There are no shortage of stories about people who are using crowdfunding to jump start a wide assortment of projects, hobbies and business ventures. On this site alone, we’ve recently written about an actress who’s using a Kickstarter to finish her album; a fashion designer who’s used crowdsourcing funds to finish her fashion line; and a bookstore that’s trying to stay put with help from the community.
According to The New York Times, 30,000 projects have been helped by three million donors on crowdfunding sites. The article notes that, because this is a new method, there are still some kinks.
“The backers play the role of philanthropists, investors, customers — or all of the above. And when promised rewards are slow to materialize, eager backers can get cranky,” the article says. Not to mention the issues with manufacturing and distribution that can come up with certain projects.
But by and large, what we’ve been seeing on the topic is positive. At a time when dreamers and entrepreneurs are turning to alternative funding sources, we thought we’d ask Indiegogo, one of the biggest crowdfunding sites out there, for some advice. Below is an email Q&A with Danae Ringelmann, founder and chief operating officer of Indiegogo, covering some of the crowdfunding basics.
Madame Noire: Are there some projects that tend to do better than others?
Danae Ringelmann: On Indiegogo thousands of campaigns are receiving the money they need and accomplishing their goals. The most important things include being proactive, having a good pitch, and finding an audience that cares. The campaigns that find the biggest challenges are the ones that believe you can just post it and funders will come. No one wakes up in the morning and says “I wonder what zero-funded campaign I can go give money to today.” A successful funding campaign will take effort and the more effort anyone puts in to it, the more Indiegogo will amplify them even further.