A Look at Crowdfunding at 10: Creative Financing? Or Just "Begging for Money?"

These days, it seems like so-called "crowdfunding" and "crowdsourcing" has become a regular part of our social landscape.

In early May, crowdsourcing as a "thing" turned ten years old.

A couple of days ago, I actually found myself creating a Patreon account for my own artwork, after which I had to pause and ponder about the nature of this whole new beast.

Deep blue Columbines

Technically Speaking...

Technically speaking, crowdfunding can be a great way to "thumb your nose at The Man" when you have a promising idea/product you really believe in and conventional banksters are shaking their heads and turning you down for financing.

I remember wanting to start a pretty unique import and retail business back in 1985, and it was all but impossible to get financing, even though we had a large amount of our own equity to put in. Because we were "trying to do something that hand't been done before," banks didn't want to touch it. Why couldn't we just open a video store, instead? After all that had already been done to death, so it was a known quantity.

Eventually a very small local bank funded the project.

Ironically, when I finally closed that business — fifteen years later — most video stores had already become obsolete and gone out of business.

I'm telling this story because I very much have a "weak spot" for alternative financing.

Variegated Petunias

Changing Landscapes...

The reason I bring up the "begging for money" issue is that the financial landscape has changed considerably since the very first KickStarter project saw the light of day, ten years ago.

It's not "strictly business" anymore.

Mind you, the first KickStarter wasn't "strictly business," either... I just included it as a tip of the hat to the 10th anniversary of crowdfunding.

In fact, I would submit that "personal use" has by far surpassed business/project funding, when it comes to using crowdsourcing to finance something.

However, more often than not, when I see someone refer to their GoFundMe, it seems they are hoping the general public will take pity on them to fund their car repair. Or their kids' trip to camp.

Close-up of a Sunflower

Moral Scruples?

I had a really difficult ethical dilemma as part of the process of creating aforesaid Patreon account. I don't subscribe to the idea of money for nothing, nor to the idea of simply exploiting something legitimate (cough... cough... Steemit) for personal gain.

But a lot of people don't entertain such thoughts, they just see what amounts to "a free handout." Of course, the counter-argument is that it's a free world, and nobody is forcing anyone to fund these projects. And — ultimately — we can't protect people from their own stupidity... and from choosing what "jokes" they throw good money at... like the now legendary "Potato Salad Guy" who ended up raising over $55,000... simply to make a bowl of potato salad.

Maybe my sense of humor is broken...

Where's the problem?

Well, I suppose you could argue that there is no problem, but I suspect the proliferation of what we might call "frivolous use" or "system abuse" makes it that much harder for those who are actually taking it seriously to accomplish their goals and ambitions.

Small boat, sailing uncharted waters....

Walking a Fine Line

Getting back to the moral scruples of my own situation, I had to go through a whole series of rationalizations and reasonings before I could back away from the "bagging for money" stigma.

Ultimately, I realized that there are two primary ways to use crowdfunding: "Reciprocal" and "non-reciprocal."

Simply having a "Send me your cash because I want to go buys stuff!" is very different from using crowdsourcing as a sort of exchange. For example Public Radio (at least here in the US) has fundraising drives in order to keep producing radio... so if you have a pretty successful podcast that you really only have time to do if you're not at work, you are actually providing a "something" in exchange for the funding.

Similarly, my art campaign is centered on the idea that whereas I love the creative process, I don't have time (or energy) to make art when I am working for a living 70 hours a week. That's simple math; simple reality.

Sometimes the funding is actually a path to self-reliance: With a little help (I already have 10+ years experience telling me that I have something that SELLS) I would be able to use 20-30 of those hours to CREATE and ultimately end up with an income that would enable me to not have to work externally as much, while providing for my own survival.

But I am not convinced most people "think it through" that much...

Anyway, Happy Anniversary to Crowdfunding! Without a doubt, it has been an innovation that has changed the way we do things!

Thanks for reading!

How about YOU? Have you ever used a crowdfunding tool to raise money? What was the project? Were you successful? Are you and artist or creative who uses Patreon? How is that working out for you? Leave a comment-- share your experiences-- be part of the conversation!

(As usual, all text and images by the author, unless otherwise credited. This is original content, created expressly for Steemit)
Created at 190524 10:22 PST
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