Is Crowdfunding Becoming More Expensive?

For many entrepreneurs and aspiring business owners, crowdfunding by posting their projects in Indiegogo.com or Kickstarter.com had allowed their dream products and services to flourish online. Thousands of campaigns, both silly and truly beneficial, were completed through the help of backers.

The crowdfunding market is now maturing as a stable, income-generating and profit-based platform. This might be why it is becoming more expensive.

1.    The Example

In a close-knit community, a person could write a business or product plan in a sketchbook, notebook or a napkin. Then, they can post the concept online and share it with others, who could then provide feedback or call on potential contributors to help with the design. Today, many entrepreneurs are spending thousands of dollars and their time to create the perfect example, such as a product prototype or a service test case.

2.    Video Production

Gone are the days where you just need your webcam to show people your plan and how you created your prototype. With thousands of campaigns to compete with, you’ll need a video and an idea that stands out. A professionally-produced video campaign for your crowdfunding project could go from £1000 to even £8,000 in worst-case scenarios. Yikes!

3.    Public Relations

Marketing and public relations also help create more noise for your project. You could actually have some marketing professionals plan and create your internet marketing plan for you for a packaged deal of £420 on average. A celebrity tweet to their followers could cost double or triple this amount. However, this is all about the noise right?

So, is crowdfunding becoming more expensive? I still believe so.