Crowdfunding
The Basics
Still have questions about RocketHub's Crowdfunding system?
Launching a Project
Fueling a Project
The Basics
What is Crowdfunding?
Crowdfunding (aka micro-patronage) is a new way to support people and endeavors.
In ages past, wealthy patrons would commission works of art, new research, or inventions from the recognizable artists, scientists, and entrepreneurs of the day. Crowdfunding is the same idea, but rather than looking for a large contribution from a wealthy patron, artists, scientists, entrepreneurs, and philanthropists (Creatives) look for small contributions from lots of people.
What is RocketHub's All & More™ fundraising system?
There are different schools of thought in crowdfunding. The most common are:
- "All-Or-Nothing" — the Creative is required to reach a financial goal in order to unlock the contributions
- "Keep-It-All" — the Creative is allowed to access the contributions regardless of the financial goal
RocketHub has blended these two ideas, to create a new paradigm. As a Creative, here is how RocketHub's All & More™ system will work for you:
- All — Keep all the money you raise (standard fees apply). Aim high with the confidence of a safety net.
- More — Unlock additional perks. If you reach or exceed your project's financial goal, you receive a bonus (see fee structure below).
What does it cost?
It's free to start.
There is no charge to join the RocketHub community and to launch a project of your own!
4% RocketHub Fee
RocketHub charges 4% of the money you raise, if you reach your financial goal. (If you do not reach your financial goal the fee is 8% of the total funds raised). This structure encourages you to set a reasonable financial goal, work hard, and publicize your project.
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4% Transaction Fee
Credit card processing companies charge between 3 — 5% (on average) per transaction. The charges spike dramatically for smaller transaction amounts, but RocketHub aggregates and averages all transaction fees in order to minimize the charge to each Creative.
Does RocketHub own a percentage of products or ideas developed through RocketHub?
Nope. Creatives maintain 100% ownership of their projects, products and ideas.
Launching a Project
Who can launch a project on RocketHub?
RocketHub is the world's funding machine and allows projects that are legal and in good taste. RocketHub is a great way for entrepreneurs, scientists, artists, composers, designers, educators, filmmakers, inventors, musicians, performers, philanthropists, politicians, programmers, teachers, writers and more, to bring their projects, events, and dreams to life. No invitation is necessary. You can launch now. If you have a funding project or worthwhile endeavor, and you need money to complete it, RocketHub is here to help.
What should I ask my Fuelers to do?
- Come to RocketHub and check out your project
- Become a Fueler. Fund your project
- Spread the word. Let everyone they know about your project
- Become a Creative. Launch a project
- Become a Fan of RocketHub on Facebook
- Follow RocketHub on Twitter @RocketHub
Are financial goals and time limits required?
Yes. Every project must have a financial goal and time limit. Financial goals can be any whole dollar amount. Time limits can range between 15 — 90 days.
Are rewards required?
Yes. A series of interesting and valuable perks is vital to the success of every project.
Can I change my financial goal?
No. Once your project launches, your financial goal cannot be changed.
Can I change my time limit?
No. Once a project launches, the time limit cannot be changed.
Can a project be edited after launching?
Yes, you can edit the following content after launching:
- Project description
- Video and images
- Rewards (add new ones)
- Your profile
The only things that cannot be edited after launch are:
- The funding goal
- The project deadline
- Rewards that have already been established.
Can I run more than one project at the same time?
Yes, but… you probably shouldn't. We discourage Creatives from running multiple projects at the same time, as this can distract Fuelers and dilute support. Focus on one and make it great!
Can I split one large project into a few smaller projects?
Yes, but… you may find that your audience becomes fatigued by consecutive projects. Make sure to think through the associated issues first.
Do I have to live in the US to launch a project?
Nope. RocketHub encourages Creatives to post projects from all over the world.
Can projects raise more money than their financial goal?
Yes. There is no limit to the amount of money a project can raise.
What can be offered as a reward?
Rewards can be nearly anything (so long as they are legal). Most common are copies of the finished product (CD, DVD, book, research report), or creative experiences/services (lessons, invitations). For ideas of what you can offer as rewards, click here.
Please note: Offering the following is not allowed:
- Equity (aka ownership)
- Revenue share
- Investment opportunities
- Entrance into lotteries, raffles, or sweepstakes.
Who is responsible for making sure Creatives deliver rewards?
Each Creative is responsible for delivering the rewards as promised in his/her project. Please note: Because projects are primarily Fueled by friends, family, and fans of each Creative, there is plenty of social pressure to keep Creatives honest. RocketHub is a platform, like Amazon or Ebay. The RocketHub community will enforce honesty and transparency.
Fueling a Project
Why do people Fuel projects?
Fuelers choose to make contributions for different reasons, but they often fall into one of three categories:
- The Committed
- The Inspired
- The Shoppers
The Committed are devoted to supporting an individual Creative. These are preexisting friends and family who will support the Creative every time, regardless of the project. Parents or existing fans are often a good example.
The Inspired watch the project video, or read the project description and decide that the Creative is up to something great! They are not committed to Fueling when they first find the project, but the Creative inspires their support.
The Shoppers are primarily interested in a specific reward. They may find it super cool, or just a great value, but the reward is what hooks them. After all, RocketHub Creatives are offering a lot of smart, fun, cool and creative products, benefits, and experiences.
What is RocketFuel?
RocketFuel is RocketHub's very own virtual currency. $1 buys 1 Liter of RocketFuel. RocketFuel is kept in each Fueler's account, and can be transferred to any project the Fueler chooses.
Is RocketHub an investment vehicle?
No, RocketHub is not an investment vehicle (and it's not a charity either). The Creative maintains 100% ownership of their project. In exchange for their contributions, Fuelers are offered rewards in the form of cool stuff and experiences. (See details on each project page.)