Crowdfunding is one of the best paths to take if you want that opportunity to turn a great idea into a real thing but don’t have the funds to move forward. But there are celebrities left and right that use this platform to promote new projects for die-hard fans. Nothing should stop these people from trying but some folks are crying foul since they could easily afford to launch the project without any help from the public. These celebrities should have plenty of money to burn right? Sure but there are a few reasons why crowdfunding is actually a smart move.
1. Gauge Interest
Before crowdfunding became popular, people really had to take the risk and launch a product or service hoping customers will consider. This meant spending a considerable amount of time and effort to build the product just so the customer can decide to or not to buy. With crowdfunding, it is pretty easy to tell if a lot of people are interested. Just check how much money you raised and what rewards the majority were gunning for.
2. Community Building
Crowdfunding can be viewed as a great way to “rally up the fans”. If you know you are targeting a very niche market, you can be certain that this niche will react positively to any kind of news that a crowdfunding campaign of something of interest is taking place. These people will likely be vocal and excited about things. It is the reason why you can start from 0 backers to a few thousands in just a matter of weeks.
3. No Money Wasted
Just because you are a celebrity doesn’t mean that you should waste your money on ideas that might not fly if there isn’t enough interest. Millionaires are millionaires because they make great money decisions. If you can save thousands of dollars, why not? Besides, some projects don’t come cheap and it can even be worse if the project fails miserably.