CrowdFunding - How Does It Work? | Warrior Forum - The #1 Digital Marketing Forum & Marketplace

11 years ago

Not so easy my friend... you have to have a real great idea to promote to rise some funds.

btw, take a look at this site for a good point to start
Welcome | RocketHub

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ttenner

11 years ago

Hello MikelMRaz,

I have a one off experience with Crowdsourcing. I raised funds for the Sing Me Something Android and iPhone app on AppBackr (Sing me Something App (Games) on appbackr)

I raised close to $4500.

My experience:

I was very impressed but the feedback and the number of people backing my idea
Initially everyone signs up to back the idea but when the target was achieved it turned out that not all of them really parted with their money, so we didn't get the full amount
In my case we cannot just get away with the money. The middle man (Appbackr) in this case had to be added to the iTunes account and they receive all the money first - I'm no longer a beneficiary, thus the income goes first to them (which is acceptable - but read the next point)
Appbackr has access to all income. Legally (in our case) we only need to return the money that is a direct income from the App Sales -> AppBackr does also get the income from advertising and in app purchases - we need to wait on a monthly basis for the money to be returned to us. (Which is painful)
Ensure that you communicate with your crowd regularly - it is of their interest that your product does well - and use this to make them promote your product
- In addition to the financial aspect use their influence to become more successful - it is not just the money you are after!

Let me know if you have any more specific questions

Thomas

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just10bucks 11 years ago

Thanks Thomas,
That was great info.
James
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jking1

11 years ago

Originally Posted by ttenner

Hello MikelMRaz,

I have a one off experience with Crowdsourcing. I raised funds for the Sing Me Something Android and iPhone app on AppBackr (Sing me Something App (Games) on appbackr)

I raised close to $4500.

My experience:

I was very impressed but the feedback and the number of people backing my idea
Initially everyone signs up to back the idea but when the target was achieved it turned out that not all of them really parted with their money, so we didn't get the full amount
In my case we cannot just get away with the money. The middle man (Appbackr) in this case had to be added to the iTunes account and they receive all the money first - I'm no longer a beneficiary, thus the income goes first to them (which is acceptable - but read the next point)
Appbackr has access to all income. Legally (in our case) we only need to return the money that is a direct income from the App Sales -> AppBackr does also get the income from advertising and in app purchases - we need to wait on a monthly basis for the money to be returned to us. (Which is painful)
Ensure that you communicate with your crowd regularly - it is of their interest that your product does well - and use this to make them promote your product
- In addition to the financial aspect use their influence to become more successful - it is not just the money you are after!

Let me know if you have any more specific questions

Thomas

Thomas, thanks for the info. It helps me to raise money for my next big project.

Thanks a lot.

Thanks
1 reply

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robdoby 11 years ago

Originally Posted by jking1

Thomas, thanks for the info. It helps me to raise money for my next big project.

Thanks a lot.

Make sure to choose the right platform for your needs. For instance, Kickstarter is currently U.S. & Great Britain only. Indiegogo is pretty much the civilized world. Additionally, each platform has rules about the types of projects they will list (artistic, apps, hard goods, non-profit) and have different fees based on project style (fixed raise vs. flex). Read the FAQs on any site that you are considering. And do check out the Crowdfunding University info at RocketHub for some very good info.
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Robert Dobyns
CEO - Conzortia Business Funding, Inc.
Conzortia.com
Join my LinkedIn Group of 2700+ marketers
Ask me how I started a business with $100 and built it to $1.5 million in annual sales using crowdfunding.
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John Jonas Phil VA

11 years ago

Usually when someone donates to a crowdfunding effort, the recipients are contractually obligated to provide something (prototypes or merchandise related to a prototype) to the donors. Basically, the donors are paying for merchandise and that merchandise have to be ready as soon or immediately after the donation is made. And the group looking for funding have to compete for a slot on that platform. They have to make several pitches prior to getting the slot, in addition to pitching to their audience. It's really a lot of work if you're only out to scam people.

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mikelmraz

11 years ago

So, if the slated amount is not reached, does the project go ahead?

Also, if the amount raised is much more than the original stated amount, what happens then?

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mikelmraz

11 years ago

Thanks for the info guys. Definitely something worth looking into.

Thanks

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Sumit D Thakur

11 years ago

Yes it works for some campaign . Mostly people raise fund for tje people suffering form cancer or people having some great idea .
So if you want to get money from tha you need to have a solid cause .

Thanks

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skylineapps

11 years ago

How is everyone meeting their working capital needs? I know most are doing affiliate marketing part time, but it would be nice to be able to have more financial resources to grow.

Thanks
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robdoby 11 years ago

My friend, Brian Meece at Rockethub has a very nice educational primer for those interested in crowdfunding. Success School | RocketHub
The main thing to remember is that it all starts with YOUR crowd (there is no mystical crowd of funding angels hanging out waiting to fund projects). So you will have to build and work your social networks prior to a crowdfunding effort. And then encourage your contacts to share for you.
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Robert Dobyns
CEO - Conzortia Business Funding, Inc.
Conzortia.com
Join my LinkedIn Group of 2700+ marketers
Ask me how I started a business with $100 and built it to $1.5 million in annual sales using crowdfunding.
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Devin X

Banned 11 years ago

It's not easy, and you shouldn't use it as a FOR PROFIT vehicle. Crowdsourcing is really for people trying to raise money for non-profit projects, but also for-profit projects that don't have exposure to angel investors/venture capitalists.

