Tomorrow a Kickstarter.com project entitled "Finding Vivian Maier" - a feature length documentary with a pre-production funding target of $20,000 will have overreached its target with a culm of $104,207 as of this posting. What makes "Finding Vivian Maier" - a feature length documentary film such a winner...Well the answer is in the authenticity of the project and most of all the person the film is ultimately about. Vivian Maier nanny and street photographer who caught history in time and asked for nothing in return will unfold in this feature length documentary and take her humble place in the pantheon of undiscovered talent while alive, only to become globally famous upon her death and with the discovery of her pictures a truly amazing story will finally be told thanks to John Maloof, Anthony Rydzon, and award-winning Danish documentary film maker, Lars Mortensen.
Sunday, March 13, 2011
Wednesday, March 2, 2011
Crowdfunding Cuts Out (Most Of) The Middlemen Categories: That's What Fans Are For
by WHITNEY BLAIR WYCKOFF NPR
For musician Anthony Cekay, a venture into the world of crowdfunding started with a poem.
A friend challenged Cekay, who double-majored in English and music in college, to write a poem that humanized the devil. From Cekay's poem grew a series of poems; the poems evolved into a melody; and that melody developed into an eight-hour piece of music, "The Spectacular War Museum."
Cekay was invited to present the piece in vignettes at a New York venue, but he wanted to offer an experience that went beyond a traditional performance: He wanted to stream his shows and have a jazz blogger offer a running commentary throughout. The problem was that the venue, while supportive of the project, didn't have the capital he needed to back the whole thing.
So, Cekay turned to the crowdfunding site RocketHub and raised $2,500 to pay for equipment, 20 musicians and tech support.
"We brought in well over 600 people both live and watching the performances recorded," Cekay says. "And that just wouldn't have been possible to do online without the crowdfunding element."
RocketHub is one of several crowdfunding sites burgeoning on the Internet that allow musicians — and other creative-types like filmmakers, writers and painters — to enact a kind of grassroots campaign online to earn money to fund their ideas. It may help musicians to get a career boost or pursue a nontraditional project, but it also allows fans to interact with musicians in a unique way.
For one thing, fans who contribute get a tangible reward from the artists. Cekay says his "fuelers" had a level of involvement that went beyond seeing one of his shows. Depending on how much money someone contributed, that person would receive a highlights DVD, mp3s or a books of poetry that inspired the music.
Isaiah Singer
Anthony Cekay's cousin Christopher Allen, who fueled Cekay's project, with Anthony Cekay and Brain Meece. Allen won a t-shirt in a raffle Cekay held each week to fuel the project.
Yancey Strickler, a co-founder of a crowdfunding site called Kickstarter, says crowdfunding is a business model that lies somewhere between commerce and patronage. Musicians get funding, but fans get something too: They get access.
"People like knowing where something is coming from and what the process has been to get there, and it gives you [as a consumer] an opportunity to be involved in a way that you never would otherwise," Strickler says.
The idea of selling seats to the creative process is nothing new. In fact, Brian Meece, a co-creator of RocketHub, says crowdfunding is a throwback — a throw way back.
"We sometimes say Beethoven-plus-social-media equals crowdfunding," he says. "Because back in Beethoven's day, he had patrons basically give him financial contributions so he could continue his work. And that's how he got paid."
The difference is that instead a handful of patrons funding an artist, crowdfunding has allowed more people to play that role. But despite the success that some artists have seen using crowdfunding, music researchers say it's not a replacement for the traditional record companies.
"I think the crowdfunding aspect is interesting, but shouldn't be overestimated," says Mark Mulligan, vice president and research director of Forrester Research.
There are practical obstacles. Crowdfunding can't do the dirty work that many musicians either can't, or flat-out don't want to do — things that a label might take care of, like marketing, promotions and distribution. In other words, it can help you buy a van for a tour, but it can't book your shows for you.
As Kristin Thomson, a consultant for the Future of Music Coalition, says, marketing through crowdfunding takes a certain kind of creativity — and an already-existing rolodex or fan base. It's difficult trying to build a fan base while you're trying to get people to financially support you, she says.
"Ultimately, a band wants to be out — playing music, writing music, performing," Mulligan says. "They don't want to be marketing and promoting."
Mulligan says that crowdfunding may resonate with certain types of artists, but for the mainstream, it's a means to an end: a stepping stone to a record label — or a life after one.
To Learn More Click Here
For musician Anthony Cekay, a venture into the world of crowdfunding started with a poem.
A friend challenged Cekay, who double-majored in English and music in college, to write a poem that humanized the devil. From Cekay's poem grew a series of poems; the poems evolved into a melody; and that melody developed into an eight-hour piece of music, "The Spectacular War Museum."
Cekay was invited to present the piece in vignettes at a New York venue, but he wanted to offer an experience that went beyond a traditional performance: He wanted to stream his shows and have a jazz blogger offer a running commentary throughout. The problem was that the venue, while supportive of the project, didn't have the capital he needed to back the whole thing.
So, Cekay turned to the crowdfunding site RocketHub and raised $2,500 to pay for equipment, 20 musicians and tech support.
"We brought in well over 600 people both live and watching the performances recorded," Cekay says. "And that just wouldn't have been possible to do online without the crowdfunding element."
RocketHub is one of several crowdfunding sites burgeoning on the Internet that allow musicians — and other creative-types like filmmakers, writers and painters — to enact a kind of grassroots campaign online to earn money to fund their ideas. It may help musicians to get a career boost or pursue a nontraditional project, but it also allows fans to interact with musicians in a unique way.
For one thing, fans who contribute get a tangible reward from the artists. Cekay says his "fuelers" had a level of involvement that went beyond seeing one of his shows. Depending on how much money someone contributed, that person would receive a highlights DVD, mp3s or a books of poetry that inspired the music.
Isaiah Singer
Anthony Cekay's cousin Christopher Allen, who fueled Cekay's project, with Anthony Cekay and Brain Meece. Allen won a t-shirt in a raffle Cekay held each week to fuel the project.
Yancey Strickler, a co-founder of a crowdfunding site called Kickstarter, says crowdfunding is a business model that lies somewhere between commerce and patronage. Musicians get funding, but fans get something too: They get access.
"People like knowing where something is coming from and what the process has been to get there, and it gives you [as a consumer] an opportunity to be involved in a way that you never would otherwise," Strickler says.
The idea of selling seats to the creative process is nothing new. In fact, Brian Meece, a co-creator of RocketHub, says crowdfunding is a throwback — a throw way back.
"We sometimes say Beethoven-plus-social-media equals crowdfunding," he says. "Because back in Beethoven's day, he had patrons basically give him financial contributions so he could continue his work. And that's how he got paid."
The difference is that instead a handful of patrons funding an artist, crowdfunding has allowed more people to play that role. But despite the success that some artists have seen using crowdfunding, music researchers say it's not a replacement for the traditional record companies.
"I think the crowdfunding aspect is interesting, but shouldn't be overestimated," says Mark Mulligan, vice president and research director of Forrester Research.
There are practical obstacles. Crowdfunding can't do the dirty work that many musicians either can't, or flat-out don't want to do — things that a label might take care of, like marketing, promotions and distribution. In other words, it can help you buy a van for a tour, but it can't book your shows for you.
As Kristin Thomson, a consultant for the Future of Music Coalition, says, marketing through crowdfunding takes a certain kind of creativity — and an already-existing rolodex or fan base. It's difficult trying to build a fan base while you're trying to get people to financially support you, she says.
"Ultimately, a band wants to be out — playing music, writing music, performing," Mulligan says. "They don't want to be marketing and promoting."
Mulligan says that crowdfunding may resonate with certain types of artists, but for the mainstream, it's a means to an end: a stepping stone to a record label — or a life after one.
To Learn More Click Here
Sunday, February 27, 2011
Palm Beach County millionaire creates 'crowdfunding' web site to help people in need
At microgiving.com, anyone can raise money for a creative project, worthy cause or to help pay bills
Say you want to release your debut album but need funding for CDs and marketing materials.
Suppose you're unemployed, broke and need a little cash to pay your rent.
Maybe you want to raise money to help end genocide.
There's a website that can help. The brainchild of Palm Beach County multimillionaire John Ferber, the MicroGiving Foundation links donors to creative projects, start-up businesses, worthy causes and people in need.
People who need money post their project, cause or business idea on http://www.microgiving.com along with how much money they need to raise. They typically offer donors a small token in return: a promise to pay it forward, a copy of a CD, a special thank-you note.
And then they wait for the money to roll in.
"We're sleeping and it's raising money," said Boca Raton High School teacher Sharona Kay. Students in her Holocaust class started a nonprofit organization in 2007 that sells colorful triangles in memory of Holocaust victims and uses the money to support global anti-genocide programs.
The group posted a profile and video on MicroGiving a couple of months ago and has raised more than $3,000.
MicroGiving.com is part of a growing phenomenon called crowdfunding, in which people with similar interests pool their money online to support a specific project or cause.
Ferber, who will be one of the featured millionaires on ABC's new reality show "Secret Milionaire" calls it the digital version of passing the hat.
A number of crowdfunding websites have popped up in the recent years. Each specializes in a particular area.
KickStarter, for instance, allows creative types to post their projects — a film, an art exhibit, an invention.
Kiva allows donors to provide microloans to poor people around the world to start businesses. At Donors Choose, people contribute to education projects in needy classrooms.
Ferber's initial idea for MicroGiving was to directly connect donors with people in dire straits.
In the aftermath of Hurricane Katrina, Ferber, 37, donated money to a major U.S. charity but it wasn't satisfying to him, and it wasn't feasible for him to travel to New Orleans.
"I wanted to do more," he said. "I wanted to help people directly."
It was the same frustration he felt when his sister-in-law died of cystic fibrosis. He gave to charity, but he wondered: Where is this money going? Who am I helping?
Then in 2006, Muhammad Yunus won the Nobel Peace Prize. The Bangladeshi economist developed the concept of microfinancing, providing loans to poor entrepreneurs who can't get traditional bank loans.
"I had a eureka of an idea," Ferber said. "Instead of a loan, it's a gift."
He decided to create a website.
To Learn More Click Here
Monday, February 21, 2011
Kickstarter Crowd-funding Hits $1,000,000 A Week
By Ryan Kim - Gigaom - Feb. 18, 2011, 1:00pm PT
Coming up on its two-year-anniversary, Kickstarter co-founder Yancey Strickler is struck by how little the site has changed. Maybe the biggest difference has been just how many artists and creative types have flocked to the crowd-funding site, helping validate a new form of fundraising that is opening the eyes of not only artists but technology leaders.
New York-based Kickstarter, which launched in April 2009, began with the promise of creating an intersection between patronage and commerce, where artists could enlist the help of supporters, who would in turn pledge their money and help validate the artist’s project. What began as a small endeavor has blossomed into a sizable business, one that now raises $1 million a week in pledges and has hit $35 million pledged overall. So far, Kickstarter has helped 5,000 projects get funded with about 2,500 actively fundraising at the moment. About 250 to 300 new proposals come in a day, hoping to appeal to a pool of supporters of more than 600,000 people. Strickler said the concept for Kickstarter, first conceived by co-founder Perry Chen, has proven to be a powerful tool in helping ideas bloom.
“There are thousands of projects we’ve helped that may not have existed otherwise, and we feel incredibly proud of that,” Strickler said. “I’ve personally backed 340 projects, and I’m thrilled to be involved in all of them. The mood here in the office is one of excitement. We have a sense of wonder about the ways people are using Kickstarter.”
The projects are indeed all over the map. One recent project is aimed at building a Robocop statue in Detroit, similar to the Rocky statue in Philadelphia. Another is aimed at replacing use of the N-word in The Adventures of Huckleberry Finn with the word “robot.” Independent game developer Muse Games is using Kickstarter to launch a limited edition of its game called CreaVures. Strickler said they’re all valid ways to draw support and attention around an idea.
The start-up has gotten a lot of press in tech circles for helping launch Diaspora, the open-source, social networking project. More recently, the TikTok and LunaTik iPod nano watch kits broke site records, raising close to a million dollars. But for all its success, technology is in the middle of the pack for Kickstarter categories in terms of number of projects. Leading the way are films by a long shot, followed by music and art. While the site has helped other would-be Diasporas and iPod accessories get off the ground, Strickler said Kickstarter is not meant to be a replacement for traditional VC or angel funding. ”We don’t want people looking to do a Series A; that won’t work too well with us,” he said.
It comes down to the site’s mission in creating discrete projects supporters can rally around, rather than boosting a start-up or business. Kickstarter, in fact, turns down 45 percent of applications because they don’t fit its requirements. Strickler said Kickstarter succeeds because of its simplicity and limits and because it calls for supporters to be rewarded, often in the form of early access or something produced by the project itself. That ensures everyone benefits, and it helps motivate supporters to spread the word. Projects can raise funds for up to 90 days, but the pledges aren’t collected unless the project hits its stated goal. That helps ensure there’s real demand and interest in the project and reduces the risk for backers.
The site, which makes money by taking a 5 percent cut of raised funds, has evolved modestly in its almost two years. One of the more significant changes was the introduction earlier this month of curated pages, which allows organizations, institutions and soon individuals to organize and manage multiple pages of Kickstarter projects. Strickler said it’s another way to highlight various projects on the site, which can only feature eight of them on its homepage. Overall, he sees more opportunities ahead as different groups discover the power of Kickstarter. He said theater and dance now have the highest success rates, in part, because they have strong communities that haven’t had tools like Kickstarter before. And early success stories are fueling even more projects.
“It’s all very organic,” Strickler said. “When you see one theater project make it, then you see 10 more because of the awareness.”
To Learn More Click Here
Coming up on its two-year-anniversary, Kickstarter co-founder Yancey Strickler is struck by how little the site has changed. Maybe the biggest difference has been just how many artists and creative types have flocked to the crowd-funding site, helping validate a new form of fundraising that is opening the eyes of not only artists but technology leaders.
New York-based Kickstarter, which launched in April 2009, began with the promise of creating an intersection between patronage and commerce, where artists could enlist the help of supporters, who would in turn pledge their money and help validate the artist’s project. What began as a small endeavor has blossomed into a sizable business, one that now raises $1 million a week in pledges and has hit $35 million pledged overall. So far, Kickstarter has helped 5,000 projects get funded with about 2,500 actively fundraising at the moment. About 250 to 300 new proposals come in a day, hoping to appeal to a pool of supporters of more than 600,000 people. Strickler said the concept for Kickstarter, first conceived by co-founder Perry Chen, has proven to be a powerful tool in helping ideas bloom.
“There are thousands of projects we’ve helped that may not have existed otherwise, and we feel incredibly proud of that,” Strickler said. “I’ve personally backed 340 projects, and I’m thrilled to be involved in all of them. The mood here in the office is one of excitement. We have a sense of wonder about the ways people are using Kickstarter.”
