What is crowdsourcing? It’s getting people together to promote a project, usually involving money. And it is hugely successful.
Take for instance Kickstarter.com, one of the biggest (other biggies include RocketHub, and IndieGoGo.com). You create a project proposal, and the crowd votes on it by donating to your cause. If you make your projected goal, you get the money to start your venture.
In one case, a group that wanted to manufacture an specialty titanium lock for their bicycle got their money – and then some – to produce it. They had an idea, showed everyone the idea, and took in over $100,000 (instead of a hoped-for $37,500) in return for product orders in advance. This gave them the money to start.
Many of the sites are for artists rather than designers: many have projects for books, plays, and recordings. For example, a project might ask for money for producing a record or EP, or to write a book.
Generally, a project has several components:
- A clear goal. For example Kickstarter requires a specific project with a specific timeline. You can’t use them to fund a new business, but you can to fund a new part of a business.
- Something to give back. Many projects have things that your donation ‘buys’ you, much like the gifts on Public Service Television pledge drives. An author may send out a thank you for a $5 donation, and an autographed copy of the finished book at $50. Setting up a variety of items and price levels serves to encourage donations.
- A total money requirement and deadline. The project is listed when it starts, and the end time is displayed as well as the progress in funds. Choosing carefully is important: Kickstarter will not give you the funds if you don’t make your final goal by your deadline (others like IndieGoGo will, but with penalties, such as a higher processing fee).
These sites are well worth a look if you have a project that needs funding. Consider them the next time you say “I’d do this if only I had the money” – because if enough people agree, you WILL have the money!