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robdoby

11 years ago

Originally Posted by TheRealDudeman

It's not easy, and you shouldn't use it as a FOR PROFIT vehicle. Crowdsourcing is really for people trying to raise money for non-profit projects, but also for-profit projects that don't have exposure to angel investors/venture capitalists.

Correct. Equity-based crowdfunding has been legalized but must *first* undergo rule-making by the SEC & FINRA as well as a certain application & vetting process for the platforms involved, like Conzortia.

This is process is expected to be completed by year's end 2013. Then, equity-based (selling stock in one's endeavor) will be a reality, but limited to accredited platforms like Conzortia

Kickstarter (the largest platform) has already said that they will not be getting into the equity space.

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Robert Dobyns
CEO - Conzortia Business Funding, Inc.
Conzortia.com
Join my LinkedIn Group of 2700+ marketers
Ask me how I started a business with $100 and built it to $1.5 million in annual sales using crowdfunding.

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PeterKnight

11 years ago

Originally Posted by TheRealDudeman

It's not easy, and you shouldn't use it as a FOR PROFIT vehicle. Crowdsourcing is really for people trying to raise money for non-profit projects, but also for-profit projects that don't have exposure to angel investors/venture capitalists.

You seem to be contradicting yourself in the span of 2 sentences. Impressive.

I do worry about people who are looking for a quick buck and see crowdfunding as a vehicle for that. But to do well you need a good idea, a convincing enough pitch and a network.

What I love about the crowdfunding model is that you have to establish that there is a demand for your project/product/service in advance.

Thanks
1 reply

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robdoby

11 years ago

Originally Posted by PeterKnight

You seem to be contradicting yourself in the span of 2 sentences. Impressive.

I do worry about people who are looking for a quick buck and see crowdfunding as a vehicle for that. But to do well you need a good idea, a convincing enough pitch and a network.

What I love about the crowdfunding model is that you have to establish that there is a demand for your project/product/service in advance.

Crowdfunding can also VALIDATE your concept [or not]. And that has great value in itself.

Thanks

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Robert Dobyns
CEO - Conzortia Business Funding, Inc.
Conzortia.com
Join my LinkedIn Group of 2700+ marketers
Ask me how I started a business with $100 and built it to $1.5 million in annual sales using crowdfunding.

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zardon

11 years ago

What I'm looking for is finding out how these indies, companies, app makers, especially those making physical or computer games/apps manage the fan-base, community, backers?

For example, do they use like a CRM tool, some kind of private forum? I've seen startups use a private invite-only beta. But I'm really not sure what they do.

I'd like to ensure that if I were to go on Kickstarter the backers are always in communication with the app/product's production.

Thanks for now

Thanks
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robdoby

11 years ago

Originally Posted by zardon

What I'm looking for is finding out how these indies, companies, app makers, especially those making physical or computer games/apps manage the fan-base, community, backers?

For example, do they use like a CRM tool, some kind of private forum? I've seen startups use a private invite-only beta. But I'm really not sure what they do.

I'd like to ensure that if I were to go on Kickstarter the backers are always in communication with the app/product's production.

Thanks for now

Project owners can communicate with their backers, via the crowdfunding platform messaging system, normally, as well as posting updates to project status. Managing the allocation/distribution of premiums (promised rewards) after the campaign is over is up to the project owner and there are as many ways to facilitate that process as there are CRMs. There are also a few startups that have sprung up to handle management & distribution of the rewards (for a fee of course).

Thanks

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Robert Dobyns
CEO - Conzortia Business Funding, Inc.
Conzortia.com
Join my LinkedIn Group of 2700+ marketers
Ask me how I started a business with $100 and built it to $1.5 million in annual sales using crowdfunding.

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nitesh

11 years ago

Start with Kickstarter if you are from US

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Danit98765

11 years ago

Hi,
I really believe that crowdfunding is the future of finance but it's not that easy. You should have a great idea and convincing story that will make people choose funding your project over others.You also must do an excellent marketing work and spread the word about your project.
After you reach your goal and get the amount you need you can withdraw the money by providing your account details and the money will be deposited into your bank account few days after.

Good Luck!!!

Thanks

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mlhearing

11 years ago

So . . . you want people to just give you money--me too.

It'll be great. Let's just tell 'em we got some BS idea that'll make lotsa money,okay?

Thanks
1 reply

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robdoby 11 years ago

Originally Posted by mlhearing

So . . . you want people to just give you money--me too.

It'll be great. Let's just tell 'em we got some BS idea that'll make lotsa money,okay?

Happens everyday. Pebble Watch raised $10 MILLION on Kickstarter for their "BS" idea. Now that's thinking & growing rich!
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Robert Dobyns
CEO - Conzortia Business Funding, Inc.
Conzortia.com
Join my LinkedIn Group of 2700+ marketers
Ask me how I started a business with $100 and built it to $1.5 million in annual sales using crowdfunding.
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CrowdFunding - How Does It Work?

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