The projects are indeed all over the map. One recent project is aimed at building a Robocop statue in Detroit, similar to the Rocky statue in Philadelphia. Another is aimed at replacing use of the N-word in The Adventures of Huckleberry Finn with the word “robot.” Independent game developer Muse Games is using Kickstarter to launch a limited edition of its game called CreaVures. Strickler said they’re all valid ways to draw support and attention around an idea.
The start-up has gotten a lot of press in tech circles for helping launch Diaspora, the open-source, social networking project. More recently, the TikTok and LunaTik iPod nano watch kits broke site records, raising close to a million dollars. But for all its success, technology is in the middle of the pack for Kickstarter categories in terms of number of projects. Leading the way are films by a long shot, followed by music and art. While the site has helped other would-be Diasporas and iPod accessories get off the ground, Strickler said Kickstarter is not meant to be a replacement for traditional VC or angel funding. ”We don’t want people looking to do a Series A; that won’t work too well with us,” he said.
It comes down to the site’s mission in creating discrete projects supporters can rally around, rather than boosting a start-up or business. Kickstarter, in fact, turns down 45 percent of applications because they don’t fit its requirements. Strickler said Kickstarter succeeds because of its simplicity and limits and because it calls for supporters to be rewarded, often in the form of early access or something produced by the project itself. That ensures everyone benefits, and it helps motivate supporters to spread the word. Projects can raise funds for up to 90 days, but the pledges aren’t collected unless the project hits its stated goal. That helps ensure there’s real demand and interest in the project and reduces the risk for backers.
The site, which makes money by taking a 5 percent cut of raised funds, has evolved modestly in its almost two years. One of the more significant changes was the introduction earlier this month of curated pages, which allows organizations, institutions and soon individuals to organize and manage multiple pages of Kickstarter projects. Strickler said it’s another way to highlight various projects on the site, which can only feature eight of them on its homepage. Overall, he sees more opportunities ahead as different groups discover the power of Kickstarter. He said theater and dance now have the highest success rates, in part, because they have strong communities that haven’t had tools like Kickstarter before. And early success stories are fueling even more projects.
“It’s all very organic,” Strickler said. “When you see one theater project make it, then you see 10 more because of the awareness.”
To Learn More Click Here
Sunday, February 20, 2011
Crowd Power according to Gene Sharp
BOSTON — Halfway around the world from Tahrir Square in Cairo, Egypt, a U.S. intellectual shuffles about his cluttered brick row house in a working-class Boston neighborhood. His name is Gene Sharp. Stoop-shouldered and white-haired at 83, he grows orchids, has yet to master the Internet and hardly seems like a dangerous man.
But for the world's despots, his ideas can be fatal.
Few Americans have heard of Sharp. But for decades, his practical writings on nonviolent revolution — most notably "From Dictatorship to Democracy," a 93-page guide to toppling autocrats, available for download in 24 languages — have inspired dissidents around the world, including in Myanmar, Bosnia, Estonia and Zimbabwe, and now Tunisia and Egypt.
When Egypt's April 6 Youth Movement was struggling to recover from a failed dissident effort in 2005, its leaders tossed around "crazy ideas" about bringing down government, said Ahmed Maher, a leading strategist. They stumbled on Sharp while examining the Serbian movement Otpor, which he had influenced.
When the nonpartisan International Center on Nonviolent Conflict, which trains democracy activists, slipped into Cairo several years ago to conduct a workshop, among the papers it distributed was Sharp's "198 Methods of Nonviolent Action," a list of tactics that includes hunger strikes, "protest disrobing" and "disclosing identities of secret agents."
To Learn More Click Here
Saturday, February 19, 2011
Too small to bag a bulk discount? Join the 'crowdsourcing' clubs
By JO THORNHILL
Last updated at 9:24 PM on 19th February 2011
As food and fuel prices continue to soar, now is a great time to club together to get the best deals.
From forming community-based co-operatives to using cutting-edge websites offering special rates on the cost of utilities, a joint approach can boost spending power in these tough times.
Financial Mail looks at the best ways to team up.
Online Collectives
Trainee barrister Emma Knight signed up to incahoot.com a month ago but she is already telling her friends to join. Incahoot is one of a new breed of 'collective' or 'crowdsourcing' websites that use bulk buying to negotiate special rates and discounted deals.
It is free to join and Incahoot currently has a handful of deals on offer - these include broadband, gas and electricity, iPhone handsets and mobile phone packages.
Emma, 24, who lives with husband, Matthew, 26, a research executive, in Wandsworth, south London, went to Incahoot on the recommendation of a friend as she wanted a better mobile phone deal with O2. A simple switch saved her £360.
'I've been with O2 for six years and was spending £20 a month for which I got 600 free minutes and 1,000 free texts each month,' says Emma. 'With the Incahoot deal I got a free smartphone and for £20 a month I now get 900 free minutes per month and 5,000 free texts.
'The same deal with O2 on the High Street would cost me £40 per month - so I've made a big monthly saving. The cherry on the cake was the £120 cashback for doing the deal.'
Emma is so impressed with Incahoot she says she will switch to the broadband and energy deals once her current contracts come to an end. For each friend she recommends who signs up to a deal, she will also get a £10 reward.
'I've made a note in my diary to switch using Incahoot once my current contracts expire as I don't want to have to pay a penalty,' says Emma. 'Incahoot will email an alert.'
Another collective website - groupon.co.uk - claims to be able to negotiate discounts of 50 to 90 per cent on deals with popular retailers as well as local businesses.
You register for free and can check out the national and local deals in your area - from discounts on restaurant meals and cinema seats to cut-price spa treatments.
Co-operatives
The co-operative model is becoming more fashionable in this age of austerity, but it is certainly not new. The first co-op was set up in 1844 by workers in Rochdale, Lancashire, angry that food prices were too high and that the shops were owned by the mill owners.
The workers began their movement by offering staple products such as butter and sugar in their own shop, banding together to negotiate the best wholesale prices for members.
Today, as more households are seeing their budgets stretched, the idea of banding together with others in the local community to maximise buying power has never been more relevant.
Ed Mayo, secretary general of trade association Co-operatives UK, says there are more than 400 buying cooperatives.
'Our research shows half of consumers are planning to save money by co-operating with others this year,' he says. 'Co-operatives have always had a good reputation for being ethical, sustainable and member-controlled, but now the cost-saving aspects are becoming increasingly important.'
The Government will launch a consumer White Paper next month that will include proposals to encourage everyone to join local co-operatives, for example to buy groceries.
There are a wide range of cooperative businesses, but they all have basic principles in common - they are owned and run by members and profits are used for the benefit of members.
Joanna MacDouall helps to run the True Food Community Co-operative in Reading, Berkshire. The group has grown out of a small buying club set up by several independent wholefood shop owners who were forced to close their businesses following the building of a large shopping centre in the town 12 years ago.
True Food is a similar concept to the People's Supermarket, based in Holborn, central London, which features in a Channel 4 programme on Sunday evenings. True Food initially ran markets every other weekend at local community centres, with the focus on organic food.
Today, the co-operative has more than 200 members and tens of thousands of customers flock to its Grove Road shop as well as the regular markets.
Membership is £10 a year, but that includes a £20 shopping voucher as well as various special offers and discounts.
Although the ethical and healthy living aspects of the co-operative are what tend to attract people initially, Joanna believes there are significant savings to be made. 'There is often a perception we'll be more expensive because our goods are organic,' she says.
'But we're usually buying direct from suppliers, cutting out wholesalers, so we can really reduce costs and bargain hard for our members.
'As prices are soaring in the supermarkets, many of our shoppers are pleasantly surprised at our prices, particularly for our fruit and veg.'
Joanna also says most of True Foods' goods are sold loose, so shoppers can buy as much or as little as they want.
The aim is to minimise waste, but this can also cut bills. It is the antithesis of the supermarkets' 'buy one get one free' offers, which encourage consumers to pay more for goods they often don't want. 'Sometimes you might only want one apple or a small amount of cereals or pulses,' says Joanna. 'At our shop you can do that. You don't have to pay for more than you need.'
Joanna, the chief buyer for the group, also runs the shop with manager Alex Trott and markets manager Chris Aldridge - one of the founders. In total there are four paid members of staff, but the cooperative also relies on volunteers.
'We are so much more than a buying club now,' says Joanna. 'As more consumers become disillusioned with the big supermarkets and others look to make their household budget go further, this is when co-operatives are filling a vital gap in the market.'
To find a food co-operative in your area, visit foodcoops.org. For more on setting up a co-operative, visit uk.coop.
Investment clubs
Being a member of a club has benefits when it comes to investment as it means you can tap into the ideas of other investors.
Investment clubs can be set up by families, work colleagues and friends up to a legal maximum of 20 people.
The aim is to pool cash and ideas and then invest in the stock market. There should also be less risk as the larger pot of pooled cash means that investments can be spread across a wider variety of shares.
Clubs usually meet regularly, typically once a month, to discuss investment strategies. Members all pay the same amount into a collective fund, for example £25 to £30 a month. Ideas are then discussed and members share their opinions and research on particular listed companies.
A treasurer is nominated to look after the buying and selling of shares and a secretary keeps the minutes of meetings. There is more information on setting up and running an investment club at proshareclubs.co.uk. It also has a manual for £25.
House buying
With the average house price now six times the average annual wage, it is not surprising that millions of buyers are shut out of the property market. And those on their own - without the extra income of a spouse or partner - face an even greater struggle to get on the ladder.
Joining with friends or a family member to buy property has become increasingly common since the property boom. It can give those fed up with wasting cash on rent that all-important first foot on the ladder.
Many banks and building societies will lend mortgages to groups of friends, typically up to four unrelated people. David Hollingworth, mortgage expert at broker London & Country in Bath, Somerset, says that Britannia - now part of Co-operative Financial Services - NatWest, HSBC and Santander are probably the best known for this.
'Lenders will usually base the mortgage amount on the two biggest salaries where there are more than two friends involved in the purchase,' says Hollingworth.
'But if three or four people are named on the mortgage application they will all be jointly and severally liable for repayments. This means if one person is unable to pay, for example due to job loss, the other applicants will still be expected to meet the full monthly payment.'
Hollingworth advises that friends draw up contracts to avoid disputes at a later date, for example if one person in the group wants to move out or sell.
'It is a good idea to know in advance what will happen when circumstances change,' he says. 'It can avoid problems and fallouts further down the line.'
Best friends James Bertioli, 23, and Stefan Canavan, 24, have just bought their first property - a two-bedroom flat in Balham, south London. The two management consultants paid £320,000 for the property, putting down a 20 per cent deposit, and both agree it would have been impossible to buy on their own.
They have taken out a lifetime tracker loan from ING Direct with an interest rate at 3.04 percentage points above the Bank of England base rate, which is 0.5 per cent at the moment. It means their starting pay rate is 3.54 per cent and their monthly repayments are £1,300.
In a further display of how clubbing together can work, a family friend has lent the pair cash to renovate the flat.
'The property needs some work, but we hope we can add value that way,' says James.
'If it is successful, our aim is to try to sell quickly at a profit and buy somewhere else, with an eye on another development that could make us money.'
To Learn More Click Here
Last updated at 9:24 PM on 19th February 2011
As food and fuel prices continue to soar, now is a great time to club together to get the best deals.
From forming community-based co-operatives to using cutting-edge websites offering special rates on the cost of utilities, a joint approach can boost spending power in these tough times.
Financial Mail looks at the best ways to team up.
Online Collectives
Trainee barrister Emma Knight signed up to incahoot.com a month ago but she is already telling her friends to join. Incahoot is one of a new breed of 'collective' or 'crowdsourcing' websites that use bulk buying to negotiate special rates and discounted deals.
It is free to join and Incahoot currently has a handful of deals on offer - these include broadband, gas and electricity, iPhone handsets and mobile phone packages.
Emma, 24, who lives with husband, Matthew, 26, a research executive, in Wandsworth, south London, went to Incahoot on the recommendation of a friend as she wanted a better mobile phone deal with O2. A simple switch saved her £360.
'I've been with O2 for six years and was spending £20 a month for which I got 600 free minutes and 1,000 free texts each month,' says Emma. 'With the Incahoot deal I got a free smartphone and for £20 a month I now get 900 free minutes per month and 5,000 free texts.
'The same deal with O2 on the High Street would cost me £40 per month - so I've made a big monthly saving. The cherry on the cake was the £120 cashback for doing the deal.'
Emma is so impressed with Incahoot she says she will switch to the broadband and energy deals once her current contracts come to an end. For each friend she recommends who signs up to a deal, she will also get a £10 reward.
'I've made a note in my diary to switch using Incahoot once my current contracts expire as I don't want to have to pay a penalty,' says Emma. 'Incahoot will email an alert.'
Another collective website - groupon.co.uk - claims to be able to negotiate discounts of 50 to 90 per cent on deals with popular retailers as well as local businesses.
You register for free and can check out the national and local deals in your area - from discounts on restaurant meals and cinema seats to cut-price spa treatments.
Co-operatives
The co-operative model is becoming more fashionable in this age of austerity, but it is certainly not new. The first co-op was set up in 1844 by workers in Rochdale, Lancashire, angry that food prices were too high and that the shops were owned by the mill owners.
The workers began their movement by offering staple products such as butter and sugar in their own shop, banding together to negotiate the best wholesale prices for members.
Today, as more households are seeing their budgets stretched, the idea of banding together with others in the local community to maximise buying power has never been more relevant.
Ed Mayo, secretary general of trade association Co-operatives UK, says there are more than 400 buying cooperatives.
'Our research shows half of consumers are planning to save money by co-operating with others this year,' he says. 'Co-operatives have always had a good reputation for being ethical, sustainable and member-controlled, but now the cost-saving aspects are becoming increasingly important.'
The Government will launch a consumer White Paper next month that will include proposals to encourage everyone to join local co-operatives, for example to buy groceries.
There are a wide range of cooperative businesses, but they all have basic principles in common - they are owned and run by members and profits are used for the benefit of members.
Joanna MacDouall helps to run the True Food Community Co-operative in Reading, Berkshire. The group has grown out of a small buying club set up by several independent wholefood shop owners who were forced to close their businesses following the building of a large shopping centre in the town 12 years ago.
True Food is a similar concept to the People's Supermarket, based in Holborn, central London, which features in a Channel 4 programme on Sunday evenings. True Food initially ran markets every other weekend at local community centres, with the focus on organic food.
Today, the co-operative has more than 200 members and tens of thousands of customers flock to its Grove Road shop as well as the regular markets.
Membership is £10 a year, but that includes a £20 shopping voucher as well as various special offers and discounts.
Although the ethical and healthy living aspects of the co-operative are what tend to attract people initially, Joanna believes there are significant savings to be made. 'There is often a perception we'll be more expensive because our goods are organic,' she says.
