Crowdsource funding hubs such as kickstarter.com have raised more money for independent projects than the entire National Endowment for the Arts. But can anyone use online crowdsourcing services? The Chronicle of Philanthropy says yes, but only if they are willing to support its campaign with its own money, web presence, and time.
The Chronicle’s Allison Fine sat down this week with amateur film director Marc Erlbaum, who has already raised $150,000 for a documentary in just under a month through the crowdsourcing site indiegogo.com. Erlbaum raised his money without a major news story or anything else to capture the public eye. Funding came solely from a grassroots online effort that allows people to invest in a project that they believe in.
Online fundraising campaigns can be incredibly successful, and are catching on for entrepreneurs and non-profits alike. But they aren’t easy. Here are a few things to know before you get started:
- Campaigns are time-intensive. Erlbaum needed to campaign 10 hours a day, responding to contributors, reaching new ones, writing press releases and creating new social content daily. All these activities were in addition to the daily video segments he needed to make for the actual documentary. Any significant break would have brought down donation numbers for that day.
- Campaigns can be resource intensive. When Erlbaum’s began his project, he had $40,000 in cash, a fully functioning website with a steady stream of traffic, and 50,000 likes on his Facebook page. He knew he could not have launched a successful campaign without resources up-front.
- Crowdsourcing brings many cooks into the kitchen. Keeping all contributors organized can sometimes become a project in an of itself. Erlbaum notes that at times his campaign resembled a retail store rather than an advertising blitz. Instead of projecting a message, he invited potential donors into the inner workings of documentary in order to assist in its creation.
All the headaches aside, Erlbaum loves crowdsourcing, mainly because:
- People are excited to give! Contributors’ enthusiasm can be overwhelming on crowdsourcing sites, and most are not only ready to donate, but want to share the project with friends and contacts on other social media sites. Erlbaum loved the fact that he began this project alone and wound up with 22 volunteers!
- Crowdsourcing brings many cooks into the kitchen. Crowdsourcing allows non-profits and entrepreneurs to keep their donors coming back (and giving more!), by allowing them to have a real stake in the project. To boost participation, Erlbaum even started to give “micro-grants” to other film directors, so that they could join his project and bring new supporters!
- YOU have control. While many contributors claimed a stake in Erlbaum’s project, he never relinquished his own control of it in return for a donation.
If your organization can offer the time and make the sacrifices, crowdsourcing sites are a great way to socially boost excitement and engagement for your project or mission. Just remember, as Erlbaum says: “The real rewards of engaging so many people in something also come with the costs of being answerable to so many people.”