By John Moore
Crowdfunding has taken off as a financing vehicle for a variety of projects, from music albums to software. Websites such as Kickstarter and IndieGoGo bring the funding appeal to the Internet public, and they sometimes even offer rewards to people who pledge support.
Crowdfunding may sound like an apps-to-riches story. But executing a crowdfunding campaign isn’t as simple as it may sound. Here, Scott Steinberg, CEO of strategic consulting and product testing firm TechSavvy Global and co-author of The Crowdfunding Bible, explains why.
What do you see as the most dangerous misconceptions regarding crowdfunding?
Scott Steinberg: The most common mistake is that people expect crowdfunding to be very straightforward, very easy and right for any type of project. It takes a tremendous amount of effort to run a campaign -- 30 to 45 days is standard. We call it a marathon, not a sprint.
Crowdfunding tends to work best for projects that are easily communicable visually and can be summed up in a sentence. For a crowdfunding campaign to be effective, you need to capture the viewer’s attention very quickly and provide a strong call to action. You need to create a sense of urgency around the campaign and get people to dip into their pockets then and there.