CROWDFUNDING

Crowdfunding is a relatively new concept, that allows for small businesses and individuals to gain fans and raise money for their projects.

You’ve probably heard of sites like Kickstarter or IndieGogo; these are funding platforms. You post your project (let’s say a book you want to make) and people “donate” money to your project. In exchange for their money, you offer “rewards” in the form of digital copies, printed books, signed books, etc. If you don’t have any start-up money, it’s a great way to raise funds.

The trick to the project head is that you have to post a funding goal, let’s say $2,000, and a deadline, let’s say 30 days. Funding is all or nothing. If you haven’t raised the needed $2,000 in those 30 days, then none of the money changes hands and you’re back where you started. Kickstarter and IndieGogo make their money by taking a small cut of the successful projects’ intake. (Edit: IndieGoGo, however, lets you keep whatever money you earn, but their take from it is higher if you don’t meet your funding goal.)

People and companies have used crowdfunding to realize all sorts of projects, including: books, films, designs, buildings, submarine trips, markets, music albums and the list goes on and on.

Here is my question to you:

I’m really curious to know what you think and how you feel about crowdfunding, and we’ll revisit this post later, with your comments and votes.

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For more information on how to start your own project using crowdfunding, click here.

For information on crowdfunding options and how successful each platform is, click here.

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Comments
4 Responses to “CROWDFUNDING”
  1. Thought that with IndieGoGo, you did get your money even if you didn’t reach funding (that was its difference to Kickstarter)?

    My biggest issue with crowdfunding has been the lack of follow-though. Half the projects I’ve donated to haven’t sent their rewards more than 6 months after reaching full funding. Makes me less likely to support future projects.

    • Jess Smart Smiley says:

      Ah! You’re right, Colleen. Thanks for pointing out IndieGoGo’s spin on crowdfunding. I’ll make a note of it above.

      I’ve heard from several people that they’re still waiting for their rewards from projects that were funded months and months ago. I know that Kickstarter will shut down your account, making it impossible to start another project, if they get too many complaints about things like sending out rewards, or for not fulfilling their promises. I don’t know of anything in place that would get you your money back, though. Having completed a successful Kickstarter campaign of my own, however, I can say that once the deadline closes and the money is transfered to your account, you have to work fast in putting the money to use. I had to send out my print and binding orders the day the money went through, then I labelled and filled packages with other goodies while I waited for my books to arrive from the printer. I stuffed the packages in the next few days and sent ’em out. Even though I worked as quickly as I could, there were people who had donated at the beginning of the project and had to wait another 60 days just for the project to close.

      You would know more about this than most people, I would think, with all of the books and projects you’ve printed and sent out. Which reminds me…I have a few questions to send your way. Thanks for the comment.

  2. Arno Smit says:

    I’ve backed numerous projects on FundedByMe, even if I am the lead developer, and always received the rewards.

    We tend to do our due diligence before we approve projects, but have a different strategy.

    min and max goal, if the minimum goal is not reached, the money gets returned, meaning you/the project are not interesting or you are not spreading the word.

    we focus on glocally (global projects, local appeal through translated versions and the ability to raise in your own currency)

    The FundedByMe Team
    http://fundedbyme.com

  3. Alice says:

    sounds interesting. am curious to know more about it.

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