The Power of the Crowd: Kickstarter Story

10 years ago, the thought of getting hundreds of people to fund you for your personal project may be considered impossible. But nowadays it’s happening more and more on Kickstarter. The site helps creative projects from making documentary movies, band project, video games, computer or smartphone accessories, you name it.  The concept is dead simple: You post your project at Kickstarter, set the sum of money as a goal and ask everybody to pledge. Of course you need to provide incentives for people so that they’re willing to part with their hard earn cash. If the goal is not reach, all the money will be returned to the original pledgers.

It hit its first groundbreaking record by gathering USD 942, 578 for LunaTik, an accessory that can turn your iPod Nano into a watch. That’s almost 1 million USD! Their second try at Kickstarter is also an Apple accessories, although the numbers is not as groundbreaking as Lunatik but it’s still exceed their goal by 300%.

The above record had been surpassed by another Apple accessory, a dock for the iPhone exceed 1 million USD with almost 10.000 pledgers, making it the most funded project in Kickstarter at the time.

Yes, the numbers are amazing. But think about it for a second. Kickstarter helps eliminate intermediaries and get you directly to your customers. No more pitching to the publisher, looking for distribution channel, etc. You are connected DIRECTLY to your consumers! Which means 3 things:

  1. More control in your part, the product will not be influenced by third party.
  2. More money for you since you control everything
  3. More transparent communication for customers.
Related:  4 questions you MUST ask to yourself before making your own startup

It’s a win-win solution! Now does that big of a number it only works on Apple accessories? Well not really. a couple of days ago I saw Tim Schafer, the maker of Day of the Tentacle, Monkey Island and Brutal Legend posted a tweet that his studio (Double Fine) will make another Adventure game. He post the project in Kickstarter and put a video of him and his staff. The thing is, he doesn’t even tell us what game is about aside from it being a point-and-click adventure games like the old days.

In less than 24 hours, it hit almost 1 million USD more than 1 million USD. IN.. LESS.. THAN.. 24 HOURS.. wow. Hitting the all time record of the most fund raised in 24 hours in Kickstarter.

Yes, crowdfunding works, yes the numbers are amazing. With this kind of ecosystem, who needs Venture Capital and publishers?

 

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Aria Rajasa

Aria Rajasa Masna is a passionate businessman with an knack for design, casual fashion and also digital industry. Currently positioned as the head honcho of tees.co.id and swagshop.co. Doing his best challenging the impossible on the daily basis.

 
  • Crowdfunding works when the ecosystem allows it to work and enough people appreciate good ideas enough that they’re willing to pay for it. For something like Wujudkan.com which is just starting out and is locally based, it’s still up in the air. The survey conducted by the team behind the startup say it would work but again, it’s one thing to ask people if they’re willing to pledge, it’s another to get them to send the money. I’m hoping it works for them.

  • Anonymous

    True, even in the US it’s still a hit and miss. If you don’t have traction then it’s just not going to happen. A certain condition needs ti be fulfilled in order for this to work. The 2 most important part is payment gateway and customer trust.
    IMHO The ecosystem in Asia is still not ready, but we’ll see how it goes. Maybe I can do a follow up post on this.

  • Now do you count Tim Schafer’s case as an outlier or the norm at kickstarter?

    I mean Tim is a *legendary* game designer. There are a lot of people out there who would buy just based on his name. Notch is also behind this kickstarter, so the buzz is huge.

  • Anonymous

    As much as i hate to admit, he is an outlier. But he draws a lot of eyeball to the subject. The next step maybe legendary people from famous studios like blizzard starts going indie and choose this method. This is significant enough to give hope and to open people’s mind that there is another way :)

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