Rules for success in swarm financing
The German cultural consultancy Actori has taken a close look at the opportunities of crowdfunding for the German cultural and creative landscape and formulated rules for the success of this form of project financing, which is still relatively new in Europe.
On average, around 3,200 euros per project were raised through crowdfunding in Germany in 2012, while most successful projects in the USA also received less than 10,000 dollars. Actori writes that crowdfunding has not yet been able to generate big money.
However, this form of fundraising represents an opportunity for the independent scene in particular: With a success rate of 42% in Germany and 44% in the USA, almost every second project is realized.
The company sees rules for success for this form of fundraising: unique and exciting ideas that have a strong emotional appeal and from whose realization the supporters themselves can benefit are promising. In addition, the project must be presented as vividly and concretely as possible, but still be easy to understand.
A targeted communication strategy is also important. Ideally, online tools such as Web 2.0 applications and social networks should be combined with traditional offline marketing (flyers, press work, word of mouth, etc.). Regular updates are essential.
A certain size of the network is also crucial for monetary success, as usually only one percent of a community participates financially.
The entire study can be found at:
www.actori.de/fileadmin/Redaktion/Downloadcontent/Publikationen/1301_Crowdfunding.pdf