'But we're usually buying direct from suppliers, cutting out wholesalers, so we can really reduce costs and bargain hard for our members.
'As prices are soaring in the supermarkets, many of our shoppers are pleasantly surprised at our prices, particularly for our fruit and veg.'
Joanna also says most of True Foods' goods are sold loose, so shoppers can buy as much or as little as they want.
The aim is to minimise waste, but this can also cut bills. It is the antithesis of the supermarkets' 'buy one get one free' offers, which encourage consumers to pay more for goods they often don't want. 'Sometimes you might only want one apple or a small amount of cereals or pulses,' says Joanna. 'At our shop you can do that. You don't have to pay for more than you need.'
Joanna, the chief buyer for the group, also runs the shop with manager Alex Trott and markets manager Chris Aldridge - one of the founders. In total there are four paid members of staff, but the cooperative also relies on volunteers.
'We are so much more than a buying club now,' says Joanna. 'As more consumers become disillusioned with the big supermarkets and others look to make their household budget go further, this is when co-operatives are filling a vital gap in the market.'
To find a food co-operative in your area, visit foodcoops.org. For more on setting up a co-operative, visit uk.coop.
Investment clubs
Being a member of a club has benefits when it comes to investment as it means you can tap into the ideas of other investors.
Investment clubs can be set up by families, work colleagues and friends up to a legal maximum of 20 people.
The aim is to pool cash and ideas and then invest in the stock market. There should also be less risk as the larger pot of pooled cash means that investments can be spread across a wider variety of shares.
Clubs usually meet regularly, typically once a month, to discuss investment strategies. Members all pay the same amount into a collective fund, for example £25 to £30 a month. Ideas are then discussed and members share their opinions and research on particular listed companies.
A treasurer is nominated to look after the buying and selling of shares and a secretary keeps the minutes of meetings. There is more information on setting up and running an investment club at proshareclubs.co.uk. It also has a manual for £25.
House buying
With the average house price now six times the average annual wage, it is not surprising that millions of buyers are shut out of the property market. And those on their own - without the extra income of a spouse or partner - face an even greater struggle to get on the ladder.
Joining with friends or a family member to buy property has become increasingly common since the property boom. It can give those fed up with wasting cash on rent that all-important first foot on the ladder.
Many banks and building societies will lend mortgages to groups of friends, typically up to four unrelated people. David Hollingworth, mortgage expert at broker London & Country in Bath, Somerset, says that Britannia - now part of Co-operative Financial Services - NatWest, HSBC and Santander are probably the best known for this.
'Lenders will usually base the mortgage amount on the two biggest salaries where there are more than two friends involved in the purchase,' says Hollingworth.
'But if three or four people are named on the mortgage application they will all be jointly and severally liable for repayments. This means if one person is unable to pay, for example due to job loss, the other applicants will still be expected to meet the full monthly payment.'
Hollingworth advises that friends draw up contracts to avoid disputes at a later date, for example if one person in the group wants to move out or sell.
'It is a good idea to know in advance what will happen when circumstances change,' he says. 'It can avoid problems and fallouts further down the line.'
Best friends James Bertioli, 23, and Stefan Canavan, 24, have just bought their first property - a two-bedroom flat in Balham, south London. The two management consultants paid £320,000 for the property, putting down a 20 per cent deposit, and both agree it would have been impossible to buy on their own.
They have taken out a lifetime tracker loan from ING Direct with an interest rate at 3.04 percentage points above the Bank of England base rate, which is 0.5 per cent at the moment. It means their starting pay rate is 3.54 per cent and their monthly repayments are £1,300.
In a further display of how clubbing together can work, a family friend has lent the pair cash to renovate the flat.
'The property needs some work, but we hope we can add value that way,' says James.
'If it is successful, our aim is to try to sell quickly at a profit and buy somewhere else, with an eye on another development that could make us money.'
To Learn More Click Here
Monday, February 14, 2011
Say Goodbye to the Permission Business!
Soon you won't need permission to make films, set up TV channels, publish books or try out inventions. No wonder the old industries are scared
by Adrian Hon
Adrian Hon is the Founder and Chief Creative at Six to Start, an online games company; he originally trained as a neuroscientist at Cambridge and Oxford. He takes a strong interest in the controversies surrounding intellectual copyright.
One of the most annoying things in life is asking for permission: permission to build an extension, permission to volunteer at a school, permission to start a business. It’s always irritating to imagine some distant bureaucrat with little interest or understanding of your life in control of your fate.
Almost every sphere of life and work – from education to science to media to retail – involves us asking for permission every time we want make or do anything, whether it’s to start a project, raise funding or get access to the market. The ‘permission system’ suffocates creativity, but it’s so pervasive that we can hardly imagine a different world. Yet it’s finally being dismantled, brick by brick, by the internet, and we’re all going to benefit.
Imagine you’re a bright young filmmaker with a brilliant idea for a new documentary. When you approach a broadcaster, you find that they’re only concentrating on five subject areas this year, so you change your idea accordingly. After some emails, you finally get to pitch your idea to a commissioner who tells you that they’re already making a similar show, so you’ll either have to wait a year or change it drastically. You opt to change it, trying to ignore the feeling that this is a mistake.
Now the commissioner likes your idea, but they’ll have to check what channel controller thinks. A week passes, and unfortunately it seems that your idea doesn’t fit within the channel’s strategic priorities, but you should definitely try again.
After a few rounds of this, you become good at guessing what commissioners will like, and following some dedicated networking, you discover what the channel priorities really are. You learn how to craft ideas that will have the right mix of buzz and relevancy and risk, and you’re rewarded with commissions. In short, you’ve become an expert at creating mediocre ideas to order.
I don’t mean to be hard on the TV industry. The few commissioners that I know are all good people who want to do a good job. But when you’re bombarded by dozens of ideas a week and you always need to get permission from your bosses, it’s safer to stick with tried and tested idea than taking a risk – after all, they don’t want to get fired.
The same story applies to every other industry where the cost of production has been high and the amount of ’shelf space’ has been limited, whether for books or clothes or computer programmes. Back in the days where it used to cost a lot more to print a book or manufacture a new product and you could only fit so many into a shop, it made sense to be cautious and ensure that investments were made carefully; and since there were fewer people coming up with ideas, the ‘permission bottlenecks’ were also less of a problem.
But the world has changed. With new technology, the cost of producing consumer goods has plummeted; with the internet, we have unlimited shelf space; and with better education, we have billions of people who are capable of coming up with good ideas.
TECHNOLOGY
Almost every week now, we hear about some student who’s created a hit movie or iPhone app from their bedrooms. It’s hardly surprising – cutting-edge computers, cameras, and software have all become affordable (and just as importantly, accessible) to millions. When you can produce an entire radio show or game for free, you don’t need anyone’s investment or permission, giving you complete creative freedom; what’s more, initiatives like Creative Commons make it possible to ‘automatically’ licence music, photos, and artworks for your project.
It’s not stopping with media, either. The next revolution in production is likely to come from 3D printing, a technology that allows people to ‘print’ successive layers of plastics or metal to create fantastically complex and intricate 3D shapes. Thousands of people are already taking advantage of 3D printing services like Shapeways to create mechanical parts, prototypes, sculptures, and toys, at a cost and speed that would have
been simply impossible just five years ago. Best of all, you don’t need permission to print your new 3D toy; companies are perfectly happy to just take your money.
FUNDING
Of course, some projects will still need serious investment, like producing a major movie or building custom cars, and the more money you need, the harder it gets to find someone who’ll share your vision and give you ‘permission’.
Once again, though, the internet is eliminating this bottleneck. Crowdfunding sites like Kickstarter and Indiegogo make it possible for
creators to solicit pledges (a cross between pre-sales and donations) from anyone with a computer and a credit card. As long as there are a few dozen or hundred people in the entire world who like your idea, you can raise thousands of pounds, opening the door to much more niche or original or risky projects; and if your idea is popular, you can raise hundreds of thousands.
I’ve just started a project on Kickstarter myself, to help print a book I’m writing called A History of the Future in 100 Objects (inspired by the excellent Radio 4 show). In just four days, I raised my target of $2500 and donations are still coming in, mostly from people I’ve never met before. I didn’t need anyone’s permission to start that project – I just did it.
Displaying products is stores is no longer crucial
ACCESS TO MARKET
Making your product is only half of the challenge – getting access to the marketplace is just as important. Every aspiring inventor knows how difficult it is to convince retailers to display your product, even if you offer it for practically free. It didn’t matter how good your product was – you still needed permission from a buyer to sell it.
But now, Amazon and Apple have completely upended the system; the internet provides unlimited shelf space, making it possible to stock and display as many products as people want to sell. Why bother holding people up by making them ask for permission?
Some industries have proved more resistant; for example, people still understandably prefer to buy clothes and fashion accessories in person, leaving traditional retailers with outsize power. Yet even then, marketplaces like Etsy that sell handmade items (with over $300 million in sales last year) have proved that change is possible.
TELEVISION
The TV industry is an interesting case, particularly in the UK where a handful of broadcasters like the BBC and ITV not only commission and fund the biggest programmes but also control the means of distribution. As a result, you can’t get anywhere without asking a whole host of commissioners and executives for permission. It’s a lot of power for only a few people to have, especially when they claim to speak for the public.
That’s why YouView, the ‘next-generation Freeview’, is so important to the broadcasters that fund it (BBC, ITV, C4, and Five); they’re absolutely terrified of a future where people turn on their Google or Apple TV and, instead of being welcomed by BBC1, they’re shown video content from YouTube and Netflix that could have been made by anyone, anywhere. Filmmakers won’t need broadcasters’ permission to reach an audience – and broadcasters will have lost control.
YouView is the one thing that will ensure the first five channels on TV will still belong to the old broadcasters, at least for a few more precious years. Unfortunately for them, YouView’s launch has slipped into 2012 (hardly surprising given the terrible track record of British broadcasters’ forays into technology).
The defence of the ‘permission system’ lies in the belief that the best way of allocating limited resources is by getting experts to
figure out what the market wants, having them identify the best ideas, and then doling out money accordingly.
But not only is technology rendering this system superfluous; the plain fact is that the system never worked well in the first place. Publishers and commissioners like to imagine that their skills and experience are the only way to unearth the diamonds in the rough, conveniently ignoring that fact that Harry Potter was rejected by twelve publishing houses before Bloomsbury picked it up, and that the majority of what’s printed and on TV is mediocre.
Let’s face it, no-one can really predict what the market will want. JK Rowling didn’t think “I know what, wizards and boarding schools are fashionable!” before she wrote the fastest selling books in history; Philip Pullman didn’t worry about whether a subtle, complex story about sin and free will would work for children. But what publishers and commissioners can do is echo buzzwords and fund me-too products like reality shows and action blockbusters, which succeed largely thanks to expensive marketing and a lack of alternatives. Thankfully, the success of films like The King’s Speech and Inception shows that audiences are not quite as stupid as we might imagine.
So, if you can’t reliably predict success, what do you do? A recent study of highly successful entrepreneurs by Saras Sarasvathy suggests that making a product and putting it out into the market as soon as possible is the best strategy; when asked about what kind of market research they would conduct for a hypothetical product, one entrepreneur said:
“OK, I need to know which of their various groups of students, trainees, and individuals would be most interested so I can target the audience a little bit more. What other information… I’ve never done consumer marketing, so I don’t really know. I think probably… I think mostly I’d just try to… I would… I wouldn’t do all this, actually. I’d just go sell it. I don’t believe in market research. Somebody once told me the only thing you need is a customer. Instead of asking all the questions, I’d try and make some sales. I’d learn a lot, you know: which people, what were the obstacles, what were the questions, which prices work better. Even before I started production. So my market research would actually be hands-on actual selling.”
That’s real capitalism. What we have right now isn’t capitalism or a free market, it’s an unholy mashup of a (poorly) planned economy and an oligopoly, and it even extends to completely different sectors like academic research, where you often have to abase yourself before trend-driven, risk-averse, time-poor funding committees.
With every extra person who can say ‘no’ to an idea, the more likely it is that mediocrity will prevail. That’s the problem when companies and governments become too large – there are too many people whose job it is to simply say ‘no’. The notable exceptions are publishers like Amazon and Apple, who have learned that it pays to be permissive.
Navigating the obstacle course of everyone who can say ‘no’ has a truly chilling effect on creativity. You start doubting your ideas,
and you enter a tiring game of guessing what the gatekeepers want rather than what you think or hope will be successfully. You stop caring. As a person who designs games and writes for a living, I find it’s hard to overstate exactly how liberating it is to be freed from the permission system.
The brave new ‘permissive world’ isn’t perfect, though. Freedom can be overwhelming, and creatives will be exposed to more competition (such as the 300,000 iPhone apps). But these downsides are more than balanced out by the fact that you can take on more creative risk; and that when the middlemen are taken out of the equation, you waste less time and earn more per sale, making niche ideas more viable. You don’t need a million buyers to be successful – just a thousand true fans can be enough. Your success no longer rests on the whims of a few ‘experts’.
A permissive world will let us pursue projects we truly care about, and that can only mean good things for the power and quality of our work. Once upon a time, any artist who bucked the system and demanded creative control over their work ended up on a one-way trip into penury. No longer.
This isn’t the first time that the permission system has changed. In the 19th century, the Academie des Beaux-Arts in Paris dominated the world of art; to succeed, artists had to toe the line and stick to traditional, approved painting styles. It was only when Monet, Renoir, Pissaro and Sisley scandalously created a new, independent association to exhibit their works directly to the public that Impressionism – and arguably, modern art as a whole – could truly flower.
People, throughout all the ages, have chafed against the need to gain permission to create what they want. When we’re young, we’re amazed and furious at how unfair and arbritrary this is, but as we grow older, we internalise the rules and start censoring our own ideas.
Ultimately, we become part of the permission system. We begin to say ‘no’ to others because that’s what we grew up with, and that’s the way the world works. For many, it’s profoundly frightening to think that one day, they won’t be able to say ‘no’ – what will they do? What will happen to their jobs?
But there is a different way. We can give people freedom, we can save money and time, and we can unlock a wealth of creativity, just by saying one simple word: ‘yes’.
To Learn More Click Here
by Adrian Hon
Adrian Hon is the Founder and Chief Creative at Six to Start, an online games company; he originally trained as a neuroscientist at Cambridge and Oxford. He takes a strong interest in the controversies surrounding intellectual copyright.
One of the most annoying things in life is asking for permission: permission to build an extension, permission to volunteer at a school, permission to start a business. It’s always irritating to imagine some distant bureaucrat with little interest or understanding of your life in control of your fate.
Almost every sphere of life and work – from education to science to media to retail – involves us asking for permission every time we want make or do anything, whether it’s to start a project, raise funding or get access to the market. The ‘permission system’ suffocates creativity, but it’s so pervasive that we can hardly imagine a different world. Yet it’s finally being dismantled, brick by brick, by the internet, and we’re all going to benefit.
