CrowdSourcing or CrowdFunding: Small Donations Bring Big Benefits

Don and Derek

The Book Kahuna and his Corgi, Derek!

The Book Kahuna

In the Beginning, Was the Crowd…

I’ve been thinking about doing a blogpost on Crowdsourcing for a while now, and since I have my own campaign going on at this particular point in time through GOFUNDME, there’s no better time than the present to start discussing this new and innovative technique for raising seed capital.

What is Crowdfunding or Crowdsourcing?  The basis behind Crowdfunding is to use your social media contacts to make small donations toward a larger goal.  Whenever someone started a business in the past, there was always a bank loan involved or begging for money from family members.  Although a family member may still be connected through social media outlets, Crowdfunding cuts out the banking aspect completely by building a predetermined cash goal through very small donations.  If you have 250 Facebook connections and each one contributed $5.00 for four months, the total cash value of the individual $20.00 donations would be $5000.  The Internet has become the equalizing factor in getting your word out to build a corporate structure and also have financial resilience to see your dream enterprise through the inevitable hard times.  It’s amazing to think that having a very large social media framework can be a godsend to start a business or continue to keep a business viable whenever cash flow is needed.

I Need Money to Start a Worm Farm…

When I was going through the GOFUNDME website, I found that there were many people involved in personal campaigns who had various other fundraising projects:

  1. I need to raise money for a new car.
  2. Help me pay my tuition.
  3. Help me fund my trip to Italy.
  4. I’m looking to play bass in a rock band and need to get to Vegas
  5. Help me snowboard in Aspen this winter.

For whatever reason, people have varied interests and goals and there is no judgment call as to whether someone’s goals are worthy of funding or not worthy of funding.  I looked at this backdrop and decided that my goals are worthy. My business is about helping people get their message out through book publishing or learning the way to get to the corner office and move up the ladder. Someone with 30 years experience should give the sage advice back to those who can use it and prosper from it.

Click here to donate—> <— Click here to donate!

Shake Your MoneyMaker and Get it to Work…

I don’t know how my campaign is going to end, all I know is that I am going to attack this project in the same way that I attacked every project in my working life and that is to go for the throat and make this work.  I see this resource as a great democratizing factor in helping people get cash through nontraditional and easier accessible pathways.  This could be a way that opens up the spigot of cash that banks have been sitting on since the economic downturn began in 2008.  If businesses start to grow and expand based on capital sources that are not traditional in nature, then the banking establishment will need to wake up and see that they have been circumvented from the process of small business loans.  People who do not have the time to wait for a loan to be processed and approved can now go online and start a campaign through their social media network connections that will give a higher yield of success in a shorter amount of time with no interest payments.

Click—– Click

The Electronic/Digital Revolution in Book Publishing:  History, Industry Perspective (Print and E-book) and “How To” Publish Your E-book for Amazon Kindle

The Virtual Squeegee Man?

I know at this point in time, with the economic climate that we are in, that money is tight and asking for donations to fund a small business is not in the forefront of anyone’s giving this season.  No matter how my campaign turns out, I can make one guarantee: That any funds I receive are going to help me get more reference materials into the mainstream to help self publishers and independent publishers with their publishing needs.  I am all about giving back to my industry and helping other people to be successful.  I want to help young, inexperienced publishing professionals succeed and prosper.

Spend a Buck, and Launch a Dream…

I will be giving blog updates on this campaign as it progresses.  Since it has just started, there is not very much to say but I am looking for a very successful conclusion within the next few months.  It’s amazing to be blogging about something that’s new on the Internet, and be a part of it as it’s growing from infancy.  Crowdfunding could be a way to keep economic chaos from occurring and could kick-start the economy to greater productivity.  More people working is more people earning and not getting government checks.


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2 responses to “CrowdSourcing or CrowdFunding: Small Donations Bring Big Benefits

  1. Crowdfunding is a terrific idea, for all the reasons you mention. Crowdsourcing, on the other hand, is toxic. The current crop of “contest” sites, where hundreds of designers spend time to create a book cover, with only one “winning” a payment, has the potential to turn design into a hobby pursued only by amateurs, instead of a profession from which one can earn a living. I hope the providers and clients alike will consider the fundamental unfairness of this work model before diving in.

    • Hi Michele:

      Your definitions may not be all that accurate. Crowdsourcing and Crowdfunding can be synonymous in usage.

      Crowdsourcing: the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers

      Toxicity only exists when those in the market at a higher level are unable to compete with those who can supply quality goods and services at a lower level. Protectionism only makes consumables cost more, and thus applying a label of “Toxic” does not really pertain in this instance.

      Also, the concept of “Bidding Out” jobs has always been part of the production/manufacturing process. The term “Crowdsourcing” does not imply what geographic region the work has been sourced too, just that there is a bidding process involved.

      I’m all about “Free-Market Publishing”.

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