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What Is The Next Crowdfunding Evolution?

posted Jun 14, 2014, 1:55 PM by Siamak Ebarhimi   [ updated Jun 14, 2014, 1:55 PM ]
It’s been said that crowdfunding is less of a straight-forward investment and more like buying wine futures. You’re essentially paying a discounted rate for nextyear’s crop. And, just like wine, once you’ve put your money in, you can                                  only hope that the weather is good, the vines aren’t attacked by bugs,
                                                                                   and the vintner is as good as he claims.crowdfunding marketing

https://sites.google.com/site/crowdfundunion/about-us

But, this analogy, no matter how clever, falls apart at one crucial stage. With wine, there is already a predetermined market, distribution channels and product awareness. People may not have heard of “Bobby Joe’s Blackberry Pumpkin Chardonnay” but they do know wine exists and they generally know where to find it. This is not the case, though, when it comes to crowdfunded projects.

For instance, Erik Chevalier’s crowdfunding campaign for the old-fashioned board game, The Doom That Came to Atlantic City, was a huge success, raising nearly $88,000 more than its target of $35,000. But, despite that infusion of capital, the game never launched. According to Chevealier, “Every possible mistake was made, some due to my inexperience in board game publishing, others due to ego conflicts, legal issues and technical complications.”crowdfunding advertising


Chevalier’s tale of woe (it gets much worse and involves him moving to another city and working to replay the donations) is the proverbial canary in the coal mine. Simply put: creative types, the sorts of people who can come up with everything from new games to luminescent house plants that can light entire rooms, are generally not good at the nuts and bolts of running the daily operations of a business.kickstarter marketing


Where do people who have gotten their products successfully funded through crowdfunding go to promote and sell their merchandise? Where is the right place to sell their product alongside similar high-quality merchandise? How does someone go about attracting the attention of retail buyers?indiegogo marketing



Other options include literally going out and knocking on the doors of every related brick-and-mortar retail outlet within driving distance and hoping they’ll give you some shelf space or fighting with established manufacturers to try and get into national chains like Target, Costco or Wal-Mart.Using sites like eBay or Craigslist means the seller is, once again, struggling among hundreds, thousands, even hundreds of thousands of competitors for the attention of consumers. Good luck trying to move a dozen units, much less the numbers required to have a viable business.kickstarter project


Posted from : http://www.forbes.com/sites/drewhendricks/2013/09/26/what-is-the-next-crowdfunding-evolution/

 By David Khorram | www.CrowdFundingPlanning.com