Crowd(ed) Funding

Crowd(ed) Funding

Last June my friend, Freddi, was very excited about her great idea for a crowdfunded project. "I could do so much with ten thousand dollars, and once my work catches on, the sky is the limit!" I enthusiastically wished her well.

If you are online and reading this, you probably know all about 'Kickstarter' and the many other crowdfunding sites. But in case you have been hiding in a fallout shelter since 'W' got elected, here's how they work:

1. Money is needed for a project
2. The project is "pitched" on a crowdfunding site
3. People see the pitch and pledge small amounts toward the goal
4. If goal is reached in 30 days, the project can proceed

Two weeks later Freddi called. "My project goes up on the site tomorrow. Keep an eye out."

They don't make it easy to find the project you promised to fund. That's on purpose. By the time you navigate to it you've seen many other projects and ideas that you love. You're there, your credit card number is registered. Why not give a clever entreprenuer a break?

Freddi's project was definitely lost in the crowd. The pitch was underwhelming, the concept was poorly explained, the pledge reward tiers made no sense. I loyally pledged, but was not surprised when the project failed. Neither was Freddi.

"When I saw those other projects, I knew I was in trouble," she confided. "They all had compelling messages, adorable rewards, and the demos! I'm trying again, and this time I'm getting help!"

The next pitch was awesome, and Freddi got her ten thousand. "So now you're off to complete that project?" I asked over congratulatory drinks.

"Well, not exactly. By the time the crowdfunding site got their cut, and I paid off the copywriter, the designer, the demo-maker and the fulfillment house, I didn't have enough cash left for the project; and now," she said, chugging her drink, "I have to send regular progress reports to all my donors."

Freddi might have to crowdfund another project just to pay for this one. But at least she'll know how!