How does Kickstarter work?

1. All-or-nothing funding

Every Kickstarter project has a funding goal and a deadline. Backers pledge money during the campaign, but their cards aren't charged until it ends. If you reach your goal, everyone is charged and the project is funded. If you fall short by even a dollar, every pledge is cancelled.

It sounds harsh, but it protects you: you'll never be stuck owing 300 backers a product you can't afford to make. It's also why your goal should be the lowest amount that still covers everything, not a hopeful number.

2. Rewards, not investment

Backers aren't buying shares and they aren't donating. They pledge in exchange for rewards: a copy of your game, book or gadget, often with early-bird prices or extras. You can also offer add-ons (expansions, merch) that backers attach to their pledge.

Kickstarter projects must create something to share with others. Equity, charity fundraising and some product types (such as weapons or health claims) aren't allowed.

3. What Kickstarter takes

In the US the per-pledge processing fee is around $0.20–$0.30, and pledges under $10 use a different rate (5% plus a smaller fixed fee). Plan for about 8–10% in total. Calculate your exact fees here.

4. When you get paid

When the campaign ends, Kickstarter charges backers' cards. Some cards fail; those backers get 7 days to fix their payment. Kickstarter then starts the payout, minus fees, 14 days after the campaign ends, and your bank usually shows it within another 3–14 business days. Plan your cash flow around that: factories usually want a deposit soon after.

5. The campaign timeline

1. Prelaunch page. Before launch you can publish a prelaunch page. Visitors click "Notify me on launch" and Kickstarter emails them when you go live. Kickstarter recommends having it up at least a month before launch.
2. Project review. You submit the project and Kickstarter checks it against its rules, usually within 3 business days.
3. Launch. You pick when to go live. The first two days matter most: a big share of the total usually arrives on day one.
4. The campaign. Campaigns can run 1–60 days; Kickstarter recommends 30 days or less. You answer comments, post updates and unlock stretch goals.
5. Funding and payout. Cards are charged at the end, then you're paid about two weeks later.
6. Pledge manager and fulfilment. You collect addresses and add-ons, make the product and ship it, keeping backers updated along the way.

Want the step-by-step version? Use the launch checklist.

6. After the campaign

Funding is the halfway point. Next you'll usually open a pledge manager to collect shipping addresses, sell add-ons and take late pledges. Then you manufacture, ship and post regular updates. Kickstarter's own fulfilment guide puts a typical physical project at around a year from campaign end to the last delivery, so set honest delivery dates on your rewards.

7. Who can launch on Kickstarter?

You need to live in one of the 25 countries Kickstarter supports (including the US, UK, Canada, Australia, New Zealand, Japan, Mexico, Singapore, Hong Kong and most of western Europe), with a bank account and ID from that country, and be 18 or over. If you're not in a supported country, look at Kickstarter alternatives such as Gamefound, BackerKit or Indiegogo.

Sources

• Kickstarter, Kickstarter fees: a comprehensive guide for creators
• Kickstarter, 12 things you must do before launching
• Kickstarter, From funded to delivered: a creator's guide to fulfillment
• Kickstarter Help Center: receiving funds, maximum project duration, who can use Kickstarter, project review

Turn your numbers into a finished campaign page

The PledgeBird Page Builder lays out your Kickstarter page the way top campaigns in your category do: headers, reward cards, specs, stretch goals and shipping tables. Free to build.

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