Source: Boxyroom.com
Crowdfunding has become more and more of a phenomenon as more people hear about it. It has made its way both into business magazines and social media. Browsing Adweek, I came across a project that had been funded over 2000% of its goal. Shortly after, I logged on to Facebook and stumbled upon a joke of a product, the Nophone, which was, hilariously, funded 3 times over its original goal. No sooner had I done that, my dad told me that he had just pledged $25 to the fourth Video Games Live album.
Personally, I think crowdfunding is an ingenious way to start a project with an extremely large amount of benefits. There’s certainly the aspect of money for the project, of course, and reduces the need for a few, rare, rich investors, but crowdfunding, in a way, provides some market research for the company or the individual. The amount of funds raised, supporters, and comments can really help the host get a sense of how successful their product may be. On the other hand, it can also be a way of marketing as people who would not have heard of the product otherwise, will pitch in to the product. Certain groups provide bonuses such as exclusive songs or posters for high pledgers, merely another incentive to help fund a project.
I’ve seen the success of crowdfunding and while it may not be the right way to approach every single project, it could certainly help out many.