure, I'll get to keep the rest of the profit from the book sales, after all my costs have been covered, I don't know if calling that "free" money is really accurate.You yourself point out that projects give "a little something back for their effort." You have to have something of value to offer, or nobody is going to back your project. It's like getting an advance from my readers, rather than from a publishing company. I just wanted to comment that money from Kickstarter is not “free money.”

I am using Kickstarter to self-publish my comic strip’s first book collection (I just passed my goal of $7500 today), but the pledge rewards include free digital copies of some of my comics, a free signed and doodled-in copy of the book (of course), sketches, exclusive T-shirt, or even cameo appearances in the comic book itself.

I’m definitely working for that money — even if the backers are paying me about the same as (or more than) they might for these same things. While, sure, I’ll get to keep the rest of the profit from the book sales, after all my costs have been covered, I don’t know if calling that “free” money is really accurate.

You yourself point out that projects give “a little something back for their effort.” You have to have something of value to offer, or nobody is going to back your project. It’s like getting an advance from my readers, rather than from a publishing company.

]]> By: Matthttp://www.consumerismcommentary.com/2009/09/08/hip-new-funding-site-kickstarter-com/#comment-198271 Matt Sun, 13 Sep 2009 08:28:08 +0000 http://www.consumerismcommentary.com/?p=7278#comment-198271 I think KickStarter is a great idea! Corey is right, people do have a desire to help people. And I certainly would rather be "funded" than to take a loan from someone who I also don't know. I would also feel more accountable to finish the product. I think KickStarter is a great idea! Corey is right, people do have a desire to help people. And I certainly would rather be “funded” than to take a loan from someone who I also don’t know. I would also feel more accountable to finish the product.

]]> By: david hausdorffhttp://www.consumerismcommentary.com/2009/09/08/hip-new-funding-site-kickstarter-com/#comment-198116 david hausdorff Wed, 09 Sep 2009 14:26:30 +0000 http://www.consumerismcommentary.com/?p=7278#comment-198116 Awesome list. I’m in the midst of site review. You literally posted this the day I started on it Awesome list. I’m in the midst of site review. You literally posted this the day I started on it

]]> By: Coreyhttp://www.consumerismcommentary.com/2009/09/08/hip-new-funding-site-kickstarter-com/#comment-198083 Corey Tue, 08 Sep 2009 12:56:41 +0000 http://www.consumerismcommentary.com/?p=7278#comment-198083 Business partners are not for funding. Sure, loans are one option for funding a business venture, but depending on the size of the company and its credit history (zero at this point), they don't come easy. Getting funding from private investors in exchange for stock in the company has become the default for companies in the tech industry, and it's growing popularity in other sectors. It's long been the investment model for companies starting from nothing that need a large amount of funding (greater than 5M).People have a natural desire to help other people innately, and that's exactly what they get a chance to do at Kickstarter. They can put their money towards something they support (see the Kickstarter project about saving old records) and they can get a little something back as a thank-you. Not everybody is going to be interested in doling out cash to someone over the internet, but we're getting more and more web-savvy and there are plenty of people that ARE willing to do just that for the whole project to be a success.If you've not already, I suggest checking out Kiva.org. They're a micro-loan website dedicated to lending to people in need. Not unlike Kickstarter, they're crowd-funded, but the loans they give out do get repaid (98% repayment rate, in fact) and you're helping someone in need. Business partners are not for funding. Sure, loans are one option for funding a business venture, but depending on the size of the company and its credit history (zero at this point), they don’t come easy. Getting funding from private investors in exchange for stock in the company has become the default for companies in the tech industry, and it’s growing popularity in other sectors. It’s long been the investment model for companies starting from nothing that need a large amount of funding (greater than 5M).

People have a natural desire to help other people innately, and that’s exactly what they get a chance to do at Kickstarter. They can put their money towards something they support (see the Kickstarter project about saving old records) and they can get a little something back as a thank-you. Not everybody is going to be interested in doling out cash to someone over the internet, but we’re getting more and more web-savvy and there are plenty of people that ARE willing to do just that for the whole project to be a success.

If you’ve not already, I suggest checking out Kiva.org. They’re a micro-loan website dedicated to lending to people in need. Not unlike Kickstarter, they’re crowd-funded, but the loans they give out do get repaid (98% repayment rate, in fact) and you’re helping someone in need.

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