Crowdfunding – collecting financing for a project from a “crowd” of support – has become an increasingly popular mean for artists to pay for the creating of their creative work. It’s become so successful, in fact, that celebrities such as Zach Braff, Rob Thomas, and Spike Lee have taken to the platform. Some think the celebrities take attention (and money) away from the unknown artists that need the financial support the most. Host Ian McPherson and Editorial Director Chris Davies tackle this topic and take to the streets for additional opinions. Listen to the episode below.
The basic facts on crowdfunding:
- There are more than 100 online platforms that bring together entrepreneurs and consumer-investors for projects that need funding.
- The fee on various platforms tends to be 3 to 9 percent of money raised.
- Kickstarter is dominant in the U.S., while RocketHub and IndieGoGo currently have better international presence.
- The average successful campaign on Kickstarter raises about $7,000, while an average failed campaign raises only about $900 in pledges. The average contribution tends to $75 per person.
- While success rates for other sites are not publicly known, Kickstarter reportedly has a success rate of about 45 percent.
- Friends, family and local consumers play a crucial role in generating early traction
Executive Producers: Nick Hansen, Chris Hansen
Producers: Ian McPherson, Chris Davies, Phil Lang
Recording Engineer and Mixing: Jerad Paul Fox
Host: Ian McPherson
Music provided by Niteppl – https://soundcloud.com/niteppl
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