If you have a great idea for a hardware product, that’s a good first step.
But unfortunately, an idea doesn’t mean much unless you’ve got the startup capital.
For this reason, many people choose a crowdfunding platform like Kickstarter. ‘
Creators post their project ideas, specs, potential risks, and progress updates with the intention of getting donations from interested backers.
Have you ever heard of…
- Cards Against Humanity
- Ouya
- The Coolest Cooler
- Pebble Time/Pebble 2
- Exploding Kittens (Card game)?
If any of those names ring a bell, you should know that they originated as Kickstarter projects…
And YOUR product idea can become just as successful if you take the right approach!
But just like any fundraising method, Kickstarter has pros and cons as well; here are a few of them:
PROS:
- Pre-production sales
- Creates market awareness
- Massive audience
- Reduces marketing costs
And most importantly, it allows your market to test the product and give their feedback, so you can make any necessary changes for a highly-improved second product run.
CONS:
- Very expensive — Gone are the days where creators could simply list their product and get funding straight away. Expect to pay a MINIMUM of $20k to start, plus $10-50k additional for ad spend.
- A working prototype is a must — People want to see how your product works physically. Previously it was sufficient to have images or 3D models for people to invest, but due to scamming, Kickstarter now requires a functional prototype to start campaigns.
- Copycats — If you show your idea too early, you run the risk of knockoff products surfacing.
There are many instances of founders being well into the production phase of their campaigns, only to have someone else start selling and delivering a similar product!
Needless to say, the pros and cons provide much to think about.
But if you have an idea and want to know if a Kickstarter campaign will meet your needs, let’s talk!
We have worked with many campaigns in the past, and we’re happy to share our findings!