What is Crowdfunding?
Crowdfunding is a way for entrepreneurs to raise the funds needed to start a new business, release a new product or bring an idea for a new product to fruition without using traditional investors. Essentially, a project is funded by the very consumers who will want the product or services offered.
Example: lets say you want to create a new magic box that will sell for $10. but to produce it, you’ll need $1000 for manufacturing etc. If you can find 100 people who like and want your magic box, and each of them will pay the $10 up front (to help get it made) you have your $1000! If your idea is really great you may get many more than 100 people willing to “support” the project and you could end up with much more than you need!
Trickstarter is Crowdfunding for Magicians!
There are TWO kinds of trickstarter members: Creators and Supporters
Creators: A creator is someone who has an idea for a new magic product that they wish to bring to market. They put together a Trickstarter “project”, using pictures, descriptions, drawings and even video, to tell the world about it, and to try to raise the funds needed to make it happen.
Supporters: A supporter is someone who likes the creator’s idea enough to say, “Once these are available, I want one!” And the supporter is willing to pay for one or more of them up front (pre-order) in order to help get the product produced!
How it works:
The Creator sets a financial goal for the project, (say $1000) based on what it would take to develop, produce and bring the idea to market. The Creator also sets a time limit to raise these funds (say 30 days). Once the creator is ready, they “launch” their project and spread the word about it!
Essentially, supporters come along and “reserve” the product by promising to pre-pay for the item IF (and only if) the project meets it’s funding goal. Now since the Creator has set a funding goal, the amount raised must MEET or exceed that goal, if it doesn’t, NO ONE gets charged, and the project is unsuccessful. Shortly after the project ENDS, the supporters (a.k.a. backers) are THEN charged for the items they pledged for.
If successful, the creator takes the funds raised, produces the product, and sends it to the supporters when it’s ready!