Kickstarter is a marketing platform, not a funding strategy

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I am sure most of you are familiar with crowd funding platforms like Kickstarter and Indiegogo, but there is a lot of misconception on how companies utilize these platforms. You are not raising money and selling equity. This is a glorified discount pre-order platform, plain and simple, and it works. Whether you are an existing brand with a new product, or a new brand just launching, platforms like Kickstarter are an amazing way to get some initial revenue in the door to cover first run manufacturing costs, gauge interest, seed reviews and drive buzz.When running a Kickstarter campaign, the expectation should not be that you will be profitable, if at all, on the initial push. This should be viewed to help cash flow a product launch and initial buzz.The reason that it is not profitable is because you need to spend a lot of money on driving media to the Kickstarter campaign. Very rarely does a project fund without spending money on Facebook/Instagram media.I have very little personal experience in this category, but there are several agencies in the space dedicated to helping drive media and overall funding for campaigns. If you want an introduction to them, you can email me anytime.

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