Why Kickstarter was started

Kickstarter was started to say that there’s all these projects that would get done if we knew in advance that people would go and buy it.

That I want to make a record album,  if I just knew that 1,000 fans would buy it, I could easily have the confidence to make it and if they all put up $50 up front I could actually walk into the recording studio, we’re done.

So kickstarter said here’s a platform, it’s very simple, go to your fans and say this it what I will make if you put up enough money and if you don’t you’ll get your money back.

Now once again, on the www (world-wide-web)  people confuse the mechanics to do something with what actually makes it work.

Kickstarter is irrelevant if you have been audience building and you have an audience you can reach, you can do it without kickstarter because they’re all these kickstarter clones, so kickstarter almost adds no value to someone who has an audience.

For some projects 4% of the money that comes in come from kickstarter and the 96% comes from people who were sent there through a link, so it’s not like kickstarter has this community of eager philanthropist, they just have this piece of software that let’s people coordinate demand with supply.

Now this is really different from the days of  Clive Davis . Clive Davis goes to all these radio stations and says every week  I’ll give you a 2-hour radio show, we’ll split the commercials, half the commercials you’ll sell and half the commercials I’ll sell, everybody wins.

And for years,  years, and years Clive made millions of dollars making a radio show. Now who has the power the musician or Clive? The answer is Clive has the power. Why does Clive has the power? Because he has a relationship with the radio stations and the radio stations have a relationship with the listeners, so if Clive wants to make you famous he can, but the artist has no power at all.

Kickstarter says hold on a minute, If you’re an artist and you already have a relationship with your reader, listener, or fan, we will let you go straight to that person leaving Clive out of the equation because you can publish yourself.