Kickstarter Fulfillment Companies Make Things Easy
There is little argument over the positive aspects of crowdfunding platforms like Kickstarter. In the past, entrepreneurs had to secure investment by traditional means like SBA loans, angel investments and bank loans. All of these sources required a certain amount of investment of your own money in order to be secured, plus an extensive process of application. Angel investment was probably the best method of securing capital by inexperienced entrepreneur due to the fact that these types of investments are done by individuals or groups of private citizens who specialize in risking their money to help businesses be born or expand. The drawback to angel investment is that along with added risk comes added reward, and if the venture succeeds you can rest assured that the angels expect to be repaid and then compensated handsomely for their risk.
Crowdfunding became popular over the past few years as an alternative method of raising capital for a venture. By pooling small amounts of money from large groups of people, the risk is spread out and therefore there is not such a need of being heavily compensated. Most crowdfunding platforms work on an "investment in exchange for products" methodology, where you are essentially purchasing the product that is being advertised at a significant discount in order to raise money for the actual product to be created. You are purchasing something before it has been made, and your money is used to make that product. This gives entrepreneurs an ability to create products without actually creating the business structure that would typically surround it, and while that may seem like a good thing it actually can become quite problematic. An entrepreneur who wants to manufacture a product may secure his investment and be contracted to provide products as compensation, but a successful Kickstarter campaign may mean the delivery of thousands of units to customers and no infrastructure to make that actually happen. Luckily, there are Kickstarter fulfillment companies that can take on that responsibility.
A Kickstarter fulfillment company is a specialized third party who possesses warehouse space and a staff. This company will receive the Kickstarter purchase list and then use their own resources to fulfill the orders in exchange for a small fee per order, as well as warehousing fees. This enables thousands of units to be able to be fulfilled without the owner being the one packing the boxes, and also assures that the orders will be received by customers on time and packaged correctly. If you are involved in a Kickstarter campaign, it is a good idea to look into the services of a specialized fulfillment company before the campaign goes live.