The core objective of crowdfunding is often misconstrued to be about raising money. Well, as the title suggests one aspect of the process is financial, but the more important element is building a community of people interested in your project.
It is a process that introduces you to potential supporters, fans, and collaborators. In many cases people who can elevate your project to the next level. For funders, the interest is often deeper than giving you money - it is an indication of a shared belief, trust in you as an individual and your ability to deliver the dream you've just sold to them.
It's not uncommon to suddenly find yourself in a position where you have to meet the expectations of 'the many', and the spotlight is on you! Pressure? It shouldn't be, here's why.
Some see crowdfunding is a two edged sword - raise money and get fans? True, but there is another angle I'd like to explore. How about using the crowdfunding response to demonstrate the potential of your project? It shows how in-tune you are with the target audience, and most importantly this response should place the audience at the heart of your decision making.
Let me explain - crowdfunding should be about exposure, word of mouth, buzz, eyeballs and interest. It's a different currency, and it's better than ratings or even focus groups. You have the interest of an audience and they have helped get your project off the ground - that should count for something!
When someone puts a price tag on your project or wants a piece of your action, you'd be well advised not to forget your core audience and risk alienating them. Your funders will always be loyal and will even give you a better bargaining position, if you ever need one. We are at a time when you can say "People Power" counts for something - you have proof of concept, it's so appealing that the public is willing to help fund a dream into reality.
Big companies pay a fortune for this kind of buzz, don't lose focus - your loyalty lies with your grassroots funders, keep them happy and you will shine.
Wednesday 16 November 2011
Crowdfund My Soul (Pt 1) Remix
The past few months have been extreme, they have introduced me to a new level of humility, gratitude, and have given me confidence to launch a new project.
At first the idea of crowdfunding sounded like fun, but once you start asking friends for money, you soon realise how different it is from asking for plain support. In true honesty, you are asking someone to 'kick-in' cash for a project that is very often in early stages of development, with hardly any tangible product to show.
It's a case of trust and faith, many people won't see this early stage in the evolution of your killer project as something serious enough to give you sleepless nights, and trust me it will.
The early adopters of most crowdfunded projects are the 'friends and family' - not only do you already know their circumstances, but you're also compelled to ask for their help. I mean, who knows you better, right?
Family is a sure bet, but friends... Now that's another thing all together. You ask "Hey! Fancy 'kicking-in' some bucks to help fund the project I've been telling you about?" Sometimes the support doesn't lead to a donation, friends forget, cash is tight, they often really don't understand the project or process. Then things get embarrassing, you ask yourself whether it's worth asking - again.
To confuse matters, money comes in from some unknown sources, you feel overwhelmed with gratitude - 'who are these people, and how can I possibly thank them enough for trusting in me?' Some friends go one further and spread the word, becoming ambassadors of your project. Some even step up and introduce you to new sources of support and finance.
Why am I writing this? Well, I am now at the more serious stage of the evolutionary process - I have raised some funds, in fact almost half of what is required, but time is almost against me. If I don't meet my target, penalty charges are applied and we lose a small percentage of the money that's been donated. That's how crowdfunding works.
I've been in front of my computer for the past 12 hours, emailing, calling, chatting and sounding enthusiastic about my project. I feel it's time to take a break. My dear friend Reverend Billy Talen is preaching to the Occupy London Stock Exchange group outside St Paul's Cathedral - it may be time to confess my sins, purge my soul, reacquaint myself with the world outside.
Here's a link, just in case you'd like to know more about my project - it's called Clockwork Watch.
At first the idea of crowdfunding sounded like fun, but once you start asking friends for money, you soon realise how different it is from asking for plain support. In true honesty, you are asking someone to 'kick-in' cash for a project that is very often in early stages of development, with hardly any tangible product to show.
It's a case of trust and faith, many people won't see this early stage in the evolution of your killer project as something serious enough to give you sleepless nights, and trust me it will.
The early adopters of most crowdfunded projects are the 'friends and family' - not only do you already know their circumstances, but you're also compelled to ask for their help. I mean, who knows you better, right?
Family is a sure bet, but friends... Now that's another thing all together. You ask "Hey! Fancy 'kicking-in' some bucks to help fund the project I've been telling you about?" Sometimes the support doesn't lead to a donation, friends forget, cash is tight, they often really don't understand the project or process. Then things get embarrassing, you ask yourself whether it's worth asking - again.
To confuse matters, money comes in from some unknown sources, you feel overwhelmed with gratitude - 'who are these people, and how can I possibly thank them enough for trusting in me?' Some friends go one further and spread the word, becoming ambassadors of your project. Some even step up and introduce you to new sources of support and finance.
Why am I writing this? Well, I am now at the more serious stage of the evolutionary process - I have raised some funds, in fact almost half of what is required, but time is almost against me. If I don't meet my target, penalty charges are applied and we lose a small percentage of the money that's been donated. That's how crowdfunding works.
I've been in front of my computer for the past 12 hours, emailing, calling, chatting and sounding enthusiastic about my project. I feel it's time to take a break. My dear friend Reverend Billy Talen is preaching to the Occupy London Stock Exchange group outside St Paul's Cathedral - it may be time to confess my sins, purge my soul, reacquaint myself with the world outside.
Here's a link, just in case you'd like to know more about my project - it's called Clockwork Watch.
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