One is you, two is company and three … well … three (+) is a crowd. When it comes to relationships, the middle option is perhaps the best as it reduces complexity and the number of moving parts. Alternatively, when it comes to getting cash to back your idea, product, or dream, you definitely want a crowd – three (+) is a crowd.
According to Google, a crowd is a “large number of people gathered, usually in a disorganized or unruly way.” Two factors in this definition that are interesting when viewed from a 21st century technological perspective is the idea of being “gathered” in a “disorganized or rebellious way.” With the dawn of the internet, social media, and the information age, a crowd may never be in the same geographic location at the same time. They can be in the same place “gathered” within virtual spaces. In addition, with the appearance of crowdfunding spaces such as Kickstarter, Crowdtilt, Indigogo, etc. a crowd is no longer disorganized or unruly. It is quite the opposite. These crowdfunding spaces have not only made it possible, but have also made it easier to frame your idea and create your own support crowd.
Again, when it comes to getting cash to back your idea, product, or dream, you definitely want a crowd – three (+) is a crowd. You want a lot of people who want to see your idea come to life. These are the people who instantly get it (your idea) or who could easily get it with some strategically placed incentives to inspire their support.
In this, while a single powerful person with deep pockets can be quite influential (note: there aren’t many of these wandering around), 100-1,000 regular Joes and Janes with a bit of disposable income on their mattress and a connection to their idea ( note: there are literally millions of these people) could be equally valuable in helping you get cash for your business.
The following are three instant reasons why crowdfunding seems to work:
• Instant recognition: Even the regular Joe and Janes like to see their name in lights and crowdfunding gives us the space to support ideas and people that we consider extensions of ourselves (eg, I was proud to see my daughter 4-year-old name listed as a supporter of the “Recycled Mississippi” Kickstarter campaign).
• Instant personal reward / gain: Once a funding goal has been reached, followers receive the benefits and products promised by the campaign fairly quickly (for example, I recently supported an album that is being recorded via Kickstarter and am scheduled to receive the album, hoodie, and a virtual high-five in October 2017).
• Instant Community Impact – Things with crowdfunding campaigns move quickly. By doing this, novel and sometimes creatively destructive ideas come to life. In turn, this can positively impact the challenge that campaign organizers (or better social entrepreneurs) are trying to solve.
Finally, it is important to note that with increased support funding there may also be greater complexity. While adding more supporters and people to your idea can lead to increases in funding with nominal returns for those supporters, it can increase the complexity of your operations. For example, typically a crowdfunding campaign will make promises or obligations in exchange for certain levels of compounded support (for example, $ 10 will receive a virtual high five, $ 25 will receive a signed photo and all of the above, $ 50 will receive a CD. and all of the above, $ 1,000 you will receive a song written for you, etc.). While creating campaigns like this is a great way to find a following and gain funding, it should be intentionally aligned with your organization’s idea or mission. Put more succinctly, it’s easy to get bogged down in keeping your promises and obligations and lose sight of what you’re in business to do.
Strive to have a crowd, keep it simple, and collectively bring your idea to life!
