21 October 2012

CROWD FUNDING PORTALS SUCK


So. Two months of indiegogo has failed. I took the time to register ,to write the description and to record a pitch video. I wasted time and I have nothing to show for it. Basically the people from igg give you a platform to get funded, but they don't offer exposure. The indiegogo business model is simple. People try to raise funds, if they are willing to give a percentage to igg they can raise the funds through the igg website. igg don't help you with the promotion of your project unless it is already popular, but if the project is popular then I don't see a reason to use igg. They give you some tips that can be boiled down to "Promote your project!", which you should be able to figure out yourself. So basically after two months of igg I came to the realization that you are better off just placing a donate button on your website and selling swag. There is an exception of course, non technical social projects that aren't associated with a product. Funding for education or medical needs or charity projects.

I don't want to hate on igg just because I didn't get a dime. It really isn't their fault. If you read the funding tips they do say that your best bet is to promote to people you know ( family, friends, other personally interested people ), and they say that it takes about 3 visits to the project page before a person makes a donation. So nag and spam a wide audience repeatedly, igg is an e-begging platform. E-begging is when you ask for money from people through the internet, but in this context don't think about the beggar on the street with just his hand out. This is more a guitar case tips type deal, but still begging. And begging fits better because it is an active process of asking, and if you don't ask you don't get.

So if it isn't igg's fault that I didn't get a single dollar then who's fault is it? It is my fault! And if your project fails it will be yours. For something to get funded it needs to be popular. So you need a good fan base for the project that are already engaged with it, and then you start asking for money. Another thing is that social media may seem like a good way to market such a thing, but even if you have a high Klout score and you have a ton of friends on Facebook and G+ you need to evaluate that resource realistically. On different projects the percentage of visitors that donate varies, for mine it was 0% for some it's 50%, but for the sake of easy math we will take 10%. So lets see what that means. I have 200 people in the social networks, 25% are geeks and would click on a link about Linux, so 50 people visit the campaign page. 10% are 5 people, if everyone donates 5$ you get 25$. What if you want to raise 4000$ dollars. You need 800 people to donate, so 8000 people need to visit the page so I need 32000 friends on Facebook. Do you have 32000 friends on Facebook?

4 comments:

  1. Well, We agree with you, However, If you want to do a CrowdFunding campaign because you think the Internet and Crowd will find
    ,love, back you up and invest in your dream and project, stop right now. The Internet and crowd does not care about you.

    However, if you can reach out to the right crowd of people, in the right way, before time runs out, you just might get lucky.

    For past two years my team ( expert sourced www.crowdfundingmentors.com ) and I have researched the CrowdFunding " best practices " on daily bases . We also filed tested our discoveries to see does the research matches the findings.
    Our Philosophy is based on " pay it forward " . We will be more than happy to look at your Campaign and your soft and and actual Launch and give you our review for free. We also can show you how to " try , try again" and assist you with your promotions world wide... in order for your crowd to finds you . http://www.crowdfundingplanning.com
    What is CrowdFunding? What are Donation, Pre order, Reward, Equity models & how does it work?

    Just think how did we find you? Right place ( Google plus - the private club ) and right crowd like +David Drake ( CF conferences ) , +David Khorram (CF best practices ) an other experts and fund raisers like you... CrowdFunding is more than 2.8 billion this year and 6.7 Billion next year .. Trust me, it works.

    *Now about Luck " - This for you from our Mentor Mr. Plato ( 250 BC )

    .....So far we may be willing to go: We know what to expect. But, no further, for beyond that boundary we are afraid. Our experience makes coward of us. We want its security even if it limits us. We know that many who strike out beyond this boundary are lost. But not all. Some manage it and when we envy them we forget the risk they took. We think that their boundaries have always been so broad and limitless. We forget that they took the effort of pushing them outwards:
    Effort and Risk. Instead, we talk of luck......

    ttp://www.crowdfundingplanning.com

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  2. When the web became popular the consultants crawled out of the sewers to consult businesses about their web presence. Then social media came along and again the consultants came out to consult about social network leverage. And now crowd funding is here and the same assholes came out to help entreprenewbies and startups navigate the maze of marketing. I don't want to be rude but it is obvious why some projects fail and some succeed, your input is most likely useless. But ok, I will give you a chance. Let's have a hypothetical everyman who has interests in a very niche market but has no presence in it. And he wants to enter that market but needs funding. What would be your advice? And don't go for the obvious, we all know the obvious.

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  3. Aristotle said: The best way to learn is by doing it . since the above blog we work hard, learned and helped many start ups and hired professionals ( 10 ) to help us with process . You know banks do not lend, you know VC and shark tanks invest in less than 2% . Then CrowdFunding is the best method . This year is about 5.2 billion . Go to Kickstarter.com find a project close to what you have in mind and then contactus@crowdfundingplanning.com .. This time no bad language OK.

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    Replies
    1. Oh. You make me pick this issue up again, there is going to be bad language!

      Delete

Keep it to the point and not too rude!!!