Imagine you’re a bright young filmmaker with a brilliant idea for a new documentary. When you approach a broadcaster, you find that they’re only concentrating on five subject areas this year, so you change your idea accordingly. After some emails, you finally get to pitch your idea to a commissioner who tells you that they’re already making a similar show, so you’ll either have to wait a year or change it drastically. You opt to change it, trying to ignore the feeling that this is a mistake.
Now the commissioner likes your idea, but they’ll have to check what channel controller thinks. A week passes, and unfortunately it seems that your idea doesn’t fit within the channel’s strategic priorities, but you should definitely try again.
After a few rounds of this, you become good at guessing what commissioners will like, and following some dedicated networking, you discover what the channel priorities really are. You learn how to craft ideas that will have the right mix of buzz and relevancy and risk, and you’re rewarded with commissions. In short, you’ve become an expert at creating mediocre ideas to order.
I don’t mean to be hard on the TV industry. The few commissioners that I know are all good people who want to do a good job. But when you’re bombarded by dozens of ideas a week and you always need to get permission from your bosses, it’s safer to stick with tried and tested idea than taking a risk – after all, they don’t want to get fired.
The same story applies to every other industry where the cost of production has been high and the amount of ’shelf space’ has been limited, whether for books or clothes or computer programmes. Back in the days where it used to cost a lot more to print a book or manufacture a new product and you could only fit so many into a shop, it made sense to be cautious and ensure that investments were made carefully; and since there were fewer people coming up with ideas, the ‘permission bottlenecks’ were also less of a problem.
But the world has changed. With new technology, the cost of producing consumer goods has plummeted; with the internet, we have unlimited shelf space; and with better education, we have billions of people who are capable of coming up with good ideas.
TECHNOLOGY
Almost every week now, we hear about some student who’s created a hit movie or iPhone app from their bedrooms. It’s hardly surprising – cutting-edge computers, cameras, and software have all become affordable (and just as importantly, accessible) to millions. When you can produce an entire radio show or game for free, you don’t need anyone’s investment or permission, giving you complete creative freedom; what’s more, initiatives like Creative Commons make it possible to ‘automatically’ licence music, photos, and artworks for your project.
It’s not stopping with media, either. The next revolution in production is likely to come from 3D printing, a technology that allows people to ‘print’ successive layers of plastics or metal to create fantastically complex and intricate 3D shapes. Thousands of people are already taking advantage of 3D printing services like Shapeways to create mechanical parts, prototypes, sculptures, and toys, at a cost and speed that would have
been simply impossible just five years ago. Best of all, you don’t need permission to print your new 3D toy; companies are perfectly happy to just take your money.
FUNDING
Of course, some projects will still need serious investment, like producing a major movie or building custom cars, and the more money you need, the harder it gets to find someone who’ll share your vision and give you ‘permission’.
Once again, though, the internet is eliminating this bottleneck. Crowdfunding sites like Kickstarter and Indiegogo make it possible for
creators to solicit pledges (a cross between pre-sales and donations) from anyone with a computer and a credit card. As long as there are a few dozen or hundred people in the entire world who like your idea, you can raise thousands of pounds, opening the door to much more niche or original or risky projects; and if your idea is popular, you can raise hundreds of thousands.
I’ve just started a project on Kickstarter myself, to help print a book I’m writing called A History of the Future in 100 Objects (inspired by the excellent Radio 4 show). In just four days, I raised my target of $2500 and donations are still coming in, mostly from people I’ve never met before. I didn’t need anyone’s permission to start that project – I just did it.
Displaying products is stores is no longer crucial
ACCESS TO MARKET
Making your product is only half of the challenge – getting access to the marketplace is just as important. Every aspiring inventor knows how difficult it is to convince retailers to display your product, even if you offer it for practically free. It didn’t matter how good your product was – you still needed permission from a buyer to sell it.
But now, Amazon and Apple have completely upended the system; the internet provides unlimited shelf space, making it possible to stock and display as many products as people want to sell. Why bother holding people up by making them ask for permission?
Some industries have proved more resistant; for example, people still understandably prefer to buy clothes and fashion accessories in person, leaving traditional retailers with outsize power. Yet even then, marketplaces like Etsy that sell handmade items (with over $300 million in sales last year) have proved that change is possible.
TELEVISION
The TV industry is an interesting case, particularly in the UK where a handful of broadcasters like the BBC and ITV not only commission and fund the biggest programmes but also control the means of distribution. As a result, you can’t get anywhere without asking a whole host of commissioners and executives for permission. It’s a lot of power for only a few people to have, especially when they claim to speak for the public.
That’s why YouView, the ‘next-generation Freeview’, is so important to the broadcasters that fund it (BBC, ITV, C4, and Five); they’re absolutely terrified of a future where people turn on their Google or Apple TV and, instead of being welcomed by BBC1, they’re shown video content from YouTube and Netflix that could have been made by anyone, anywhere. Filmmakers won’t need broadcasters’ permission to reach an audience – and broadcasters will have lost control.
YouView is the one thing that will ensure the first five channels on TV will still belong to the old broadcasters, at least for a few more precious years. Unfortunately for them, YouView’s launch has slipped into 2012 (hardly surprising given the terrible track record of British broadcasters’ forays into technology).
The defence of the ‘permission system’ lies in the belief that the best way of allocating limited resources is by getting experts to
figure out what the market wants, having them identify the best ideas, and then doling out money accordingly.
But not only is technology rendering this system superfluous; the plain fact is that the system never worked well in the first place. Publishers and commissioners like to imagine that their skills and experience are the only way to unearth the diamonds in the rough, conveniently ignoring that fact that Harry Potter was rejected by twelve publishing houses before Bloomsbury picked it up, and that the majority of what’s printed and on TV is mediocre.
Let’s face it, no-one can really predict what the market will want. JK Rowling didn’t think “I know what, wizards and boarding schools are fashionable!” before she wrote the fastest selling books in history; Philip Pullman didn’t worry about whether a subtle, complex story about sin and free will would work for children. But what publishers and commissioners can do is echo buzzwords and fund me-too products like reality shows and action blockbusters, which succeed largely thanks to expensive marketing and a lack of alternatives. Thankfully, the success of films like The King’s Speech and Inception shows that audiences are not quite as stupid as we might imagine.
So, if you can’t reliably predict success, what do you do? A recent study of highly successful entrepreneurs by Saras Sarasvathy suggests that making a product and putting it out into the market as soon as possible is the best strategy; when asked about what kind of market research they would conduct for a hypothetical product, one entrepreneur said:
“OK, I need to know which of their various groups of students, trainees, and individuals would be most interested so I can target the audience a little bit more. What other information… I’ve never done consumer marketing, so I don’t really know. I think probably… I think mostly I’d just try to… I would… I wouldn’t do all this, actually. I’d just go sell it. I don’t believe in market research. Somebody once told me the only thing you need is a customer. Instead of asking all the questions, I’d try and make some sales. I’d learn a lot, you know: which people, what were the obstacles, what were the questions, which prices work better. Even before I started production. So my market research would actually be hands-on actual selling.”
That’s real capitalism. What we have right now isn’t capitalism or a free market, it’s an unholy mashup of a (poorly) planned economy and an oligopoly, and it even extends to completely different sectors like academic research, where you often have to abase yourself before trend-driven, risk-averse, time-poor funding committees.
With every extra person who can say ‘no’ to an idea, the more likely it is that mediocrity will prevail. That’s the problem when companies and governments become too large – there are too many people whose job it is to simply say ‘no’. The notable exceptions are publishers like Amazon and Apple, who have learned that it pays to be permissive.
Navigating the obstacle course of everyone who can say ‘no’ has a truly chilling effect on creativity. You start doubting your ideas,
and you enter a tiring game of guessing what the gatekeepers want rather than what you think or hope will be successfully. You stop caring. As a person who designs games and writes for a living, I find it’s hard to overstate exactly how liberating it is to be freed from the permission system.
The brave new ‘permissive world’ isn’t perfect, though. Freedom can be overwhelming, and creatives will be exposed to more competition (such as the 300,000 iPhone apps). But these downsides are more than balanced out by the fact that you can take on more creative risk; and that when the middlemen are taken out of the equation, you waste less time and earn more per sale, making niche ideas more viable. You don’t need a million buyers to be successful – just a thousand true fans can be enough. Your success no longer rests on the whims of a few ‘experts’.
A permissive world will let us pursue projects we truly care about, and that can only mean good things for the power and quality of our work. Once upon a time, any artist who bucked the system and demanded creative control over their work ended up on a one-way trip into penury. No longer.
This isn’t the first time that the permission system has changed. In the 19th century, the Academie des Beaux-Arts in Paris dominated the world of art; to succeed, artists had to toe the line and stick to traditional, approved painting styles. It was only when Monet, Renoir, Pissaro and Sisley scandalously created a new, independent association to exhibit their works directly to the public that Impressionism – and arguably, modern art as a whole – could truly flower.
People, throughout all the ages, have chafed against the need to gain permission to create what they want. When we’re young, we’re amazed and furious at how unfair and arbritrary this is, but as we grow older, we internalise the rules and start censoring our own ideas.
Ultimately, we become part of the permission system. We begin to say ‘no’ to others because that’s what we grew up with, and that’s the way the world works. For many, it’s profoundly frightening to think that one day, they won’t be able to say ‘no’ – what will they do? What will happen to their jobs?
But there is a different way. We can give people freedom, we can save money and time, and we can unlock a wealth of creativity, just by saying one simple word: ‘yes’.
To Learn More Click Here
Thursday, February 10, 2011
Victors & Spoils launches new Corporate Video
From the website Victors&Spoils.com a new corporate video explaining their process...
Victors & Spoils from Victors & Spoils on Vimeo.
Victors & Spoils from Victors & Spoils on Vimeo.
Tuesday, February 8, 2011
Is Crowdfunding Working? Here’s What We Know
By Robert Andrews @robertandrews Feb 8, 2011 10:28 AM ET
Crowdfunding’s growing up.
On one such site, 13,512 people recently raised nearly $1 million for a Chicago designer. And fan-funding sites are now bankrolling albums from established music acts, not just dodgy indie bands.
But just how much are these services making for members, and for themselves?
I’ve spent the last few weeks collecting data on the sector, by talking with all the main crowdfunding platforms…
My conclusion: an estimated $80 million has been pledged through these sites, by fewer than a million supporters. But not everyone gets funded, and returns for the sites themselves appear modest.
Leader of the pack
New York’s Kickstarter is kicking it amongst the head of the pack. Since it started, it’s taken pledges worth $30 million for over 12,000 hopeful projects.
Such sites typically make their money by taking a commission of the amounts they pay projects - but most sites only pay money if projects’ pledges meet a pre-specified target amount.
In the case of Kickstarter, which takes five percent, about 45 percent of submitted projects hit their target - so the amount Kickstarter has made for itself is five percent of something far less than $30 million, and probably of about $8 million.
Growing scale
Still, the overheads required by such sites are low - essentially, web hosting and growing notoriety within creative communities.
Kickstarter is now on a perpetual growth curve - the nearly $1 million its users raised last month for the designer of an iPod Nano wrist-watch strap is one of its biggest hits to date.
It may be the birth of a new kind of funding, a more direct relationship between producer and consumer, without the need for major backers like investors or record labels.
Fixing the system?
In music, which has long been enamoured with the fan-funding model, recognisable names like Cornershop, The Subways, Gang Of Four and Funeral For A Friend are amongst the big acts employing the model through PledgeMusic. Marillion and Idlewild have done it themselves independently. Public Enemy financed its last effort through Sellaband.
It may be no coincidence that, as the incumbent entertainment industry contracts and breaks down, out-of-contract major-label artists are increasingly turning to such platforms...
“We’ve been witnessing first hand the struggles of the independent artist,” says Jamie Lokoff of FeedTheMuse.net, an artist-funding site started out of Lokoff’s Philadelphia recording studio, itself bootstrapped using borrowed cash in May 2009. “The music industry is in such a state of disarray, with no real concrete answer, that we felt it important to at least get our hat in the ring, to be part of the solution.”
After years of engaging with fans through social media and gathering their email addresses, artists are increasingly betting they have a readymade constituency of potential financiers.
Says SonicAngel founder Bart Becks: “Our goal is to launch three artists per quarter per country. We will continue to involve fans in every step.”
New entrants are still coming
Though the market is headed by these popular platforms, that’s not stopping smaller crowdfunding sites from emerging to offer their own spin, nor expanding in to new countries.
One such site, 8bitfunding, launched in January, to fund independent game developers specifically. Ulule, which launched from Paris in October, is already planning a Portugal launch, despite not yet taking any commission.
But newcomers should be warned. The popularity of the likes of Kickstarter and IndieGoGo may suggest room in the space for smaller niche platforms, which may well go on to support many more small creatives - but it’s not yet clear that even crowdfunding’s biggest exponents are yet successful businesses in their own right.
To Learn More Click Here
Crowdfunding’s growing up.
On one such site, 13,512 people recently raised nearly $1 million for a Chicago designer. And fan-funding sites are now bankrolling albums from established music acts, not just dodgy indie bands.
But just how much are these services making for members, and for themselves?
I’ve spent the last few weeks collecting data on the sector, by talking with all the main crowdfunding platforms…
My conclusion: an estimated $80 million has been pledged through these sites, by fewer than a million supporters. But not everyone gets funded, and returns for the sites themselves appear modest.
Leader of the pack
New York’s Kickstarter is kicking it amongst the head of the pack. Since it started, it’s taken pledges worth $30 million for over 12,000 hopeful projects.
Such sites typically make their money by taking a commission of the amounts they pay projects - but most sites only pay money if projects’ pledges meet a pre-specified target amount.
In the case of Kickstarter, which takes five percent, about 45 percent of submitted projects hit their target - so the amount Kickstarter has made for itself is five percent of something far less than $30 million, and probably of about $8 million.
Growing scale
Still, the overheads required by such sites are low - essentially, web hosting and growing notoriety within creative communities.
Kickstarter is now on a perpetual growth curve - the nearly $1 million its users raised last month for the designer of an iPod Nano wrist-watch strap is one of its biggest hits to date.
It may be the birth of a new kind of funding, a more direct relationship between producer and consumer, without the need for major backers like investors or record labels.
Fixing the system?
In music, which has long been enamoured with the fan-funding model, recognisable names like Cornershop, The Subways, Gang Of Four and Funeral For A Friend are amongst the big acts employing the model through PledgeMusic. Marillion and Idlewild have done it themselves independently. Public Enemy financed its last effort through Sellaband.
It may be no coincidence that, as the incumbent entertainment industry contracts and breaks down, out-of-contract major-label artists are increasingly turning to such platforms...
