Is it weird that companies are using KickStart to fund

  • Thread starter Thread starter Shark Diver
  • Start date Start date

KickStart yeah or nay

  • Who cares

    Votes: 9 33.3%

  • Bad

    Votes: 4 14.8%

  • Good

    Votes: 14 51.9%
  • Total voters
    27
Shark Diver

Shark Diver

New member
new products?

Or is this just the new business model?

Just seems strange that established companies are using this as a way to generate capital. And given all the failures of so many companies in the past few years I'm surprised it is being embraced. Just signals no capital for the company? IDK I get why some new companies do it, but it just seems they couldn't get financing elsewhere - which should give you pause.

I've seen 4 music product KickStarts in the last few days. What happens if they don't reach their goal? Does the product just not get made? What happens if they reach their goal and the pledgies don't change their mind?

This is no slam on any company. It may be the way everyone does stuff in the future. You can gage interest, and fund without much risk. Also, the bigger pledgers get some perks.

Just wondering how people felt about this stuff.
 
I think it's good! I've invested in several and all have panned out!
 
I think there are two types of companies using Kickstarter. Those that you described, without a ton of start up capital, and then guys who want to ensure there's actually demand for a product before release, which I take is the case when more established builders take that route.
 
I'm all for it. Fryette may be an established company but they certainly are not Marshall or Mesa. Releasing products that don't generate revenue will hurt them on a larger scale. The amount they would have to produce to keep things financially appealing would be a large investment on their part. We are in a world of how much product can I get for as little cost as possible.

With a KickStarter type deal, if the market really wants the product, they can put their money where their mouth is. Now, am I wrong in thinking that just like backing any endeavor, if it doesn't pan out you don't get your money back? Kind of like investing in stocks. If they tank, it was an understood risk.
 
Heck, I'm wondering what product I could build to try out a kickstarter.
 
I thought it was really weird at first when I started seeing established businesses doing it. But then I realized that the businesses I saw doing it were mid tier businesses that probably could not suffer the big hit if the product flopped. So I guess I don't mind it for these businesses that aren't part of a giant corporation. It gives them an idea of how much interest the proposed product has in the marketplace.

Now I'm not exactly familiar with how they advertise the kickstarter campaigns...do enough people in the general market find out about it? It seems that the core supporters of said business know about it and I suppose those people are going to be the highest donors, but I'm still curious how accurate of a picture these campaigns paint. I suppose if they reach the desired $ amount the risk of bringing the product to market is worth it.
 
I think it's cool. I wouldn't bother with it, but I get why people do it. I think Loomis did something like this recently. If you want the music, it is a way for him to finance it.

Steve
 
You aren't charged until the Kickstarter project actually reaches its goal and the pledge period ends. After that, you're at the mercy of the company/person you donated to.
 
I don't like it. However it is upfront about it being an investment in an idea for both better or worse. You pay your money and take your chances. You know what your getting into upfront. Much better than the current trend of taking deposits on vaporware. Less misleading about the risks involved.
That said I think Sah5150 has the right idea. You pay your money He ships your product that is in stock. Leave investing to the investors.
 
I have no problem with it in the slightest, and especially no problems with bands doing it.
 
I understand why bands do it. Businesses need to act like businesses. A business doing this strikes me as amateurish and desperate.
 
Chubtone":2v5e6xa4 said:
I understand why bands do it. Businesses need to act like businesses. A business doing this strikes me as amateurish and desperate.
Click to expand...
^ This...
 
so if someone sends kickstarter a grand for the Fryette project,what does the investor get out of it?
 
Tone Merchant":3vx12c1a said:
so if someone sends kickstarter a grand for the Fryette project,what does the investor get out of it?
Click to expand...

You go to the 'perks' section under a kickstarter and it will displayer what you get for investing X or Y dollars.

I think Kickstarter and crowdfunding in general is great. Its just like preorders.
 
I guess if most don't think it is weird it will work for some.

Just seems either a company doesn't believe in their products, or aren't financially stable. But it may just be a better way to take a market survey. Again, not a slam on any company or product - the internet is really changing the way people do business, and I was just curious what people thought about this new trend. :)
 
You must log in or register to reply here.
Back
Top