What We're Learning About Crowdfunding
Crowdfunding is a relatively new business model. It's been around long enough that patterns are beginning to emerge as people experiment with different ideas and methods. Let's list some of those ...
* Free samples sell content. More often than not, people like to know what they're getting before they plunk down their hard-earned money. In a brick-and-mortar store they can just fondle whatever is on the shelves. Online shopping offers a much wider range but you can't always see what you're getting. So vendors are finding ways to substitute by offering videos, excerpts, etc. Crowdfunding involves an exchange between creator and audience, often with the viewers giving inspiration and feedback. Free samples don't just show people what they're buying, they reward participation and held hook viewers into ongoing projects. So look for bits of your work that you can afford to give away.
* Customization adds value. People love being able to get exactly what they want or need. This is actually a very old premise that used to be the norm, before mass production was invented. The economy has just shifted around to make it highly competitive again, by offering better ways to connect creators and shoppers. Often you can capitalize on this to make duplicates, because people may say, "Hey, I want what he just bought." For some types of content, that really reduces your workload.
* Find your niche. Marketing has always advised identifying and meeting unmet needs, but this really comes to the fore in crowdfunding. This business model can be small and nimble, or it can grow with demand. It thrives on connecting creators of unusual goodies to people who aren't fully satisfied with the mass-market stuff. So listen to what people are asking for, and look for places where there are gaps.
* The relationship is part of the process and the product. Traditional marketing of cultural goods has had a low level of interaction. Crowdfunding cuts out most or all of the middlemen and connects creators and fans directly. This connection makes the creative process more responsive, cycles energy back and forth, and generally means people have more fun. It's very different from the "lonely garret" model of creativity. Understand that going in, and plan to work with it.
What are some other things you are learning about crowdfunding?
* Free samples sell content. More often than not, people like to know what they're getting before they plunk down their hard-earned money. In a brick-and-mortar store they can just fondle whatever is on the shelves. Online shopping offers a much wider range but you can't always see what you're getting. So vendors are finding ways to substitute by offering videos, excerpts, etc. Crowdfunding involves an exchange between creator and audience, often with the viewers giving inspiration and feedback. Free samples don't just show people what they're buying, they reward participation and held hook viewers into ongoing projects. So look for bits of your work that you can afford to give away.
* Customization adds value. People love being able to get exactly what they want or need. This is actually a very old premise that used to be the norm, before mass production was invented. The economy has just shifted around to make it highly competitive again, by offering better ways to connect creators and shoppers. Often you can capitalize on this to make duplicates, because people may say, "Hey, I want what he just bought." For some types of content, that really reduces your workload.
* Find your niche. Marketing has always advised identifying and meeting unmet needs, but this really comes to the fore in crowdfunding. This business model can be small and nimble, or it can grow with demand. It thrives on connecting creators of unusual goodies to people who aren't fully satisfied with the mass-market stuff. So listen to what people are asking for, and look for places where there are gaps.
* The relationship is part of the process and the product. Traditional marketing of cultural goods has had a low level of interaction. Crowdfunding cuts out most or all of the middlemen and connects creators and fans directly. This connection makes the creative process more responsive, cycles energy back and forth, and generally means people have more fun. It's very different from the "lonely garret" model of creativity. Understand that going in, and plan to work with it.
What are some other things you are learning about crowdfunding?