“We’ve been witnessing first hand the struggles of the independent artist,” says Jamie Lokoff of FeedTheMuse.net, an artist-funding site started out of Lokoff’s Philadelphia recording studio, itself bootstrapped using borrowed cash in May 2009. “The music industry is in such a state of disarray, with no real concrete answer, that we felt it important to at least get our hat in the ring, to be part of the solution.”
After years of engaging with fans through social media and gathering their email addresses, artists are increasingly betting they have a readymade constituency of potential financiers.
Says SonicAngel founder Bart Becks: “Our goal is to launch three artists per quarter per country. We will continue to involve fans in every step.”
New entrants are still coming
Though the market is headed by these popular platforms, that’s not stopping smaller crowdfunding sites from emerging to offer their own spin, nor expanding in to new countries.
One such site, 8bitfunding, launched in January, to fund independent game developers specifically. Ulule, which launched from Paris in October, is already planning a Portugal launch, despite not yet taking any commission.
But newcomers should be warned. The popularity of the likes of Kickstarter and IndieGoGo may suggest room in the space for smaller niche platforms, which may well go on to support many more small creatives - but it’s not yet clear that even crowdfunding’s biggest exponents are yet successful businesses in their own right.
To Learn More Click Here
Monday, February 7, 2011
Three Ways To Crowd fund Big Ideas With Lean Pockets
Erica Nicole, YFS Magazine | Feb. 4, 2011, 4:44 PM
The cost of doing business isn’t cheap. One of the primary challenges for entrepreneurs is the effective management of cash flow.
Small businesses generally lack the asset requirements necessary to qualify for bank loans. It is no surprise that small business lending isn’t what it used to be.
Big Ideas and Lean Pockets
Small businesses fail every year due to the mismanagement and lack of cash flow. While every entrepreneur has heard the adage that “Cash is King,” obtaining a quick injection of cash can be a daunting task. So, when I started my first company, I asked, “How can I master my funding without its mastering me?” Peer-to-peer lending, better known as crowdfunding, was a, seemingly, good answer. Alongside bootstrapping, crowdfunding is the perfect resource for fledgling entrepreneurs with big ideas and lean pockets.
Reward your Biggest Fans
The crowd is every entrepreneur’s biggest fan. People want to be a part of something bigger than themselves, and if you add profit or rewards to the mix, then you’re onto something. Crowdfunding enables your peers to minimize their risk and invest in business ventures they believe in. Gone are the days of pitching hundreds of venture capitalists or hoping that your local banker loves your widget idea as much as you do. One of the main reasons crowdfunding has become increasingly popular is that unlike working with traditional investors, you keep 100% ownership of your idea. Crowdfunding websites represent an excellent source of capital and offer a great platform to test market ideas and gauge consumer interest.
Focus and Fund
So, you’ve got a great project and need to fund it. What’s next? Create an account at one or more of the following crowdfunding websites. The catch is, make sure you are definitive about your project parameters. Projects such as “I am launching a clothing line,” won’t fly. The more precise the project, the better. Also, make conservative funding estimates (e.g. Do your homework). Projects that don’t reach full funding don’t get funded. Ultimately, your goal is to drive accountability with a definite start and end. While each crowdfunding platform varies in terms of allowable projects and pitches, they all represent a great starting point to help you focus your idea and fund your dream. Here are 3 websites that will get you on your way:
Profounder.com: Get started by following their step-by-step process to outline your pitch. Now it’s time to get creative and develop your investment terms. Profounder then creates the legally compliant documents and an individual website for your venture. Now, you can share your idea with the world; seek pledges and meet your fundraising goal.
Kickstarter.com: While causes and charities are not welcomed, creative and genius project ideas are. Post your project, set your deadline and capitalize on your network. If you’re looking for a hybrid of e-commerce and patronage support where you won’t have to pay back funds – ever, then Kickstarter.com is the best place to kick-start your project into gear.
Rockethub.com: Come up with a fantastic idea and sign-up for an account at RocketHub.com. Post your new project by following their 5-step process. Offer tangible rewards and kickbacks instead of monetary incentives and fuel your project within a predetermined time limit. Share it with friends, family and associates and spread the good news.
To Learn More Click Here
The cost of doing business isn’t cheap. One of the primary challenges for entrepreneurs is the effective management of cash flow.
Small businesses generally lack the asset requirements necessary to qualify for bank loans. It is no surprise that small business lending isn’t what it used to be.
Big Ideas and Lean Pockets
Small businesses fail every year due to the mismanagement and lack of cash flow. While every entrepreneur has heard the adage that “Cash is King,” obtaining a quick injection of cash can be a daunting task. So, when I started my first company, I asked, “How can I master my funding without its mastering me?” Peer-to-peer lending, better known as crowdfunding, was a, seemingly, good answer. Alongside bootstrapping, crowdfunding is the perfect resource for fledgling entrepreneurs with big ideas and lean pockets.
Reward your Biggest Fans
The crowd is every entrepreneur’s biggest fan. People want to be a part of something bigger than themselves, and if you add profit or rewards to the mix, then you’re onto something. Crowdfunding enables your peers to minimize their risk and invest in business ventures they believe in. Gone are the days of pitching hundreds of venture capitalists or hoping that your local banker loves your widget idea as much as you do. One of the main reasons crowdfunding has become increasingly popular is that unlike working with traditional investors, you keep 100% ownership of your idea. Crowdfunding websites represent an excellent source of capital and offer a great platform to test market ideas and gauge consumer interest.
Focus and Fund
So, you’ve got a great project and need to fund it. What’s next? Create an account at one or more of the following crowdfunding websites. The catch is, make sure you are definitive about your project parameters. Projects such as “I am launching a clothing line,” won’t fly. The more precise the project, the better. Also, make conservative funding estimates (e.g. Do your homework). Projects that don’t reach full funding don’t get funded. Ultimately, your goal is to drive accountability with a definite start and end. While each crowdfunding platform varies in terms of allowable projects and pitches, they all represent a great starting point to help you focus your idea and fund your dream. Here are 3 websites that will get you on your way:
Profounder.com: Get started by following their step-by-step process to outline your pitch. Now it’s time to get creative and develop your investment terms. Profounder then creates the legally compliant documents and an individual website for your venture. Now, you can share your idea with the world; seek pledges and meet your fundraising goal.
Kickstarter.com: While causes and charities are not welcomed, creative and genius project ideas are. Post your project, set your deadline and capitalize on your network. If you’re looking for a hybrid of e-commerce and patronage support where you won’t have to pay back funds – ever, then Kickstarter.com is the best place to kick-start your project into gear.
Rockethub.com: Come up with a fantastic idea and sign-up for an account at RocketHub.com. Post your new project by following their 5-step process. Offer tangible rewards and kickbacks instead of monetary incentives and fuel your project within a predetermined time limit. Share it with friends, family and associates and spread the good news.
To Learn More Click Here
Thursday, January 27, 2011
Zuckerberg's Facebook Page Hacked
Perhaps it is not that Zuckerberg's page was hacked, but what the hacker wrote...
(CNN) -- Facebook founder Mark Zuckerberg's fan page was hacked Tuesday -- a high-profile breach on a site that constantly faces scrutiny about its handling of its members' private data.
So the hacker was complaining that, why has Facebook not crowd funded its members especially when they have 600,000,000 of them. Why indeed?
(CNN) -- Facebook founder Mark Zuckerberg's fan page was hacked Tuesday -- a high-profile breach on a site that constantly faces scrutiny about its handling of its members' private data.
The message that appeared on Zuckerberg's page under his name read: "Let the hacking begin: If Facebook needs money, instead of going to the banks, why doesn't Facebook let its users invest in Facebook in a social way? "Why not transform Facebook into a 'social business' the way Nobel Prize winner Muhammad Yunus described it?" the message continued, referring to the founder of the Grameen Bank which has transformed millions of lives by extending micro-loans to poor people.
Zuckerberg's fan page has more than three million followers and is probably managed by media assistants to the social networking magnate, according to cyber-security experts.
The message received more than 1,800 "likes" before it was removed from the page. Facebook's representatives have not returned calls seeking comment.Zuckerberg's fan page has more than three million followers and is probably managed by media assistants to the social networking magnate, according to cyber-security experts.
So the hacker was complaining that, why has Facebook not crowd funded its members especially when they have 600,000,000 of them. Why indeed?
Tuesday, January 25, 2011
Qwiki.com launches with input from the crowd.
Is this the new Hal?
Qwiki is out of private testing and now available to the public. Haven't heard of them? Well, then, you haven't been reading TechCrunch lately. Qwiki is the winner of the most recent TechCrunch Disrupt contest and is using video in some pretty interesting ways. Now that the service is public, I thought I'd take it for a spin and let you know what's going on.
Qwiki isn't the easiest service to explain, as evidenced by their own "About Us" description:
Qwiki is out of private testing and now available to the public. Haven't heard of them? Well, then, you haven't been reading TechCrunch lately. Qwiki is the winner of the most recent TechCrunch Disrupt contest and is using video in some pretty interesting ways. Now that the service is public, I thought I'd take it for a spin and let you know what's going on.
Qwiki isn't the easiest service to explain, as evidenced by their own "About Us" description:
How to 'Crowdfund' Your American Dream
By STEVE STRAUSS
Politicians do it, and now more and more people are finding money to start their businesses thanks to small contributions from supporters.
Back in 1992, former and current California Gov. Jerry Brown ran for president against, among others, Bill Clinton. As Clinton emerged as the favorite, endorsements -- and more importantly, money -- started to flow his way. And as a result, the other candidates in the field began to drop out as votes and money dried up.
But not Jerry Brown. Brown had hit upon a then-unique fundraising idea in a pre-Internet day that kept his quixotic campaign alive: He created an 800 telephone number and asked people to call in and donate small sums to his campaign. No more than $100. It turned out that his supporters were more than happy to help him if it didn't cost a lot and was easy to do.
He didn't win, but Jerry Brown was one of the first to 'crowdfund' his campaign.
A more recent example from the business world: Filmmaker Kieran Masterton used crowdfunding to fund his startup, raising more than $12,000 in the process. And maybe even better, like Jerry Brown, Masterton did not have to pay people back with cash, since people who donate to crowdfunding projects expect to be repaid in ways other than money.
Pretty nifty, eh?
Crowdfunding is a process whereby people with projects or business ideas ask the crowd to donate to the cause in exchange for some sort of reward. Typically the reward has something to do with the businesses or project. In Masterson's case, he was starting a website that would distribute the work of independent filmmakers, so he asked them for $100 each – in exchange for getting listed on the website. It worked, big time.
Another example: SellaBand.com is a crowdfunding platform which offers bands something it calls "fan funding." Let's say an indie band has a new tour or album it wants to produce and needs funding for the project. The band would list it on the Sellaband website, and in exchange for donations, would "repay" participants with "free downloads... exclusive CDs, T-shirts, free lunches etc."
Not surprisingly, crowdfunding -- an idea that began as a way for various artists to fund their projects, has morphed into a tool for entrepreneurs to fund their own dreams. As Time puts it, "Politicians do it. Charities too. And now for-profit entrepreneurs are tapping the Internet to get small amounts of money from lots and lots of supporters. One part social networking and one part capital accumulation, crowdfunding websites seek to harness the enthusiasm -- and pocket money --o f virtual strangers."
If this makes sense to you and looks like a way for you to get some funding for your own project, here are some sites you will want to check out:
Kickstarter.com. Listing a project on Kickstarter is free, although KickStarter keeps 5 percent of all money raised, as well as a small portion of all credit-card processing fees.
One interesting thing about Kickstarter is that projects must raise 100 percent of their funding goal, or they receive nothing. Here's why that's a good thing: Let's say that you are trying to raise $10,000 to self-publish a book and that you offer credits in the book in exchange for investments at $50 a pop. If you only raise $5,000, it would not be a very good deal for all of those people who gave you $50, since the book would never get published. So it's 100 percent or nothing at Kickstarter.
IndieGoGo. Similar to Kickstarter, IndieGoGo is a "collaborative way to fund ideas." The difference is that it does not does not require 100 percent funding, although if you do not raise the full amount, they charge you 9 percent as opposed to 4 percent.
Here is one last nice benefit about using crowdfunding to fund your dream: Because it gets people interested in your venture early on, those folks become (literally) invested in your success and thus become your cheerleaders.
Starting a business with a built-in audience and getting funding without having to repay it in cash? Sweet.
To Learn More Click Here
Politicians do it, and now more and more people are finding money to start their businesses thanks to small contributions from supporters.
Back in 1992, former and current California Gov. Jerry Brown ran for president against, among others, Bill Clinton. As Clinton emerged as the favorite, endorsements -- and more importantly, money -- started to flow his way. And as a result, the other candidates in the field began to drop out as votes and money dried up.
But not Jerry Brown. Brown had hit upon a then-unique fundraising idea in a pre-Internet day that kept his quixotic campaign alive: He created an 800 telephone number and asked people to call in and donate small sums to his campaign. No more than $100. It turned out that his supporters were more than happy to help him if it didn't cost a lot and was easy to do.
He didn't win, but Jerry Brown was one of the first to 'crowdfund' his campaign.
A more recent example from the business world: Filmmaker Kieran Masterton used crowdfunding to fund his startup, raising more than $12,000 in the process. And maybe even better, like Jerry Brown, Masterton did not have to pay people back with cash, since people who donate to crowdfunding projects expect to be repaid in ways other than money.
Pretty nifty, eh?
Crowdfunding is a process whereby people with projects or business ideas ask the crowd to donate to the cause in exchange for some sort of reward. Typically the reward has something to do with the businesses or project. In Masterson's case, he was starting a website that would distribute the work of independent filmmakers, so he asked them for $100 each – in exchange for getting listed on the website. It worked, big time.
Another example: SellaBand.com is a crowdfunding platform which offers bands something it calls "fan funding." Let's say an indie band has a new tour or album it wants to produce and needs funding for the project. The band would list it on the Sellaband website, and in exchange for donations, would "repay" participants with "free downloads... exclusive CDs, T-shirts, free lunches etc."
Not surprisingly, crowdfunding -- an idea that began as a way for various artists to fund their projects, has morphed into a tool for entrepreneurs to fund their own dreams. As Time puts it, "Politicians do it. Charities too. And now for-profit entrepreneurs are tapping the Internet to get small amounts of money from lots and lots of supporters. One part social networking and one part capital accumulation, crowdfunding websites seek to harness the enthusiasm -- and pocket money --o f virtual strangers."
If this makes sense to you and looks like a way for you to get some funding for your own project, here are some sites you will want to check out:
Kickstarter.com. Listing a project on Kickstarter is free, although KickStarter keeps 5 percent of all money raised, as well as a small portion of all credit-card processing fees.
