ASK & DISCUSS
INDEXIs crowdfunding all a big con?
11 years, 3 months ago - Vasco de Sousa
So, as some of you know, we had two crowdfunding campaigns for Dara Says. The first missed our target, and in the second we lost 15 percent of the money to "fees" from the US based crowdfunding website and the US based micro-payment website. This is despite the fact that most of our investment came from video views, rather than anything on the platform. They were fans of ours, no one found us through the crowdfunding website.
Fortunately, many of our supporters refused to give money through the crowdfunding platforms, and so not all our contributions were subject to platform fees. Happily, we were able to complete the film (we've now entered it in festivals and are awaiting responses.)
Well, now lets look at things from the donor's point of view. If you buy a DVD on eBay, and it's not delivered, eBay will refund your money (it won't always if it's pirated, but that's another story.) But, if there's fraud in crowdfunding, there's no such guarantee for the buyer. There sometimes appears to be, but the platform provides no real service.
Here's what one of my connections has to say about some of the fraud in crowdfunding:
http://sincityfinancier.wordpress.com/2014/04/04/after-pando-shows-clear-evidence-of-fraud-indiegogo-responds-by-deleting-anti-fraud-guarantee/
Films like "Pi" were filmmed before crowdfunding on a similar model (Pi was made with small contributions from a variety of donors.) Do we really need to give a tithe or more to some web developer in order to process our fans' money? It doesn't even protect our fans, and for the vast majority of us it doesn't add traffic, so what's the point?
Is crowdfunding all a big con so some web developer can take a big cut out of your fundraising efforts?
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11 years, 3 months ago - Vasco de Sousa
Thank you for that response. To be fair to Indiegogo, I suppose my connection is in the traditional investment business, and therefore in direct competition with crowdfunding. And, other online portals take huge cuts for no real customer service as well.
However, I think the fees they charge are too high, especially considering you get pretty much nothing in return. In our case, most of our backers had never heard of crowdfunding. We brought the platform more publicity than they brought us.
Response from 11 years, 3 months ago - Vasco de Sousa SHOW
11 years, 3 months ago - Marlom Tander
Indegogo clearly have no understanding of how fraud works, and one wonders also about their lawyers - how did that wording EVER get in? But dodgy to criminal outfits accessing capital via markets is as old as the hills, and happens on all exchanges.
But I suspect that crowdfunding platforms are easy targets for fraud, and that many more unfeasible products will be pushed. It's up to the crowd to flag up the fakes and prevent, as far as possible, the fools being parted from their money.
Response from 11 years, 3 months ago - Marlom Tander SHOW