The model is simple: a project creator sets a fundraising goal, deadline, and an optional set of rewards for backers. If the goal’s reached by the deadline, then everyone’s charged via Amazon Payments and the backers get their goodies. If the goal’s not reached, nobody’s charged. It’s all or nothing. If you want to raise money to build an iPhone app, make a run of t-shirts, or print a book, you can do it with absolutely no risk or up-front costs. If there’s enough demand for your idea, you’ll be able to sell every copy before you’ve spent a dime.
Kickstarter aims to let creative people raise money for their projects by getting their fans to help pay for their ideas. The fans, in return, will have exclusive access and rewards. Andy Baio explains it nicely.
Source: waxy.org