One interesting thing about Kickstarter is that projects must raise 100 percent of their funding goal, or they receive nothing. Here's why that's a good thing: Let's say that you are trying to raise $10,000 to self-publish a book and that you offer credits in the book in exchange for investments at $50 a pop. If you only raise $5,000, it would not be a very good deal for all of those people who gave you $50, since the book would never get published. So it's 100 percent or nothing at Kickstarter.
IndieGoGo. Similar to Kickstarter, IndieGoGo is a "collaborative way to fund ideas." The difference is that it does not does not require 100 percent funding, although if you do not raise the full amount, they charge you 9 percent as opposed to 4 percent.
Here is one last nice benefit about using crowdfunding to fund your dream: Because it gets people interested in your venture early on, those folks become (literally) invested in your success and thus become your cheerleaders.
Starting a business with a built-in audience and getting funding without having to repay it in cash? Sweet.
To Learn More Click Here
Friday, January 14, 2011
Groupon Now Valued at 15 Billion Dollars
By BRETT LIPTON Times Square Chronicles
Internet coupon new comer Groupon, is now slated to be worth $15,000,000,000, that is BILLION with a 'B'.
Rumors have been buzzing about Groupon recently, reporting that the online Coupon Deal Venue, headed by CEO Andrew Mason, may be planning to go public with an IPO in as early as Spring of 2011. If you are not familiar with Groupon.com, the new internet giant uses the following business model:
Vendor contacts Groupon with a deal, good for 1 day.
Vendor applies a minimum number of people that need to take the deal for everyone to be able to cash in on it ergo "Group"
Vendor makes a discount offer offer i.e. 20% off a purchase, $50.00 discount..., ergo "Coupon"
Result = GROUPON
If the minimum takers is reached: Deal On - for everyone!
If the minimum takers is not reached: Deal Off - for everyone!
Groupon was started a scant 3 years ago in 2008 and currently the Chicago based company houses approximately 120 employees. In this short time they have achieved an audience of approximately 15 million daily viewers to the site. According to internet website rankings by Quantcast, they are the 198th most trafficked site in the US. Amazon's Alexa ranks them at 87 in the US and 401st in the world. Interestingly, it is alleged that only a few months ago internet search and advertising giant Google offered them $6 billion only a couple of months ago, effectively almost tripling the value of Groupon in less than a year.
According to Groupon they just hit a online coupon milestone, saving their users over $1 Billion in shopping sprees. The site popularity and investment lure can be made quite apparent by summing it up this way: In August 2011 a single Groupon Gap deal offered its users $50.00 worth of shopping for $25.00 generated 445,000 takers and landed the company $11,000,000 in one take. The demand was so high that the deal was being taken at a rate of 534 per minute. As a result Groupon.com's servers suffered and the site experienced technical issues from the bandwidth draw.
Here’s Groupon CEO Andrew Mason, the “quirky personality” behind Groupon's group couponing, in an interview for Crain’s “40 Under 40: 2009.”
To Learn More Click Here
Saturday, January 1, 2011
Five Financing Trends for 2011
By Eileen P. Gunn at Entrepreneur.com
Mon Dec 27, 2010 7:04pm EST
When it comes to funding options for startups, new ideas seem to come along every season. Some may be old ideas dressed up in a new way, while a few may be something we really haven't seen before. It isn't certain which ones will become the new black of small business and which will disappear with this year’s hemlines. But here are five financing trends for 2011 that could have an impact on your company.
1. Crowdfunding
Kickstarter popularized the idea of crowdfunding, which is when a large group of people help fund a project or business through a cluster of small donations. Kickstarter began as a new way to help artists get projects off the ground. In return for funding, donors receive goods or services, or even just a well-crafted thank-you, in lieu of equity or interest payments. Now the same idea is spreading to business ventures. Diaspora, a tech company that wants to build a social network to rival Facebook got more than $200,000 in seed money from a Kickstarter campaign
Of course, the Securities and Exchange Commission frowns on companies offering equity to the public without filing with the government to do so, so when it comes to crowdfunding backers always get something other than equity. Take Catwalk Genius. Its members fund fledgling fashion designers and in return get a share of the revenue generated by the designer’s clothing lines. Then, there's Indiegogo, which leans toward creative and tech business ventures, and peerbackers.com, a community of people specifically looking to support entrepreneurs, which are similar to Kickstarter in that they encourage preselling products as a way to raise funds. Look for more niche-oriented crowdfunding sites in 2011.
2. Microlending
The idea of offering very small loans, even just $100, has its roots in helping women in underdeveloped countries start small business ventures. But as the recession tightened credit offerings, the popularity of microlending has extended to the U.S. -- especially as aspiring entrepreneurs are starting ventures with far less than the $50,000 business loan threshold common at many banks. Not-for-profit Accion is the largest organization putting that idea into action with loans that start at $500 and average a little more than $5,000. You can also research other microlending programs around the U.S. through the Association for Enterprise Opportunity's searchable database.
3. Credit Unions
These cooperative financial institutions are among the most active in making smaller loans to entrepreneurs and have only gotten busier in recent years, according to the National Credit Union Administration (NCUA). Its figures show credit unions made more than $33 billion worth of business loans in 2009, up from $12 billion in 2004. They have relatively low default rates and terms that are often better than traditional banks, according to the NCUA and Federal Deposit Insurance Corp. (FDIC). Credit unions also can be a resource for aspiring business owners whose credit score might not pass muster with other banks. The catch? You will likely have to become a member of the credit union to borrow from it.
4. Bootstrapping
If you’ve trimmed your start-up costs down to a few hundred or a couple thousand dollars, why not skip the loan altogether and bootstrap your business? When you tap personal savings, get vendors to front start-up supplies for delayed payment terms, hit up friends and relatives, or use one money-making venture to fund another, then you’re bootstrapping. It’s a good way to test an idea and make sure it has legs before investing heavily in a new venture. Think of it as the business equivalent of going retro. It’s an idea that has been around forever, but is making a big comeback as people who have lost their jobs in the recession increasingly look to start a small business as an alternative to traditional employment.
5. The Slow Money Movement
Woody Tasch, longtime chairman of Investors' Circle, a hugely successful angel network for socially responsible companies, is spearheading this fledgling movement. Its ambitious aim is “a million Americans investing 1% of their assets in local food systems within a decade."
The idea is to help entrepreneurs who buy, use and sell local food or who engage in sustainable agriculture get seed funding from people they know in their communities. The terms are set on a deal-by-deal basis, which can range from a loan to equity to a credit extension. Backers are encouraged to invest in ventures that won’t just turn quick profits but will benefit their communities over the long term by creating jobs, supporting other local businesses and the fostering local food chain.
It’s ambitious and will likely evolve as it goes. But in its early days so was Investors' Circle, which has facilitated over $134 million in investments in more than 200 companies since 1992. We’re interested to see how Tasch will sustain this movement.
To Learn More Click Here
Mon Dec 27, 2010 7:04pm EST
When it comes to funding options for startups, new ideas seem to come along every season. Some may be old ideas dressed up in a new way, while a few may be something we really haven't seen before. It isn't certain which ones will become the new black of small business and which will disappear with this year’s hemlines. But here are five financing trends for 2011 that could have an impact on your company.
1. Crowdfunding
Kickstarter popularized the idea of crowdfunding, which is when a large group of people help fund a project or business through a cluster of small donations. Kickstarter began as a new way to help artists get projects off the ground. In return for funding, donors receive goods or services, or even just a well-crafted thank-you, in lieu of equity or interest payments. Now the same idea is spreading to business ventures. Diaspora, a tech company that wants to build a social network to rival Facebook got more than $200,000 in seed money from a Kickstarter campaign
Of course, the Securities and Exchange Commission frowns on companies offering equity to the public without filing with the government to do so, so when it comes to crowdfunding backers always get something other than equity. Take Catwalk Genius. Its members fund fledgling fashion designers and in return get a share of the revenue generated by the designer’s clothing lines. Then, there's Indiegogo, which leans toward creative and tech business ventures, and peerbackers.com, a community of people specifically looking to support entrepreneurs, which are similar to Kickstarter in that they encourage preselling products as a way to raise funds. Look for more niche-oriented crowdfunding sites in 2011.
2. Microlending
The idea of offering very small loans, even just $100, has its roots in helping women in underdeveloped countries start small business ventures. But as the recession tightened credit offerings, the popularity of microlending has extended to the U.S. -- especially as aspiring entrepreneurs are starting ventures with far less than the $50,000 business loan threshold common at many banks. Not-for-profit Accion is the largest organization putting that idea into action with loans that start at $500 and average a little more than $5,000. You can also research other microlending programs around the U.S. through the Association for Enterprise Opportunity's searchable database.
3. Credit Unions
These cooperative financial institutions are among the most active in making smaller loans to entrepreneurs and have only gotten busier in recent years, according to the National Credit Union Administration (NCUA). Its figures show credit unions made more than $33 billion worth of business loans in 2009, up from $12 billion in 2004. They have relatively low default rates and terms that are often better than traditional banks, according to the NCUA and Federal Deposit Insurance Corp. (FDIC). Credit unions also can be a resource for aspiring business owners whose credit score might not pass muster with other banks. The catch? You will likely have to become a member of the credit union to borrow from it.
4. Bootstrapping
If you’ve trimmed your start-up costs down to a few hundred or a couple thousand dollars, why not skip the loan altogether and bootstrap your business? When you tap personal savings, get vendors to front start-up supplies for delayed payment terms, hit up friends and relatives, or use one money-making venture to fund another, then you’re bootstrapping. It’s a good way to test an idea and make sure it has legs before investing heavily in a new venture. Think of it as the business equivalent of going retro. It’s an idea that has been around forever, but is making a big comeback as people who have lost their jobs in the recession increasingly look to start a small business as an alternative to traditional employment.
5. The Slow Money Movement
Woody Tasch, longtime chairman of Investors' Circle, a hugely successful angel network for socially responsible companies, is spearheading this fledgling movement. Its ambitious aim is “a million Americans investing 1% of their assets in local food systems within a decade."
The idea is to help entrepreneurs who buy, use and sell local food or who engage in sustainable agriculture get seed funding from people they know in their communities. The terms are set on a deal-by-deal basis, which can range from a loan to equity to a credit extension. Backers are encouraged to invest in ventures that won’t just turn quick profits but will benefit their communities over the long term by creating jobs, supporting other local businesses and the fostering local food chain.
It’s ambitious and will likely evolve as it goes. But in its early days so was Investors' Circle, which has facilitated over $134 million in investments in more than 200 companies since 1992. We’re interested to see how Tasch will sustain this movement.
To Learn More Click Here
Friday, December 31, 2010
Poptent Hits $1 Million in Video Ad Payouts
by Mark Walsh, Monday, December 20, 2010, 7:00 AM
The buzz around harnessing user-generated video to boost brands may have peaked a few years ago, but startup Poptent has managed to find a profitable niche as a platform for crowdsourcing video ads.
Started in 2007, the company matches its social network of 20,000 independent videographers and filmmakers with assignments for mostly online video (but also TV) spots from major brands including Anheuser-Busch, Nokia and American Express. Think LinkedIn for freelance video producers complete with member profiles, work samples and a discussion board.
Each assignment is in effect a contest where brands select two or three commercials from the roughly 35 to 100 submissions each project attracts. Advertisers typically pay $7,500 per winning ad, although that figure is lately starting to climb to $10,000 as marketers compete to draw the most talented videographers, according to Poptent President Neil Perry, a former senior marketing executive at McDonald's Corporation and Monster.com.
The Philadephia-based company today announced crossing the $1 million mark in cash payments for contributors' completed assignments, with $10,000 awarded to New York City-based video maker Sean Cunningham for one of four winning ads for GE's user-generated "Tag Your Green" effort as part of its ecomagination campaign. Poptent.net usually has eight to 10 active assignments posted at any time.
A current project from Frito-Lay, for example, asks members to create videos inspired by its tagline, "We Make it Natural. You Make it Fun." "Since our traditional media will focus on the 'We Make it Natural' piece, we would like for the focus of this Poptent ad to lean more heavily on the 'You Make it Fun' portion of this tagline knowing that natural is another reason to believe that mom can have fun," reads the creative brief.
Frito-Lay is paying $10,000 apiece for three ads, and possibly more based on the quality of submissions. Poptent gets about 25% to 30% repeat business from advertisers, according to Perry, with Anheuser-Busch and Procter & Gamble each sending seven campaigns to the site so far. FedEx ended up buying nine ads this year at $5,000 after starting with just three for its "Think FedEx First" campaign aimed at small businesses.
The spots are clever, quirky and professional-looking, if not the product of lavish production values (although one circus-themed spot does feature a live elephant).
Unlike its video contributors, Poptent itself doesn't work on spec. It gets paid $25,000 up front for each assignment to help manage the process and screen submissions for any inappropriate or copyright-infringing material. Even with the video freelancer's fee added in, the cost is still considerably less than paying six figures or more for creation of a tradtional 30-second spot.
But Poptent isn't always leaving agencies out of the loop -- about 20% of its work comes from agencies rather than directly from brands. Chicago-based marketing firm Robinson Maites, for example, which works with FedEx, handled the ad buys via Poptent for the shipping giant. And Poptent worked with OMD on campaign strategy related to the GE "Tag Your Green" assignment. Boutique creative shops may also be among those submitting prospective ads.
Poptent's steady growth and profitability haven't been lost on investors. In October, the company received $3 million in first-round funding from MK Capital. That financing will help the company expand its 25-persoff staff, including sales and marketing employees, as well as grow beyond the U.S. market through its network of video makers in 80 countries.
Poptent is not alone in pursuing the "crowdsourced creativity" model, however, with other startups such as GeniusRocket and Tongal also vying for talented contributors and brand and investor dollars. GeniusRocket, for instance, touts a "curated crowsourcing" approach in which any member that produces for content for a project gets compensated whether the client buys their work or not.
Perhaps most crucial for Poptent's success so far is that advertiser expectations haven't been set too high. If a video spot goes viral, that's gravy -- but it's not something brands are counting on due to the fickle nature of the Web video audience, according to Perry. As many brands have found to their dismay, manufacturing a viral video hit is a dicey proposition no matter how big the production budget.
To Learn More Click Here
The buzz around harnessing user-generated video to boost brands may have peaked a few years ago, but startup Poptent has managed to find a profitable niche as a platform for crowdsourcing video ads.
Started in 2007, the company matches its social network of 20,000 independent videographers and filmmakers with assignments for mostly online video (but also TV) spots from major brands including Anheuser-Busch, Nokia and American Express. Think LinkedIn for freelance video producers complete with member profiles, work samples and a discussion board.
Each assignment is in effect a contest where brands select two or three commercials from the roughly 35 to 100 submissions each project attracts. Advertisers typically pay $7,500 per winning ad, although that figure is lately starting to climb to $10,000 as marketers compete to draw the most talented videographers, according to Poptent President Neil Perry, a former senior marketing executive at McDonald's Corporation and Monster.com.
