Monthly Archives: May 2012

On Giveaways and Perks

'Gift' photo (c) 2006, asenat29 - license: http://creativecommons.org/licenses/by/2.0/

Whether they’re called giveaways, prizes, gifts, rewards, incentives or just thank yous, the principal behind the word is the same; people are more likely to support your project if they receive something in return for their donation.  The perk itself is one of the major selling points to your crowdfunding pitch.  Perks add value to your campaign’s pitch.  These perks do not have to be physical, like a DVD or book; they can also be intangible items like a digital download or personal phone call.

Intangible perks can be divided into two major categories: digital and experiences.  Experience based perks work because of the exclusivity of the offer.  Musician’s might offer guitar lessons or a meet and greet.  An author with expertise in a certain area might offer a one on one skype consultation.  Another area of experience based perks is services.  A writer could offer to edit a website’s copy or an artist could offer a personalized image for a blog. Experienced based perks should be unique to your personal skills.

Offering an advance digital download of an app your creating is an example of a digital perk.  Other digital perks are eBooks, mp3’s, desktop wallpaper, or exclusive website access.  These types of perks offer a cheap alternative to physical gifts.  Once a digital file is created, distributing thousands of copies is easy.  Digital perks are the perfect low cost way of collecting small amounts of money from many to donors to fund a campaign.

Physical perks are common giveaways for crowdfunding campaigns.  T-shirts, posters, calendars, books, comics, DVD’s, and flash drives are examples of this type of perk.  For some campaigns, like new inventions, offering a physical product is a no brainer.  Other campaigns, like for a new website, might offer physical products to fill a gap in their fundraising offerings.

Most campaigns will use a mixture of these perks.  A musician might offer a thank you note on their website, a digital download of their album, a backstage pass, a t-shirt, and autographed memorabilia.  The JOBS Act will allow entrepreneurs to offer a share in future profits – a whole new level of perk.  However, this website will focus on providing ideas and examples of cool digital, experience and physical products that could be used as gifts to donors.

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Featured Project: Movie Cloud

Our first featured project.

Movie Cloud is a new venture from Hollywood filmmaking guru Dov SS Simens.  Movie Cloud wants to turn the Hollywood insider studio system upside down by turning it inside out.  Film audiences and filmmakers will have a direct link to each other which will allow filmmakers the opportunity to make movies that audiences want to see.

By the way, check out Dov SS Simens’ 2 day film school and his book, “From Reel to Deal: Everything You Need to Create a Successful Independent Film.”

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What is Crowdfunding?

Have you ever been watching an amazing nature special on PBS when suddenly they cut to a shot of a room full of people answering ringing telephones?  Then a presenter tells you how much he or she loves this type of programming, but your local PBS station can’t provide this kind of programming without the support of viewers like you.  For only a $100 pledge, you will receive a copy of the DVD of the program you’re watching and a tote bag.  If you’ve seen this, then you know what crowdfunding is.

However, the quick answer, in terms of this website, is that crowdfunding is asking people to donate to your project or cause and in return you offer some kind of reward or recognition.

What crowdfunding is not

Crowdfunding isn’t free money or a get rich quick scheme.  People who donate to your project expect you to live up to what you’ve promised.  Your integrity is on the line.

What crowdfunding will be

If you live in the United States, then crowdfunding has a very bright future.  The JOBS act will allow project creators to offer a share of future profits in return for a small investment.  The details of this program are still in flux.  Stay tuned.

Resources:

Here is a more in depth Wikipedia article: http://en.wikipedia.org/wiki/Crowdfunding

And a few YouTube Videos:

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