The more I think about crowdfunding lately, the more I realize how good of a thing it is. If you are not familiar with crowdfunding I would like you to check out Kickstarter. Kickstarter and similar sites are doing something truly unique. They are letting people decide what kind of products, services, and entertainment they want in the world.
The way it works is there is a financial goal to do a project and a deadline to reach that goal. People go to the site and decide whether they want to fund your project and for how much. If the goal is reached by the deadline, then all of the money is billed and the project gets the money to make it happen. If it doesn’t reach the goal, everybody gets their money back.
The great thing about this is we are again using the internet and technology to take a middleman out from between what products go to market and the people who will consume them. In every industry there are people who are responsible for deciding what kind of content people will like and usually this input shapes the goods and services we have available. This is the recording industry, the movie industry, the gaming industry and so many more. Sometimes these people are good at their job and the world receives great treasures that are wanted and enjoyed. Its when they don’t that we get product that nobody wants. Then something even worse happens. The companies who make the rejected products try to cram it down the public’s throat or do forced marketing to try and make the products cool.
The world is always changing and people are changing. Big companies in charge of making money and staring at the bottom line don’t usually want to change what they are doing.
Crowdfunding is solution to some of these problems. It gives people what they want. Even if a large piece of the population is happy with what is given to them, there is always a subset of us who are wishing things existed. Crowdfunding is a solution to a problem that puts a sick feeling in my stomach. That is when a great idea is beat down by the money over everything mindset. I think this will push innovation and put those middlemen out of business. If not, at least get them listening to the people.