A few months ago, I shared my opinions on why famous celebrities are riding on the crowdfunding bandwagon. Some people would argue that wealthy individuals shouldn’t use the platform and leave it to the folks that need actual funding. I believe otherwise since crowdfunding is a platform after all just like social media is. In fact, nothing should stop you from trying the crowdfunding even if you believe you can take care of all the production and marketing expenses. Let these reasons enlighten you.
Surveys Consumer Interest
I’ve mentioned this benefit before in the celebrities post. Launching a brand new product or service will always have some degree of risk. Not only will your campaign likely compete with the more mainstream contenders but it is also possible that there are similar crowdfunding campaigns and people might already be backing them. Throw in a discounted preorder reward tier and your crowdfunding project instantly becomes a tool to see if there are people actually interested in what you are doing. In addition to that, people have the ability to comment on your project and these comments might help you make refinements. In this case, failing to reach your funding goal can actually be a lifesaver because you can identify the flaws, correct things and launch an even better campaign.
Generates Hype for Your Project
Crowdfunding your platform also serves as a marketing tool. The famous Shenmue 3 announcement by Sony is a great example because it not only raised a ton of money but it gained a lot of publicity from all the gaming blogs and media outlets. Sony is providing funding to the development of the game too much to the dismay of some fans but fans are caught on the hype train and they get money too. That’s a huge win for the developers and publisher.
Better Handling if Things go Awry
The sad truth about crowdfunding is that projects do fail even if they meet or exceed their goals. Things can get more expensive then expected and it is normal to run into some difficulties. By seeking funding from your fans and potential backers and having a budget of your own, you can be more confident in giving them timely results. That ends up being a win-win situation for both you and your backers. Just be sure to disclose to them that you have funds of your own and you are seeking additional funding to ensure your product or service has the best launch possible.