Kickstarter is a Web site that enables independent creative professionals to raise funds for lofty commercial projects. Entrepreneurial artisans ask for pledges at fixed price points in exchange for tiered thank-you gifts-for example, a handwritten note for a $1.00 pledge, a copy of the final product for a $25.00 pledge, and a home-cooked dinner for a $10,000 pledge. After being approved for a Kickstarter campaign, an entrepreneur must meet or exceed her total fundraising goal within a set timeframe. If she cannot reach her goal, she loses all of the funds pledged to that point. Everything from board games to luxury underwear lines to stand-up comedy tours have been successfully funded through Kickstarter, as artisans have appealed to friends, family, and complete strangers from around the world to endow their dreams.
Amanda Palmer, lead vocalist and pianist of offbeat rock group The Dresden Dolls, became the fastest ever entrepreneur to reach a Kickstarter goal in May 2012 when her campaign to finance a new independent solo album topped $100,000 in just four hours. Palmer was able to raise more than $250,000 in the first day alone after writing about the campaign on her blog; posting it to Facebook; and tweeting about it with her husband, author Neil Gaiman, to their combined 2.25 million Twitter followers. According to Reuters finance blogger Felix Salmon, "While Kickstarter was originally embraced by the undiscovered and impecunious, its greatest potential, in the music industry, is actually with established acts that already have a large following."
Source: Instructor Manual, Chapter 19, page 18
- After reading both the case study and Chapter 19, respond to the following questions in essay format.
- Your essay must include an introduction paragraph, a main section consisting of two or more paragraphs, and a conclusion paragraph. You must address all relevant parts of each question. The essay must be at least 200 words in length.
Your essays must include cited materials from the textbook at a minimum. Additional resources may be used. Make sure to cite any references you use. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number. Be sure to review the grading matrix before you submit your essay.
Case Study Questions
- Provide a brief summary of the case, including the key facts and business issues discussed in reference to the power of social media.
- Based on the details provided in the case, in your view, how was Amanda Palmer able to reach her advertising goal in such a short time? Provide details to support your analysis.