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?