Orangeville, ON (Jason Mead) If you’ve heard of crowdfunding platforms like Kickstarter or Indiegogo, you might have the idea that they can get you in front of mounds of people, so that if everyone who gets fired up about your concept throws you $20, then you’ll experience a superbly profitable launch.
According to Sally Outlaw, author of Cash From the Crowd, this scenario rarely comes to pass. Instead, you normally need to have an extensive and enthusiastic following already to succeed with crowdfunding.
It’s an enormous amount of work to create a marketing video and written description, think up motivating rewards for various amounts of money, activate social media and other promotions to let folks know about the campaign, and finally fulfil all promises made to your backers.
Outlaw says she’s observed that only 1 to 5 per cent of any fan base respond to a crowdfunding campaign. That’s a discouraging statistic!
The above also goes for attempts to fundraise yourself out of personal misfortune, by the way. According to a study published in Social Science and Medicine, over 90 per cent of GoFundMe campaigns do not meet their goal.