Crowd Funding Is A Great Business Model--However Many Flaws Must Be Corrected To Engage The World

CROWD FUNDING IS A GREAT BUSINESS MODEL; HOWEVER, CROWD FUNDING HAS MANY FLAWS THAT MUST BE CORRECTED TO ENGAGE THE WORLD

The crowd funding business model has the potential to perpetuate the Greatest Con In The History Of The Human Race by forgetting the history of the Internet—and embracing self-serving interests that play on people’s desire to be part of a crowd. Matrix Thompson and Sarika Khambaita discussed these very topics in "Social Networking Is The Greatest Con In The History Of The Human Race - Volume I", an informative manual that explains how many internet companies have convinced Internet users to work for free to build powerful online businesses.

Specifically, there are several areas of concern:

• Rewards-based crowd funders offer backers meaningless rewards of pre-orders of untested products in return for financial support;
• Rewards-based crowd funders do not offer crowd funders a share of their future sales in return for their referrals as traditional affiliate marketing systems do.
• Crowd funders hide behind the Securities regulations  and use it as a reason for denying backers a share in their future success (you don’t have to give up equity in your business to reward a person for helping you—sales commissions or bonuses are just as good, if not better;
• Most crowd funders lack influence and, or personal network to succeed;
• Crowd funding portals brand crowd funding as a silver bullet that can be embraced by anyone to raise financing, when the truth is it is really hardwork;
• Crowd funding portals are using you to grow their brand.

CROWD FUNDERS OFFER BACKERS MEANINGLESS REWARDS OR PRE-ORDERS OF UNTESTED PRODUCTS

Crowd funders placate their backers with meaningless rewards, raise huge amounts of financing, build huge businesses and give virtually nothing back to the supporters.

CROWD FUNDERS DO NOT SHARE SALES COMMISSIONS WITH BACKERS LIKE A TRADITIONAL AFFILIATE NETWORK

For example, if Susan Doe tapped into her personal network to share a crowd funder’s campaign with her 5,000,000 followers of which 1,000 support the campaign by pre-ordering John Doe’s product, then Susan Doe should be recognized as an affiliate and rewarded for his sales activities.  It is this deficiency that “Social Rewards-based” and “Affiliate-Based” crowd funding is designed to correct.

CROWD FUNDERS HIDE BEHIND THE SECURITIES REGULATION

It is correct that crowd funders are barred from offering equity in their venture, as regulated by the SEC in the United States; however, nothing stops crowd funding platforms or independent crowd funders from installing widely used affiliate marketing technology to reward backers for referrals resulting in pre-sale and future sale of their products.

MOST CROWD FUNDERS LACK INFLUENCE AND, OR PERSONAL NETWORK TO SUCCEED

In the 21st century social influence is king—and guess what? The success of your crowd funding project is driven by your ability to reach social influencers. In fact, the crowd funder that is most successful in convincing internet users, social influencers and media companies to share, will win.  Therefore, it is essential that you develop strategies to:

• Reach Social Influencers-who share your project with their supporters;
• Generate media publicity, online media listings and peer recommendations.

CROWD FUNDING PORTALS ARE USING YOU TO GROW THEIR BRAND(S)

Crowd funding portals benefit from free advertising you deliver, build big donor lists (that they use over and over to grow their business) and take a percentage of all the monies you raise, every-time you run a campaign on their platform.

CROWD FUNDING IS HARDWORK

Kickstarter and other crowd funding communities have a reputation of being a place where dreams get magically funded. However, this is far from the truth—as crowd funders do not have equal access to resources. Executing a successful crowd funding campaign is HARDWORK!!! Success is predicated on many variables including great design, great idea, amazing rewards, ability to reach donors outside of your personal network, consistent marketing and a little bit of luck.  Success is determined by the following factors:

1. Prepare: Develop Your Idea
2. Find Ubiquitous Product/Service  With Great Appeal:
3. Strategic Social Media
4. Great Design: Produce A Great Video
5. Prepare Helpful Media Page
6. Don’t Ask For Money Immediately
7. Build Interest Before You Close
8. Communicate Often & Keep It Personal
9. Appeal To Your Existing Fans
10. Appeal To Everyone Else
11. Complimentary Product Giveaway
12. Size Of Your Personal Network
13. Offer Complimentary Rewards
14. Promotional Efforts
15. Target & Connect With Business Supporters
16. Value Offered Business Supporters

OK SOUND THAT'S THE BAD NEWS...WHAT'S THE GOOD NEWS?

The good news is the fact that crowd funding is a great, an amazing opportunity. It has the potentially to fundamentally change the world. However, the business model can be improved dramatically.  In "Crowd Funding Is The Greatest Con In The History Of The Human Race Or The Greatest Opportunity" we offer useful tips on how you can deploy better crowd funding campaigns, and and work with your supporters and other crowd funders to succeed even when you fail, FOREVER.

ORDER YOUR COPY OF OUR INSTRUCTIONAL MANUAL AT A SPECIAL PRICE TODAY OR GET IT FREE WITH YOUR TALKPIX ACCOUNT. CLICK HERE TO REVIEW ALL THE VALUE-ADDED BENEFITS