I guess I've only speculated (not invested) in projects where greed was involved so this kind of concept is new to me.
Thanks,
Pete
--- In iPad@yahoogroups.com, "David H. Bailey" <dhbailey52@...> wrote:
>
> On 8/29/2013 7:56 PM, petefromflorida wrote:
> > I'm still trying to swallow the whole concept. I give money to
> > someone that has an idea but it hasn't been designed or manufactured
> > yet. If it gets designed, patented and manufactured then all I get
> > is a lousy discount or maybe a free item? Have I got it right so
> > far? Pete
> >
> [snip]
>
> No you don't have it quite right yet.
>
> These projects are supposed to be already designed and just in need of
> up-front money to get into the manufacturing process.
>
> You don't give them gobs of money -- you are simply paying for a product
> in advance. You don't pay extra.
>
> And if the project doesn't reach a certain threshold of people who place
> similar early orders, you aren't charged so you keep your money.
>
> You only spend the money once the project reaches that threshold which
> guarantees the project will move forward.
>
> But you're not paying for the design and the patenting process -- the
> product is already designed and ready to be manufactured and marketed.
>
> I participated in one such project, the PowerQube which was mentioned on
> this list. It is in the final steps of creating the molds and there is
> a definite clearly outlined time-table in place, with the shipment of
> the PowerQubes to take place the 4th week in September.
>
> I just got in on the ground floor and bought one in advance for $35
> (shipping included) and currently they can be purchased for $39.99 plus
> $10 shipping and handling. So I saved $15 by putting the money up
> early, thus allowing the company to have capital with which to get the
> molds made and set up the production.
>
> For two other projects I paid up front for CDs (one each from 2
> different bands) but for my willingness to pay early to help them get
> the money for the final professional mixdown and the manufacturing of
> the CDs I got extra bonus tracks to download which people who bought the
> disks (or the digital audio files) had to pay extra to get.
>
> For most such projects a person can contribute more than the minimum to
> purchase the product, and in those instances they might get extra copies
> of the product or they get their names printed in the material that
> ships with the product or some other such public recognition.
>
> --
> David H. Bailey
> dhbailey@...
> http://www.davidbaileymusicstudio.com
>
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