Sunday, June 10, 2012
Crowdfunding Your Next Book
I came across an excellent primer on the ever-growing popularity of crowdfunding, called The Crowdfunding Bible: How To Raise Money For Any Startup, Videogame, or Project by Scott Steinberg. It cut to the chase in identifying how to secure crowdfunding.
Crowdfunding can be an excellent way to raise money for the publishing and marketing of a book. You may be asking what crowdfunding is, so here is what the book defines it is:
“Crowdfunding is the process of asking the general public for donations that provide startup capital for new ventures. Using the technique, entrepreneurs and small business owners can bypass venture capitalists and angel investors entirely and instead pitch ideas straight to everyday Internet users, who provide financial backing.”
Crowdfunding gives you 100% control of your book or business – you are not dictated terms or given management pressures by investors in the traditional sense of how companies are normally run.
Steinberg adds: “Another significant advantage of crowdfunding is that you don’t give away the ownership or equity stake in the venture. Traditional sources of investment typically require that you give up a portion of a company or project in exchange for their support. Moreover, investors frequently expect a quick return on investment (ROI), often at odds with entrepreneurs focus on long-term value creation – and can even influence your project in ways you hasn’t anticipated and sometimes don’t welcome in contrast to the crowdfunding model, which affords backers no formal creative or commercial power over your project, traditional investment models, and investors, can often hold your feet to the fire at any time.”
There are many sources of crowdfunding. Here are a dozen places to begin with:
There are many considerations to review before taking on the crowdfunding route. For instance, do you believe people will really buy into your idea? What differentiates your book or product from others? What will you reward or incentivize potential backers with? Do you have publicity or marketing help? Have you calculated all the money needed to get the project going? Are you ready to share your idea with others – and receive critical feedback?
The June issue of The New York Enterprise Report notes: “Today, there is increasing interest in crowdfunding as a means of offering investors an ownership interest in an early-stage or small company that is looking for $1 million or less in equity capital. Before taking the leap into crowdfunding, entrepreneurs need to evaluate and understand the costs, risks, and time commitment involved. And potential investors need to do their due diligence on the companies they come across in this sphere.”
Crowdfunding poses some wonderful opportunities to help authors and small businesses to launch or grow their entrepreneurial venture. Explore this option carefully and you may just end up with the next big idea!
Have You Seen This Past Week’s Posts?
What The Bestseller List Sales Numbers Reveal
How Promoters, Authors & Publishers Get Others to Say YES
Shrinking Newspaper Industry Hurts Authors, Publishers, Publicists, & Citizens
The Appeal & Necessity Of Fiction
The Appeal & Importance Of Audiobooks http://bookmarketingbuzzblog.blogspot.com/2012/06/listen-up-audiobooks-speak-louder-than.html
Don’t Make Me Like You!