The Philadephia-based company today announced crossing the $1 million mark in cash payments for contributors' completed assignments, with $10,000 awarded to New York City-based video maker Sean Cunningham for one of four winning ads for GE's user-generated "Tag Your Green" effort as part of its ecomagination campaign. Poptent.net usually has eight to 10 active assignments posted at any time.
A current project from Frito-Lay, for example, asks members to create videos inspired by its tagline, "We Make it Natural. You Make it Fun." "Since our traditional media will focus on the 'We Make it Natural' piece, we would like for the focus of this Poptent ad to lean more heavily on the 'You Make it Fun' portion of this tagline knowing that natural is another reason to believe that mom can have fun," reads the creative brief.
Frito-Lay is paying $10,000 apiece for three ads, and possibly more based on the quality of submissions. Poptent gets about 25% to 30% repeat business from advertisers, according to Perry, with Anheuser-Busch and Procter & Gamble each sending seven campaigns to the site so far. FedEx ended up buying nine ads this year at $5,000 after starting with just three for its "Think FedEx First" campaign aimed at small businesses.
The spots are clever, quirky and professional-looking, if not the product of lavish production values (although one circus-themed spot does feature a live elephant).
Unlike its video contributors, Poptent itself doesn't work on spec. It gets paid $25,000 up front for each assignment to help manage the process and screen submissions for any inappropriate or copyright-infringing material. Even with the video freelancer's fee added in, the cost is still considerably less than paying six figures or more for creation of a tradtional 30-second spot.
But Poptent isn't always leaving agencies out of the loop -- about 20% of its work comes from agencies rather than directly from brands. Chicago-based marketing firm Robinson Maites, for example, which works with FedEx, handled the ad buys via Poptent for the shipping giant. And Poptent worked with OMD on campaign strategy related to the GE "Tag Your Green" assignment. Boutique creative shops may also be among those submitting prospective ads.
Poptent's steady growth and profitability haven't been lost on investors. In October, the company received $3 million in first-round funding from MK Capital. That financing will help the company expand its 25-persoff staff, including sales and marketing employees, as well as grow beyond the U.S. market through its network of video makers in 80 countries.
Poptent is not alone in pursuing the "crowdsourced creativity" model, however, with other startups such as GeniusRocket and Tongal also vying for talented contributors and brand and investor dollars. GeniusRocket, for instance, touts a "curated crowsourcing" approach in which any member that produces for content for a project gets compensated whether the client buys their work or not.
Perhaps most crucial for Poptent's success so far is that advertiser expectations haven't been set too high. If a video spot goes viral, that's gravy -- but it's not something brands are counting on due to the fickle nature of the Web video audience, according to Perry. As many brands have found to their dismay, manufacturing a viral video hit is a dicey proposition no matter how big the production budget.
To Learn More Click Here
Sunday, December 19, 2010
Facebook for farmers and Wokai which means I start
Meanwhile, in two other Chinese counties, a social networking site is linking donors as far afield as London and California with farmers who seek micro-finance to develop small rural businesses.
Enter the web platform, Wokai, which means "I start".
It has profiles of borrowers from Sichuan and Inner Mongolia, and profiles of contributors from 47 countries who select online which projects they want to support. In many ways, it is a Facebook for farmers.
"You have the second largest micro-credit demand in the world and almost no supply of micro-credit," says Casey Wilson, CEO and co-founder of Wokai.
"And the reason for that is that the practitioners that are doing micro-finance on the ground don't have access to capital. And so given that context, the internet is one of the only ways that you can mobilise a global community to reverse that cycle and to get micro-finance in China on the map."
In two years, Wokai has raised over $370,000 and financed 500 projects - from small pig farms to roadside noodle stands.
Registered micro-finance partners administer the loans locally - and earn from the interest. Wokai doesn't take a penny from the money pledged, relying instead on donations and sponsorship to cover its running costs.
Saturday, December 18, 2010
Crowdfunding: Business startups use tactic as alternative to investors
By: Marino Eccher, INFORUM
For three years, Minneapolis-based comic publisher Raighne Hogan paid to produce his company’s annual anthology of comics by local artists – the Good Minnesotan – out of his own pocket. That was getting pricey. So when it came time this year to put out the Good Minnesotan 4, Hogan tried a different tactic: passing around a digital collection plate to seek support from the public.
What is crowdfunding?
Crowdfunding is the latest trend for artists, startups and small businesses: raising money from the public via online pledge drives, a few dollars at a time. A handful of regional projects have used the tactic to jump-start their efforts, and one Fargo company is banking on it to launch a brewery.
For three years, Minneapolis-based comic publisher Raighne Hogan paid to produce his company’s annual anthology of comics by local artists – the Good Minnesotan – out of his own pocket.
That was getting pricey. So when it came time this year to put out the Good Minnesotan 4, Hogan tried a different tactic: passing around a digital collection plate to seek support from the public. It’s a tactic known as crowdfunding, and it has taken root among a handful of regional business projects in recent years.
Those range from small artistic ventures like Hogan’s, which sought and raised $1,000 over the summer from online backers, to ambitious business ideas like the Fargo Brewing Company, which will seek $55,000 in early 2011 to start what would be the state’s only homegrown brewery. They dangle perks, swag and goodwill to coax contributions out of friends, family and strangers in amounts ranging from $1 to $10,000-plus.
Crowdfunded projects are powered by websites that feature a wide range of projects for public consideration. Hogan used New York-based Kickstarter, which features a handful of other Minnesota projects, while the Fargo Brewing Company is using Los Angeles-based ProFounder.
The specifics vary from site to site, but the basic model stays the same: Users post a project with a funding goal and a time limit, typically a month, and solicit pledges from backers with a short pitch. Many Kickstarter projects also include videos. If the goal is met on time, the pledges are locked in and the site takes a few percentage points of the money raised as a fee. If not, no money changes hands.
To call such sites investment vehicles would be a misnomer: Backers don’t own a piece of the projects they support or turn a profit (indeed, any such arrangements would entangle the sites in considerable regulatory oversight). Support a successful ProFounder project, and you’ll do no better than break even; support a Kickstarter project, and you won’t get your money back at all.
To bring in backers without the prospect of financial gain, crowdfunding projects usually turn to creative incentives. A $500 Kickstarter donation to a Minnesota Fringe Festival play might get you dinner with the actors. A $100 investment in the Fargo Brewing Company will get you a company T-shirt; $1,000 will get you on the guest list of exclusive company events, including tastings.
Dana Mauriello, president and co-founder of ProFounder, said getting that kind of reward for investing in a company “is almost like being a member of a cool club.”
In ProFounder’s case, there’s also a philanthropic incentive to give. Backers are repaid with a percentage of the company’s revenue over a set number of years. Once they recoup their investment, any revenue that would have gone toward repaying them goes instead to a nonprofit of the company’s choosing for the duration of the agreement.
“You believe in the person, you believe in the business, you believe in the business mission, you just want to see this business exist in the world,” Mauriello said.
But getting a crowdfunded project to catch on amid a sea of other offerings isn’t easy. ProFounder, which launched in December, has dozens of projects, while Kickstarter has hundreds. Hogan said standing out on Kickstarter meant working aggressively to start his project. He started a blog and “bothered friends and family” throughout the process.
“A lot of it was just trying to create some noise on the Web,” he said.
It doesn’t always work. Rip Smith, a West Virginia-based photographer, tried to raise $3,500 via Kickstarter this summer for a photography project to document abandoned places in rural North Dakota. He secured just $432 in pledges.
Smith said he thinks his fundraising goal was too ambitious. He also said he never seemed to garner much momentum on Kickstarter – he was never highlighted on the home page or chosen as the featured project of the week.
“If I had to guess, success in that medium requires either someone who already has a large constituency to whom to appeal, or the project needs to capture people’s imagination in some way,” he said. Smith said he did the North Dakota project anyway, and might try crowdfunding again for future projects.
Jared Hardy, one of the partners in the Fargo Brewing Company, said the importance of building an engaged audience is one of the reasons the company decided to launch next year rather than this month. He said the brewery wanted to make sure it was on the radar before starting the clock on its lofty fundraising goal.
“We wanted to give them a little more notice ahead of time,” he said. The company is also seeking about $150,000 through a private round of investing – another area in which ProFounder will help start-ups navigate regulatory challenges.
The brewery is dangling a unique prize for high-rolling backers: Give $10,000 or more, and they’ll create a themed seasonal brew in your honor. But the real payoff, he says, is getting a beer company up and running.
“You actually get to help start it and be a part of that,” he said. “We think that’s pretty cool.”
To Learn More Click Here
For three years, Minneapolis-based comic publisher Raighne Hogan paid to produce his company’s annual anthology of comics by local artists – the Good Minnesotan – out of his own pocket. That was getting pricey. So when it came time this year to put out the Good Minnesotan 4, Hogan tried a different tactic: passing around a digital collection plate to seek support from the public.
What is crowdfunding?
Crowdfunding is the latest trend for artists, startups and small businesses: raising money from the public via online pledge drives, a few dollars at a time. A handful of regional projects have used the tactic to jump-start their efforts, and one Fargo company is banking on it to launch a brewery.
For three years, Minneapolis-based comic publisher Raighne Hogan paid to produce his company’s annual anthology of comics by local artists – the Good Minnesotan – out of his own pocket.
That was getting pricey. So when it came time this year to put out the Good Minnesotan 4, Hogan tried a different tactic: passing around a digital collection plate to seek support from the public. It’s a tactic known as crowdfunding, and it has taken root among a handful of regional business projects in recent years.
Those range from small artistic ventures like Hogan’s, which sought and raised $1,000 over the summer from online backers, to ambitious business ideas like the Fargo Brewing Company, which will seek $55,000 in early 2011 to start what would be the state’s only homegrown brewery. They dangle perks, swag and goodwill to coax contributions out of friends, family and strangers in amounts ranging from $1 to $10,000-plus.
Crowdfunded projects are powered by websites that feature a wide range of projects for public consideration. Hogan used New York-based Kickstarter, which features a handful of other Minnesota projects, while the Fargo Brewing Company is using Los Angeles-based ProFounder.
The specifics vary from site to site, but the basic model stays the same: Users post a project with a funding goal and a time limit, typically a month, and solicit pledges from backers with a short pitch. Many Kickstarter projects also include videos. If the goal is met on time, the pledges are locked in and the site takes a few percentage points of the money raised as a fee. If not, no money changes hands.
To call such sites investment vehicles would be a misnomer: Backers don’t own a piece of the projects they support or turn a profit (indeed, any such arrangements would entangle the sites in considerable regulatory oversight). Support a successful ProFounder project, and you’ll do no better than break even; support a Kickstarter project, and you won’t get your money back at all.
To bring in backers without the prospect of financial gain, crowdfunding projects usually turn to creative incentives. A $500 Kickstarter donation to a Minnesota Fringe Festival play might get you dinner with the actors. A $100 investment in the Fargo Brewing Company will get you a company T-shirt; $1,000 will get you on the guest list of exclusive company events, including tastings.
Dana Mauriello, president and co-founder of ProFounder, said getting that kind of reward for investing in a company “is almost like being a member of a cool club.”
In ProFounder’s case, there’s also a philanthropic incentive to give. Backers are repaid with a percentage of the company’s revenue over a set number of years. Once they recoup their investment, any revenue that would have gone toward repaying them goes instead to a nonprofit of the company’s choosing for the duration of the agreement.
“You believe in the person, you believe in the business, you believe in the business mission, you just want to see this business exist in the world,” Mauriello said.
But getting a crowdfunded project to catch on amid a sea of other offerings isn’t easy. ProFounder, which launched in December, has dozens of projects, while Kickstarter has hundreds. Hogan said standing out on Kickstarter meant working aggressively to start his project. He started a blog and “bothered friends and family” throughout the process.
“A lot of it was just trying to create some noise on the Web,” he said.
It doesn’t always work. Rip Smith, a West Virginia-based photographer, tried to raise $3,500 via Kickstarter this summer for a photography project to document abandoned places in rural North Dakota. He secured just $432 in pledges.
Smith said he thinks his fundraising goal was too ambitious. He also said he never seemed to garner much momentum on Kickstarter – he was never highlighted on the home page or chosen as the featured project of the week.
“If I had to guess, success in that medium requires either someone who already has a large constituency to whom to appeal, or the project needs to capture people’s imagination in some way,” he said. Smith said he did the North Dakota project anyway, and might try crowdfunding again for future projects.
Jared Hardy, one of the partners in the Fargo Brewing Company, said the importance of building an engaged audience is one of the reasons the company decided to launch next year rather than this month. He said the brewery wanted to make sure it was on the radar before starting the clock on its lofty fundraising goal.
“We wanted to give them a little more notice ahead of time,” he said. The company is also seeking about $150,000 through a private round of investing – another area in which ProFounder will help start-ups navigate regulatory challenges.
The brewery is dangling a unique prize for high-rolling backers: Give $10,000 or more, and they’ll create a themed seasonal brew in your honor. But the real payoff, he says, is getting a beer company up and running.
“You actually get to help start it and be a part of that,” he said. “We think that’s pretty cool.”
To Learn More Click Here
Friday, December 17, 2010
Crowdsourced Philanthropy: How Do We Measure The Impact of the Crowd?
Beth KanterAuthor and blogger
Posted: December 17, 2010 02:44 PM
I read George Weiner's excellent post about some of the pitfalls with crowdsourced philanthropy. I agree with him on many points, but I think there are different models and designs out there beyond the Vote for Me crowdsourcing approaches he describes.
Over the past two years, as part of my work as Visiting Scholar for nonprofits and social media at the David and Lucile Packard Foundation, I have had the opportunity to participate in (NNF), a community of practice for funders who are intentionally investing in and working through networks. The focus has been to develop practice and share insights on networked effectiveness. I've had the pleasure working with Diana Scearce, from Monitor Institute, who has been facilitating and weaving this network.
There are several learning cohort groups, including one on better understanding network impact. Recently, I presented a high level overview of crowdsourcing, including examples from the lens of funding and doing. It was good opportunity for me to look back at the crowdsourcing chapter in our book,
The Networked Nonprofit, and update the examples and thinking. The presentation was followed by a discussion about how one might evaluate efforts to engage crowds.
Crowdsourcing is defined broadly as the process of organizing many people to participate in a joint project, often in small ways. The results are greater than an individual or organization could accomplish alone. There are four different models of crowdsourcing, There's isn't one best way to do it -- and many organizations use a combination of these models to meet their objectives.
(1) Creating Collective Knowledge or Wisdom
A group of individuals has more knowledge for solving a problem than any single individual. Collective intelligence creates a quilt of knowledge that many people can distribute.
