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@davidbaileymusicstudio.com
http://www.davidbaileymusicstudio.com
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