understand the importance of crowdfunding – WAU
Imagine that you have a great idea for a game, but you have no money to start developing the game. Or he had a sensational insight into the script for a film, but he is sure that no investor would bet his chips on the production. Sad, isn’t it? Because until some time ago, great musicians, […]
Imagine that you have a great idea for a game, but you have no money to start developing the game. Or else there was a insight sensational for the script of a film, but he is sure that no investor would bet the chips in the production.
Sad, isn’t it? For until some time ago, great musicians, authors, directors and even inventors went through this same problem.
And that’s when crowdfunding came about, a web-based financing model which has been helping several creatives around the world to bring their projects to life.
Never heard of it? Well then, my friend, know that maybe that big idea of yours is still standing in the drawer for no reason.
Want to see? So come with us and get to know a little more about this crowdfunding.
First, what is crowdfunding?
Popularized thanks to the growing use of the internet, the term crowdfunding in London means “crowd funding”, or crowdfunding, as it is best known in these parts. A type of business model where people come together to finance a particular project, sometimes in exchange for some kind of return or sometimes just for the pleasure of helping it to come to life.
Only those who think this idea is new are very wrong: even before there was Internet and even electricity, the author Alexander Pope already sought help from crowdfunding to try to translate some London poems into English. This back in the 18th century.
However, it is clear that the arrival of our beloved internet helped a lot by facilitating the connection between those who have the idea and those who are willing to pay for it – and also the payment via credit cards and bankline services.
But to better understand this part of the payment, we first need to understand how crowdfunding actually works.
How does this type of financing work?
Well, the idea here is very simple: first you create your campaign online, most of the time through some platform – we’ll talk about it later. In it you give information about the project, say how much you will spend to produce it, how long it will take to get ready, how people can help and what they can earn in return for that funding.
If everything works well, after that just put the campaign on the air, start the timer and watch to see if people are interested in your idea or not.
The benefits of crowdfunding
Still wondering if crowdfunding is really a good idea for anyone who wants to put a personal project on the street? So let’s take a closer look at why it is such a great idea.
One of the main benefits for those who place a project in a crowdfunding campaign is this: market proof.
But what does it mean? Simple: it means that if you have doubts whether your product has a chance of doing well in the market, this is where they are taken, after all, if people say that they would pay to have their idea in hand it is because it has a large market offer.
Another benefit of crowdfunding comes from the fact that you know exactly how many products should be manufactured in a first run or version, since only those who paid will receive the item.
Another benefit of the crowdfunding model is more directed at those who have a good business idea and not necessarily a product.
This benefit is called Equity crowdfunding, and in fact it is more of a crowdfunding model where entrepreneurs looking for some type of investment can register on platforms behind small investors.
Through it, those looking for small financial support (like one hundred thousand reais, for example) can find help from several investors interested in taking risks in a certain business (such as 100 investors with one thousand reais each) making the capture process much simpler.
Okay, now you know what crowdfunding is, how it works and even what the benefits are, right? But where to find crowdfunding platforms on the web? Is there any allocated here in London?
The largest crowdfunding platforms
Answering the last question: yes, there are already quite consolidated crowdfunding tools here in London. And yes: it is very easy to find them on the internet, both here and internationally.
Considered the first and largest crowdfunding platform in London, O Catharsis it has been on the air since the beginning of 2011, having already awarded more than 2500 projects, responsible for raising more than 44 million reais invested by more than 280 thousand people.
A lot, isn’t it? And he is not even the only example that we have here in the London lands.
With a slightly more social crowdfunding footprint, the Kickante has already launched more than 19 thousand campaigns responsible for raising over 22 million reais across the platform.
Despite being officially launched two years after Catharsis, the idea of Vakinha it is nothing new.
Created in 2009, this site came about after two friends realized the perrengue that was to collect the money of a large group of people to pay for a project – which in this case were the wedding gifts of one of the brand’s founders.
Now, more than 7 years later, Vakinha has already managed to raise money for more than 400 thousand projects registered there.
In the world
Did you find the numbers of London crowdfunding platforms impressive?
So just take a look at the Kickstarter, the largest in the world: more than 2.4 billion dollars collected over 5 years for more than 106 thousand projects. Among them the famous Rift Glasses (bought later by Facebook) and even the film based on the series The Veronica Mars (which collected more than 5 million greenbacks in its campaign).