Public Insight Network in Minnesota is a network of 75,000 people who help make Minnesota Public Radio News by sharing their observations, insights, and experiences with reporters and editors who may share these insights through a story or on the website. The measures of impact for this project include diversity, deeper and more relevant reporting, and better connection with listeners.
Maine Health Access Foundation did an experiment on Facebook, including it in its channel to promote a funding opportunity but also posted the initial letters of inquiry on their Facebook page to get feedback. The measure of impact is to determine whether the comments and feedback strengthened or improved the final proposal.
Crowdsourcing for knowledge creation can include "mashups of data."
Ushahidi is an open source platform that facilitates crowdsourcing through the use of SMS/cellphones and online mapping. It has been used in disaster relief, for example, in Pakistan, and other scenarios from London Tube strike to election monitoring to mapping crime incidents Atlanta.
(2) Crowd Creation
Crowds create original works of knowledge or art.
The Royal Opera used Twitter to crowdsource a new opera. They encouraged Twitter users to send suggestions for the plot. The opera staff collected the suggestions and summarized them on their blog. Opera is not the only art form, there's been crowdsourced choreography And, a symphony orchestra, made headlines when they crowdsourced musician auditions for the Youtube Symphony orchestra.
How do you measure the impact of the crowd here? Does being engaged in the creation of the work spur more appreciation for the art form and hopefully attention and participation? Does crowdsourced creativity reach a different (younger) and new audience segment? While it is probably difficult to absolutely prove cause and effect, implementing a crowd artistic creation requires a discussion about letting go of control or at least being explicit about how creative contributions will be accepted or curated or added to the work. Do you accept everything or is there curation?
(3) Crowd Voting
The crowd votes, rates, or gives feedback and tips on ideas, products, places, and even people. Internet platforms make it is easy for crowds to vote, rate, and provide feedback. Think Yelp, eBay, or Amazon.
Crowd voting and choosing based on popular vote has been used in Cause Marketing. There has been an explosion of "Vote for Me" contests that have become contests in techniques for vote getting and inspired cause fatigue at worst. At their best, they spread the awareness of a commercial brand and provide an opportunity for small nonprofits that don't typically receive large amounts of funding to win dollars.
Crowd sourced philanthropy, on the other hand, does not typically select the best idea or project to fund by popular vote. Many foundations have taken a hybrid approach, acknowledging a role and place for expertise in addressing a "wicked problem" or spurring innovation. Hybrids include a mix of openness and curated decision-making by experts.
How to structure crowd sourced philanthropy based on voting or feedback depends on the outcomes of the project, a theory of change. The Knight Foundation's News Challenge, Case Foundation's Make It Your Own awards, and Island Collaboration Fund are examples of the hybrid process and linked to a clear theory of change. Key in the implementation is being clear and transparent about how funding decisions will be awarded. An impact question is -- "How innovative are the ideas as a result of using a crowdsourcing process?"
Voting, rating, and feedback crowdsourcing projects have applications beyond philanthropy and marketing. It can help organizations make a traditionally closed process more transparent and ultimately improve the level of feedback. Conferences have taken this approach to shaping their agenda. NTEN used a hybrid crowdsourcing approach to solicit panel proposals for its NTC 2011, similar in design and approach to the method SXSW has used. Looking at impact is a question of how the crowdsourcing broadened the diversity panelists and topics as well as how this approach increase awareness and registrations for the conference. And, reaping that value also depends on using an efficient way to crowdsource the decision.
Brooklyn Museum implemented a crowdsourced photography exhibit experiment called " Click! A Crowd-Curated Exhibition." Using a hybrid approach, there was an open call for photographs that attracted 389 entries. The entries were ranked by 3,444 people, including both general public, museum goers, and expert curators. You can compare the ratings by level of expertise. One of the surprises, was that the average amount of time that people looked at the online images was 22 seconds -- compared to in-person in exhibit studies that found 6 seconds. Measuring impact is how did the crowdsourcing process attract a more diverse selection of art works, but also how it might have encouraged more people to appreciate the works.
Next Step Design is an experiment in "Crowdsourcing Public Participation in Transit Planning." Traditionally, government agencies ask for public input on planning projects by holding open meetings and workshops. The purpose of this project was to get this public input in a different way: online. Did the use of crowdsourcing enable them to get more and more in-depth feedback compared to the traditional method? Was it more efficient?
(4) Crowd Funding
This category taps the collective purse, encouraging groups to fund an effort that benefits many people. The idea is to leverage the funds of the crowd to complete a project they support. For the funders side, we looked at the America's Giving Challenge from the Case Foundation. Impact measures not only looking at the total amount raised, but also the adoption of new online social fundraising tools which was a key objective.
There are a variety of platforms for crowd funding, including Causes, Crowdrise,
Razoo, GiveZooks and
others.
A big takeaway for me was that you have to very clear and intentional about what you want the crowd to do and your design has to facilitate the crowd's work as efficiently as possible. A lot has to do with the technology platforms and how well it automates some of the crowdsourcing work flow. If you're crowdsourcing funding decisions, you have to be very clear and intentional about funding decisions are made and ensure that your design is really leveraging your intended your outcomes.
What you think?
Follow Beth Kanter on Twitter: www.twitter.com/kanter
To Learn More Click Here
Posted: December 17, 2010 02:44 PM
I read George Weiner's excellent post about some of the pitfalls with crowdsourced philanthropy. I agree with him on many points, but I think there are different models and designs out there beyond the Vote for Me crowdsourcing approaches he describes.
Over the past two years, as part of my work as Visiting Scholar for nonprofits and social media at the David and Lucile Packard Foundation, I have had the opportunity to participate in (NNF), a community of practice for funders who are intentionally investing in and working through networks. The focus has been to develop practice and share insights on networked effectiveness. I've had the pleasure working with Diana Scearce, from Monitor Institute, who has been facilitating and weaving this network.
There are several learning cohort groups, including one on better understanding network impact. Recently, I presented a high level overview of crowdsourcing, including examples from the lens of funding and doing. It was good opportunity for me to look back at the crowdsourcing chapter in our book,
The Networked Nonprofit, and update the examples and thinking. The presentation was followed by a discussion about how one might evaluate efforts to engage crowds.
Crowdsourcing is defined broadly as the process of organizing many people to participate in a joint project, often in small ways. The results are greater than an individual or organization could accomplish alone. There are four different models of crowdsourcing, There's isn't one best way to do it -- and many organizations use a combination of these models to meet their objectives.
(1) Creating Collective Knowledge or Wisdom
A group of individuals has more knowledge for solving a problem than any single individual. Collective intelligence creates a quilt of knowledge that many people can distribute.
Public Insight Network in Minnesota is a network of 75,000 people who help make Minnesota Public Radio News by sharing their observations, insights, and experiences with reporters and editors who may share these insights through a story or on the website. The measures of impact for this project include diversity, deeper and more relevant reporting, and better connection with listeners.
Maine Health Access Foundation did an experiment on Facebook, including it in its channel to promote a funding opportunity but also posted the initial letters of inquiry on their Facebook page to get feedback. The measure of impact is to determine whether the comments and feedback strengthened or improved the final proposal.
Crowdsourcing for knowledge creation can include "mashups of data."
Ushahidi is an open source platform that facilitates crowdsourcing through the use of SMS/cellphones and online mapping. It has been used in disaster relief, for example, in Pakistan, and other scenarios from London Tube strike to election monitoring to mapping crime incidents Atlanta.
(2) Crowd Creation
Crowds create original works of knowledge or art.
The Royal Opera used Twitter to crowdsource a new opera. They encouraged Twitter users to send suggestions for the plot. The opera staff collected the suggestions and summarized them on their blog. Opera is not the only art form, there's been crowdsourced choreography And, a symphony orchestra, made headlines when they crowdsourced musician auditions for the Youtube Symphony orchestra.
How do you measure the impact of the crowd here? Does being engaged in the creation of the work spur more appreciation for the art form and hopefully attention and participation? Does crowdsourced creativity reach a different (younger) and new audience segment? While it is probably difficult to absolutely prove cause and effect, implementing a crowd artistic creation requires a discussion about letting go of control or at least being explicit about how creative contributions will be accepted or curated or added to the work. Do you accept everything or is there curation?
(3) Crowd Voting
The crowd votes, rates, or gives feedback and tips on ideas, products, places, and even people. Internet platforms make it is easy for crowds to vote, rate, and provide feedback. Think Yelp, eBay, or Amazon.
Crowd voting and choosing based on popular vote has been used in Cause Marketing. There has been an explosion of "Vote for Me" contests that have become contests in techniques for vote getting and inspired cause fatigue at worst. At their best, they spread the awareness of a commercial brand and provide an opportunity for small nonprofits that don't typically receive large amounts of funding to win dollars.
Crowd sourced philanthropy, on the other hand, does not typically select the best idea or project to fund by popular vote. Many foundations have taken a hybrid approach, acknowledging a role and place for expertise in addressing a "wicked problem" or spurring innovation. Hybrids include a mix of openness and curated decision-making by experts.
How to structure crowd sourced philanthropy based on voting or feedback depends on the outcomes of the project, a theory of change. The Knight Foundation's News Challenge, Case Foundation's Make It Your Own awards, and Island Collaboration Fund are examples of the hybrid process and linked to a clear theory of change. Key in the implementation is being clear and transparent about how funding decisions will be awarded. An impact question is -- "How innovative are the ideas as a result of using a crowdsourcing process?"
Voting, rating, and feedback crowdsourcing projects have applications beyond philanthropy and marketing. It can help organizations make a traditionally closed process more transparent and ultimately improve the level of feedback. Conferences have taken this approach to shaping their agenda. NTEN used a hybrid crowdsourcing approach to solicit panel proposals for its NTC 2011, similar in design and approach to the method SXSW has used. Looking at impact is a question of how the crowdsourcing broadened the diversity panelists and topics as well as how this approach increase awareness and registrations for the conference. And, reaping that value also depends on using an efficient way to crowdsource the decision.
Brooklyn Museum implemented a crowdsourced photography exhibit experiment called " Click! A Crowd-Curated Exhibition." Using a hybrid approach, there was an open call for photographs that attracted 389 entries. The entries were ranked by 3,444 people, including both general public, museum goers, and expert curators. You can compare the ratings by level of expertise. One of the surprises, was that the average amount of time that people looked at the online images was 22 seconds -- compared to in-person in exhibit studies that found 6 seconds. Measuring impact is how did the crowdsourcing process attract a more diverse selection of art works, but also how it might have encouraged more people to appreciate the works.
Next Step Design is an experiment in "Crowdsourcing Public Participation in Transit Planning." Traditionally, government agencies ask for public input on planning projects by holding open meetings and workshops. The purpose of this project was to get this public input in a different way: online. Did the use of crowdsourcing enable them to get more and more in-depth feedback compared to the traditional method? Was it more efficient?
(4) Crowd Funding
This category taps the collective purse, encouraging groups to fund an effort that benefits many people. The idea is to leverage the funds of the crowd to complete a project they support. For the funders side, we looked at the America's Giving Challenge from the Case Foundation. Impact measures not only looking at the total amount raised, but also the adoption of new online social fundraising tools which was a key objective.
There are a variety of platforms for crowd funding, including Causes, Crowdrise,
Razoo, GiveZooks and
others.
A big takeaway for me was that you have to very clear and intentional about what you want the crowd to do and your design has to facilitate the crowd's work as efficiently as possible. A lot has to do with the technology platforms and how well it automates some of the crowdsourcing work flow. If you're crowdsourcing funding decisions, you have to be very clear and intentional about funding decisions are made and ensure that your design is really leveraging your intended your outcomes.
What you think?
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Join the crowd to give your business a helping hand
Written by Michell Rodger
Publisher: Scotland on Sunday - The Scotsman Date: 12 December 2010
"Small gifts from many are just as powerful as large gifts from a few."
It has never been tougher to start a new business or grow an existing one. There might be ideas aplenty, but there certainly isn't money aplenty. No matter what anyone says, securing a working capital loan from a bank or an equity investment stake from an angel is incredibly tough.
But there is an alternative. Have you considered raising the money you need from non-profit foundations set-up to provide financial support to business start-ups, disaster relief, cultural events and suchlike?
So-called "crowd funding" has grown out of crowd sourcing. According to Wikipedia - possibly one of the best examples of both - it is the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the internet, to support efforts initiated by other people or organisations.
It looks like a financial model spawned and supported by online communities, but in fact crowd funding is not new. The Statue of Liberty was funded by donors, inventor Thomas Edison benefited from patronage to develop some of his more "outlandish" ideas, and Barcelona Football Club is owned by its members.
It is also a game-changing model that allows the most innovative businesses to steal a march on their rivals.
When Naked Wines was launched two years ago, founder Rowan Gormley knew the business would only survive if it could deliver better wines for less money than its competitors. Crowd funding enabled him to do that.
The company now has 100,000-plus customers who between them invest £1 million every month. The crowd-sourced capital has helped 22 winemakers set up in business and export to the UK for the first time (they previously didn't have the funds to do so) and helped them produce 85 exclusive new wines, which have won 37 international wine medals and gongs.
Crowd funding is the key to survival for independent winemakers. According to Gormley, the traditional route to market is killing independents because the costs you can't taste make original wines too expensive for normal consumers. The solution? Get thousands of people together to buy the wine before it is made.
The end result is a "virtuous circle", where winemakers get to do what they love and make a living. And wine drinkers get authentic wines for less than they cost at the cellar door.
One couple to benefit from the Naked Wine Angels' crowd-sourced fund is husband and wife Felipe and Constanza Garcia of Bravado Wines in Chile.
The pair raised the funds to go it alone when more than 1,000 Naked Angels pre-ordered 18,000 bottles of their first solo vintage in one afternoon. The entrepreneurial duo went on to win the Best Sauvignon Blanc trophy at this year's Wines of Chile Awards.
Serial entrepreneur Amanda Boyle is launching the first Scottish crowd funding venture, Bloom VC, in the new year. She got the idea from the music and film industries, where crowd funding has an established record of pulling together support from a variety of sources to bring a project to completion.
Boyle sees crowd-sourced capital as a paradigm shift for business start-ups. It's not classed as an investment, simply lots of people supporting lots of other people. The challenge, as she sees it, is in developing the system to introduce the business ideas, collect the donations and connect them in a safe and secure way.
"Everyone wins," says Boyle. "More new businesses mean more jobs and better quality of life. It sounds like a crusade, but it actually makes a lot of economic and business sense."
Scotland has a history of making things happen regardless of the hurdles and, when people feel that they are part of something, it's amazing what they achieve, says Boyle. Look around any town and you'll find examples of where local people have chipped in to finance a building, memorial, or event.
"Think about the neighbour's daughter making handbags, or the man at the end of the road who was made redundant and then started a delivery service. We all want to support the people around us when it contributes to the community around us," says Boyle.
In the words of Steve Case of AOL: "Small gifts from many are just as powerful as large gifts from a few."
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