How to Rip Off Crowdfunding

I recently ran a couple of Kickstarter experiments. It’s free to try out, and I was curious what kind of feedback I might have gotten in regards to my projects. Kind of an interesting way to get the eyes and ears of those who are interested in crowdfunding oddball projects. EXAMPLE

Crowdfunding Project for South America Mountaineering AdventureCrowdfunding:┬áSeven Summits Quests Volume 5 – South America

Well, I did get a lot of feedback on my crowdfunding test project privately from a group of former business associates and acquaintances in my LinkedIn and Facebook communities, but the most interesting results were the sheer number of spam emails I got offering to market my projects. I replied gently and kindly that if there were a guarantee of funding I could go about 5% of budget to get it done, but not without a guarantee, because if I had $10,000 sitting in a pile by my desk, I’d just shoot the documentary on the cheap and get it done. Not blow it on marketing gimmicks with no guarantee of crowdfunding success.

One of the most interesting offers I got was what I would best describe as a Social Aggregation Service for Crowdfunding. At the initial “FREE” level there was a training video based on a series of Power Point Slides that explained how the average user could easily generate over $100,000 in funding in only a couple of weeks. I skimmed the presentation, and here, free for your own edification (edumacation) is the process.

  • The average user has 8,000 social contacts that they can access via private message and public posts and comments.
  • Of those 8,000, approximately 10% will fork over $20 if you ask them. 800 x $20 = $16,000.
  • Of those 8,000, approximately 3% will fork over $100 if you ask them. 240 x $100 = $24,000.
  • Of those 8,000, approximately 1% will fork over $1000 if you ask them. 80 x $1000 = $80,000.
  • The value of an average client with 8,000 social contacts is then approximately $120,000.

Using this somewhat oversimplified logic, it would seem that if you cut out all the middle men you could just open up a free blog page at Blogspot or other service, then spam the living snot out of your social contacts begging them to go to your blog page and donate to the cause. If you want to use a PayPal “DONATE” button and pay the 2% that’s a whole heck of a lot cheaper than paying a handful of other services their 3%, 5%, 10% cuts of the fees. That would end up being $20,000 or more that you probably didn’t budget into the project. If you want to suggest to your friends that they just stuff cash in an envelope and mail it to you, you cut out even more fees. Fees that would better be spent on your magnum opus, right?

Crowdfunding Motivational Meme Image

You’re essentially doing the exact same crowdfunding process as at the big sites, without the middle men and all their fees. You’re ripping off crowdfunding.

About the Author: Charles

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