Events cost a lot of money to put together, particularly if the primary revenue generator is going to come through ticket sales. It can be tough to put together the cash in time to pay off venue contracts and vendors.
If you’re having a tough time funding the conference, concert or party you want to put on next, then you might have thought about crowdfunding. A lot of prominent businesses have been started through crowdfunding, so there’s no real reason why you shouldn’t make use of it in order to finance your next successful event.
You have to take into count some of the good and bad associated with financing your next event this way though and that’s what we’re going to discuss.
If you’re successful, you can now build a following
Think about it, if you were successful with raising the money for your event, then this is going to mean that you now have a nice email list with people who have shown that they support you and your cause. Why not utilize these in order to put together funds for future events? On top of this, you can also promote other items, services, and opportunities.
The good about using crowdfunding to finance your next event:
In trying to raise money there’s going to be an investment of time, energy and money associated with it. Yes, it can sometimes cost money to raise money. Forget about the cost though, all of these are really associated with risk. Crowdfunding takes away the risk or makes it very low. You don’t have to pay anything out of pocket or you pay very little.
Hitting your target or surpassing it will mean a lot of good for your event
Crowdfunding can be the perfect way to experiment with just how in-demand an event idea might be. If you use crowdfunding and it fails miserably, then you might want to think strongly about what this means for that event idea. If the campaign is super successful, then this is a good indicator that there’s plenty of demand. This can help reduce worry as you get closer to your event date.
You can create intrigue before the event even begins
With crowdfunding, you’re trying to get money from people who will also have the ability to look at the promotions associated with it. Due to this, there’s a chance your event can go viral. You can make use of interesting pictures and videos that call attention to events you’ve held in the past in order to create excitement for your next event.
The bad about using crowdfunding to try and finance your events:
Your idea can get hijacked by someone with more capital than you
Using a crowdfunding campaign puts you at risk of having your idea stolen by someone who likes it, sees the potential in it and has the money right now to get it going and fast. At first, it may seem like a good thing, because it means you have a good event idea, but it’s not if the goal was to establish yourself as the innovator of that event idea.
Campaigns that work require a lot of time and capital
If you just launch a campaign through Kickstarter or Indiegogo and hope it will be a hit, then you’re setting yourself up to fail.
In order for a campaign to be successful, it’s going to require lots of time. Strong copy will be needed, rewards will be required at different stages and you’ll need to make videos and pictures to promote the campaign. A respectable amount of money will be required just to get the campaign started.
The platform takes a percentage as well as credit card processors
It doesn’t really matter where you decide to go to launch a crowdfunding campaign, the platform is going to take a generous cut of whatever you raise. Then you have to deal with the cut the credit card companies take. All of this requires you to be even more successful than you might expect in order to offset these costs.
The odds aren’t always on your side
Unfortunately, the majority of crowdfunding campaigns aren’t successful. The number is about 70% to 90%. As you can see this is pretty big and it should let you know just how tough things can be. Decent amounts of time, energy and money can be used to get something started only to have the campaign fail.
You need to carefully weigh the good versus the bad. Crowdfunding an event is good if you already have a strong social media following or are just good at promotion in general.