January 11th, 2011 Archive

Crowdfund Your Next Project

January 11th, 2011 by Ric in Sharing Success

I spoke with my good friend Tellman Knudson a while back about a great way to get funding for your projects: Crowdfunding found in Internet Marketing TNT July Issue and in the  April Issue of Healthy Wealthy n Wise entitled Run Tellman Run As the name suggests, crowdfunding involves getting a crowd to fund your projects – that’s pretty self-explanatory, right? It’s a very simple, but very effective concept. The key, however, is actually convincing the crowd to do the funding.

Before we go into that, I think we should go over how crowdfunding works. It’s involves four steps:

  1. You share your idea on Kickstarter.com or other crowdfunding sites. You also specify how much money you want to raise, and your time frame.
  2. You drive as much traffic as you can to that page.
  3. If people like your idea, they can pledge a certain amount to your project. The key here is that they only have to follow through on that pledge if you reach your specified goal.
  4. If you reach your goal, you now have funding for your project.

It’s pretty simple, right? Tellman highlights one of the best things about crowdfunding, and that is that it minimizes risk for all parties involved. For the people making pledges, the key is that “they’re not going to give the money to an initiative that’s only going to raise half the funds and not ever happen.” Since they won’t be charged unless a project is fully-funded, they know that whatever projects they actually put money into are backed by a whole community of people who believe in that project.

For the people behind the projects, there are several benefits. I’ll share just two of the benefits that Tellman shares:

  1. “It’s a great marketing test.” As Tellman explains, “it’s a way for nonprofits to gauge what type of good work they should do in their community: Put out a bunch of ideas and see what other people think.” In the end, your best ideas are the ones that get funded.
  2. Related to this, crowdfunding means never failing again – or at least drastically improving your success rate. When a project gets funding, you know that people not only like your project, but are actually willing to put money into it. Taking that even further, crowdfunding allows you to only work on “projects or products that people have already paid for in advance.”

There’s a whole lot more that Tellman and I discussed in the call, including ways to increase the chances of your project of getting funding and finding better ideas for projects. There’s so much we cover that I suggest you follow the link above and get the whole interview. You can try and figure everything out yourself, but you can also save yourself a whole lot of trouble by learning from Tellman himself.

No, you don’t need Tellman’s help to get started. “The reality,” as he says, “is that you could have projects up and have people pledging to them tonight, even without buying the course.” Tellman just wants to “show you how to do it without knocking your head up against a wall.”

I don’t know about you, but I think I’d like to keep my brains from getting pounded into mush.

Until the next post,

Ric


Image by: Renjith Krishnan / FreeDigitalPhotos.net