Apps, games, education, health. These are just a few things that are being crowdfunded through the power of the Internet and the communities within it. Many of you have asked me what my thoughts are on this booming business. Here they are!
The impossible, made possible
For many, crowdfunding is a path to success. An idea that may have been thrown in a drawer can now be put before a panel of millions, and if it's truly the brilliant idea you imagined, the community will help make it a reality. Two great examples are The Pebble smartwatch and the Veronica Mars movie. Both were funded on Kickstarter by people like you and me.
Recently, however, a potato salad was funded for over $50,000. Yes, you read that correctly. Over 6,000 people threw money at a guy wanting to make the perfect potato salad. Incidents like this are rare, but when they happen, people take notice and can give crowdfunding a bad name.
Asking a large group of people for money is an awkward thing, and isn't something that should be taken lightly, and certainly shouldn't be done to make a fucking potato salad.
Using it for good
If you have a great idea for a product that will change the world, throw it on Kickstarter! If your company has run out of funds during development of a new game, let the community help! These are great examples of how crowdfunding should be used.
A touchier subject is campaigns that don't offer return to backers. Illness is a good example. Many have created crowdfunding campaigns to raise money for illness, whether for themselves, a family member, or a pet.
While I don't personally have an issue with this, if you're thinking about raising money for personal reasons, don't be surprised when people push back.
Micro-funding
A newer addition to the crowdfunding scene, is 'micro-funding', which has exploded thanks to services like Patreon. Built for content creators, Patreon allows loyal viewers to contribute either on a monthly, or per-creation basis. Unlike traditional crowdfunding, the purpose isn't to acquire a large sum of money at once, but it helps a creator fund their on-going content well into the future!
Provide value
As we've established, asking for money is awkward. No matter how amazing your idea or content is, there will always be those who push back. To avoid coming across as a 'sell out', make sure you're providing explanation and value within your campaign.
- Why are you raising money? Will your content improve?
- What are you providing to backers?
Supporters want value. They want to know their money is not only helping you reach your end goal, but that they'll be getting something in return. Whether this be a limited edition of the product you're creating, early access to your content, or a simple personalized "thank you", if you're thinking about starting a campaign, make sure you're thinking about your backers, as well!
What are your thoughts on crowdfunding? Leave a comment below, or Tweet @IceflowStudios