5 Benefits of Crowdfunding

The important thing to remember about crowdfudning is that money is just one of the benefits if offers. So if you're wondering if crowdfunding is right for your project, read on, and let me know if you have any questions. If there are other benefits, I'm missing, please share! Always happy to add more.

Benefits of Crowdfunding

1. Money (that's obvious). Enough said. 2. Marketing (In a recent conversation with GoGoSlava, Ted Hope called this "the Power of $1") When someone validates your idea by putting money down, they've also just become a fan… and perhaps an evangelizing one too. Thus a great way to market your project or creative endeavor is to ask for funds… similar to how asking for favors is a great networking technique. In the world of twitter, facebook, google buzz, etc. it's now super easy for fans to turn into promoters with the click of a few buttons. 3. Market traction (using data to show you have fans & customers). We know of projects using IndieGoGo to show other interested parties (e.g. investors, partners and distributors) that they have a growing fanbase. So crowdfunding a percentage of your project's cost can help attract funds from other more traditional sources looking to minimize risk. 4. Monetization "outside the copyright." By offering perks like personalized or limited experiences and items (e.g. signed copies of your book or film, special access, invites to a party or event, etc.) that can't be offered once the project is complete, crowdfunding enables you to monetize the experiences around the project, and not just the end-product itself. 5. Mojo (I'm just calling this Mojo because I liked the "M" trend). What I mean by this is that crowdfunding allows anyone to be a patron. Patronage is no longer just for the rich. Kevin Kelly names "Patronage" as one of the 6 Generatives that will help creators make money in an age where anything copyable is free. You can't copy the feeling of knowing your support made something happen. That's special, and at our core people really do like to make a difference when we can. Crowdfunding gives everyone that opportunity.