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How does Kickstarter Work? Insight into Business Model

Basically Kickstarter was started to help film-makers, musicians, painters, writers, photographers, designers and other creators to find the resources and support that they need to make their ideas into reality. To date, many creative projects have come to life with the support of the Kickstarter community.


Kickstarter Business Model is one of very simple Business Models that have very superficial business.

“Commission” is the age-old business model type and Kickstarter is an example of that Business Model.

Kickstarter gets 5% of all effectively funded projects. That is it. On the off chance that the undertaking doesn’t achieve the base support, the creator and the backer leave gratis. Thus, if the project raised $1 Million, then the project would get about $9000,000 into his associated bank account.

Bakers may or may not be charged until 100% of the funds are raised. The backers card will be charged only when the milestone is met.

While at first this income structure appears to be absurd, it’s Einstein material. Why? It makes a win-win circumstance with low exit and section costs for creators and supporters. This advances venture creation and along these lines energizes free promoting and the system impact.

How does Kickstarter Work? Insight into Business Model
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How does Kickstarter Work? Insight into Business Model

Published: