There are four types of crowdfunding for film and video, and which method you choose depends on your project, your goals and financial needs. In this movie, author Kelley Slagle explains each type of rewards-based crowdfunding, including all or nothing, keep it all, and continuous, and also explains equity crowdfunding.
- There are four types of crowdfunding we'll discuss for film and video. Which method you choose will depend on the type of project, your goals, and financial needs. The first three are rewards-base method, where backers receive goods or services in exchange for their donation. All or nothing or fixed funding. If you do not reach the goal that you set, you do not receive any funds. This adds an urgency and a sense of legitimacy to your campaign and your project. The Broken Continent's initial crowdfunding effort was an all or nothing campaign, because if we didn't raise at least $40,000, we couldn't afford the costuming, fight choreography and other expenses, and the pilot couldn't be made.
We returned to the all or nothing option for our second post-production campaign, and were fortunate to meet that goal as well. Keep it all or flexible funding. You receive all funds raised, minus commission to the crowdfunding platform, whether or not the project's goal amount is met. This method is particularly good for when you only need supplemental funding. Of Dice and Men was partially funded through personal sources and our keep it all campaigns purpose was to lessen that burden as much as possible. While our goal was $30,000, we were still very successful in raising about 50% of that and significantly reduced our out-of-pocket costs.
Continuous funding. The continuous method is not for one-time contributions. It allows a setting of a monthly maximum donation and is good for on-going projects and episodic content like a web-series. This method builds a community around your content and allows for engagement with your fans. The fourth option, equity crowdfunding, is different. As of May 16th 2016, the option for equity crowdfunding became legal. This IPO light allows the raising of funds through investors that receive equity or points in your film.
While we won't fully explore all of the ins and outs of equity crowdfunding for film in this class, I will share one platform with you that is for film equity crowdfunding exclusively.
- Why crowdfund?
- Recommended crowdfunding platforms
- Finding and researching your audience
- Planning your campaign
- Breaking down your film budget
- Creating a campaign video
- Offering rewards and perks
- Running your campaign
- Following through and keeping contributors happy