A favorite of independent film and short film products, Indiegogo is responsible for giving life to projects like the acclaimed Hardcore Henry (film totally shot in first person with the help of some GoPros) and Lazer Team, responsible for raising almost 2.5 million dollars in less than 2 weeks.
Founded in 2009 in New York, the WAUethub is a type of crowdfunding platform that initially served more technology and science projects, however, over time it has been transformed into a more open system aimed at educational projects that has already served tens of thousands of institutions around of the world.
Okay, did you see how there are several crowdfunding platforms with different footprints here in the country and out there in the gringa? Well, now you know one thing: besides help thousands of entrepreneurs around the world, crowdfunding has also made the fun of many supporters out there, whether through games, records and even extremely interesting movies.
Ideas that have already come to life with this business model
With the power to help bring extremely interesting products to life, crowdfunding have brought to the fore several projects that might never stand a chance in the conventional market, but after they are ready they often prove to be real successes.
Books and Comics
Launched in May 2016, the project for the book Original fairy tales, from producer Marina Avila, asked for R $ 2,950 to come to life (through Catharsis). However, it took just over a month for this amount to exceed the target by more than 100%, being a great example of a literary success case of crowdfunding in the country.
From the capixabas of Dead Fish to the gauchos of Apanhador Só, there is no shortage of bands in London that managed to produce their records thanks to crowdfunding.
Considered one of the greatest authors of today, the North American Chuck Palahniuk has several bestsellers in his career, however perhaps none of them has the same success as Fight Club, a book that had its fame expanded thanks to the cult version of theaters back in the late 90s.
And then, with a name from that curriculum, Palahniuk did not think twice when planning the adaptation of another of his works (Cantiga de Ninar): he bet all the chips in a campaign of the Kickstarter.
And is not it worked? In less than 2 weeks, more than 3 thousand people raised the 250 thousand dollars necessary to start this awaited production.
Considered the most successful podcast in history, the Serial needed a little money to make its second season. And there was no way: there were the producers to resort to a crowdfunding campaign to bring it to life.
A campaign that not only worked but paved the way for this funding model to be considered for a possible next season.
Now, if you don’t know what podcasts are, take a look at complete guide we’ve done on the subject.
Produced by a part of the team responsible for game classics like BioShock and Dead Space (both with a footprint of terror), Perception it caught the attention of the international media because of its look and its history, which tells the life of a blind girl who is forced to walk through haunted scenarios.
The game needed 150 thousand dollars to be developed and collected 168 thousand and broken ones in just over 1 month, becoming one of the biggest success cases of Kickstarter.
Shows & Events
Able to take hundreds of thousands of people to the streets every year during the Belo Horizonte carnival, the block Chama o Sinico in 2016 innovated by setting up a campaign in the Catharsis in search of raising 25 thousand reais to make the revelry possible this year. An amount that was tapped quickly in a matter of days.
Did you see how there are many projects carried out through collective financing? However, what many people do not see is that in addition to pointing out a good way out for those who are looking for a little help to get your ideas off the ground, they are also a great lesson on how to do great digital marketing on the internet.
Didn’t understand why? So calm down that we explain.
Crowdfunding and digital marketing
Dead Fish CD, horror game, independent film, perhaps none of these successful cases that we have just listed, would exist if it were not for the collective funding through the web.
However, for your financing campaigns to work, you also needed to have a good knowledge about digital marketing.
Yes that’s right! Think with us: do you think that just putting a project on a page and waiting there for the clicks would help someone make money? If that were the case, life on the web would be too easy, wouldn’t it?
So, for the actions of these projects to give results, each responsible person had to do their part, as for example taking care of some very important points for this type of marketing (which we have already covered in our e-book) Digital Marketing: The Websites Are Us Guide):
There are many others that you can check out in the book.
Did you see the relationship between crowdfunding and digital marketing? So, just to close the subject, take a trip to the Perception game profile on Kickstarter and notice how the guys at The Deep End Games (game producer) took care of your campaign.
See how well they managed the content, producing videos, using images, taking care of the scannability of the text and publicizing your project in your social networks.
This is certainly a great case for you to study and understand the importance of digital marketing for any type of web project.
Well, as you saw here, today there is no better way to get an idea on paper than through crowdfunding. But for that you need to know how to sell the fish and master the art of digital marketing. Something that, for those who follow our tips, is not at all complicated, right?
Did you like our crowdfunding special? So take the time to check out the post with the 15 best sales tips to increase your conversion and discover the tricks for your crowdfunding campaign to give even more results.