CrowdFunding is not a new idea, it is just a new name for fundraising using today’s technology
After all, banks and lenders have been doing it for centuries – borrowing small amounts from lots of savers and lending to businesses and homebuyers. We have allowed and trusted middlemen to do this, but not any more. Even regulators are admitting that there are better ways for funds to flow directly.
BUT entrepreneurs and fundraisers still have the same age-old problem – how to reach their target audience effectively, not just for their products or services, but now also for funding. It can take years to build a following on social networks, and even then, only a very small percentage of followers will actually want to invest, purchase or donate.
As the crowdfunding space develops, there is an urgent need to market projects with the same level of professionalism that one finds in the "normal" business environment. Most projects fail because they cannot bring a large enough audience with them and/or do not know how to generate the right kind of traffic. (Of course the majority of these would not or could not pay for the marketing anyway, and probably don't even know who their target audience is or should be.)
However, as more "businesslike" projects come to market, the project owners are realising that there is a marketing cost to achieve their goals. Rather than devoting months of their time to promote their own projects, they are learning to count that cost and to evaluate the alternative of paying, say, 10-15% to professional marketers to do a better job. Even creative projects have to find their market, while charities have always included marketing as an expense. Don’t think for a moment that the crowdfunding projects that have made the headlines have not spent money on marketing!
Patronony.com is now recruiting Affiliates to fill that gap and provides the tracking tools essential for payment flow. And there are other cost effective ways to build marketing channels via professional advisors or Mentors.
Project owners also need Mentors in most cases, including legal and accounting oversight, especially for equity funding. Mentors can guide clients through the start up days with their experience and contacts. Mentors in return, can charge for their services in a variety of ways or give of their time for causes or sponsorship. Mentors will ideally have their own network, social or otherwise, behind them and can offer those channels an earning potential (with an override if desired). A good network of service providers can deal with issues such as prototyping, manufacturing, logistics and of course sales.
Patronomy.com also gives Patrons the opportunity to become Affiliates, not just during the campaign, but in the long term and we can provide a framework for ongoing sales. After all, who better to sell your product/service than a satisfied customer!
For more information about being a Mentor or Affiliate, please visit the Mentors Page