6 success factors of crowdfunding in digital publishing

6 success factors of crowdfunding in digital publishing

Crowdfunding benefits for digital publishers

Crowd funding is a shift from traditional stakeholder and publisher relationships. It democratizes the process of investment and allows bigger amounts to be raised without burdening any one person with the weight of investment. Unlike mainstream funding, data collected through crowdfunding can allow authors and publishers to spot trends, analyze their reader behavior, drive engagement and grow committed readers. It can be used to meet financial needs of bigger projects.

There are three parties involved in crowdfunding. The initiators who begin the funding and lead the efforts - the ones looking for funding, the backers - the ones who are willing to support the project and the intermediaries - who help with promotion and other activities.

Four different categories of crowdfunding can be identified: lending-based, donation based, reward-based, and equity-based.

So why look into crowdfunding? The average success rate of crowdfunding campaigns is 50%. 78% of crowdfunding campaigns exceed their goal. Have we convinced you? Let’s dive in.

Success factors in Crowdfunding

  1. Fundraisers for content

With crowdfunding, content creators needn’t worry about revenue to kick start their journey. In this system, readers get to contribute to content writers/publishers they deem worthy of their attention. This is helpful for authors in many ways as they get to relay on a loyal fanbase and get effective feedback through the contribution. Readers also often contribute to the content with their expertise or point of view. Crowdfunding facilitates a bond between readers and authors that is both tangible and fruitful for both parties.

  1. Easy way to raise funding

It can take ages to get the funding approval. This means you could lose out on those investigative stories or multi-channel production because you’re waiting for funding to come through a single source. This is where crowdfunding comes to your aid. Crowdfunding, albeit may require you to approach more people with your proposal, is an assured way to raise money quickly. The profit made could be shared by percentage or the exchange could be of any other benefit you can provide. With crowdfunding, you can publish your magazine print copies quicker, get quality stories rolling and hire resources and equipment without having to go through the regular hassle.

  1. Better network of skills

In journalism, everything boils down to networking. Who you know, who knows who, access and more are benefits that only come with networking. Crowdfunding helps you create another platform for networking. Getting access to equipment, subject expertise, skills, and even smaller things like event invites, contacts and more can really help out enhance your journalistic experience. Even on the backend, you could get technical support from your stakeholders if they’re technically inclined.

  1. Pitching a project and get the most unlikely stakeholders

You must have seen or been a part of the charity chains that have started being circulated via emails. This is a good example of placing pitches and having the most unexpected stakeholders. There may be stories certain crowds of the public are invested in and don’t mind paying for. Look at Patreon, it’s a whole platform to facilitate crowdfunding. Similarly, you could pitch your story ideas or brand ideas online and have the public participate. If you’ve got a good online presence, this should come easy to you. In exchange you could always provide them benefits and updates on your progress. It’s important to keep your stakeholders happy, they could always be involved again.

  1. Unconventional ideas finally have the room

Traditional investors may take longer to support your ideas and may need solid backing for your claims. This is fair because they’ll be carrying the weight of the investment. However with crowdfunding this is dulled down, you can approach your stakeholders with unconventional ideas. As the cost is split across the room, the possibility for good news is higher when compared to traditional settings.

  1. Your investors can become your most loyal customers

Once we’ve put money on the table, we’re invested. The essence of crowdfunding is to meet as many people as possible and make the most of the situation. Once people have invested in your efforts after having put their trust in you, the road ahead is easy. Did you start a Youtube channel with the help of crowdfunding? Your stakeholders are definitely going to keep track of your growth and relevance on the platform. This is to gauge the ROI but more importantly they become your primary viewers and sharers. This extra push is super helpful to improve your digital presence.