#DigitalSkeptic: Crowdfunding Doesn't Work Like You Think, and Not Much Is New
NEW YORK (TheStreet) -- Griffin Reinhard recognizes that if investors rely on the crowd when it comes to crowdfunding, they're probably going to wind up all by their lonesome.
"It's not like people with money get up and go to Kickstarter or Indiegogo at 8 o'clock in the morning and decide, 'Oh, I'm going to give money to this idea,'" Reinhard said to me on the phone. The man is as close to a crowdfunding pro as I could dig up: He's director of digital media at The Crowdfund Mafia, a thriving San Diego-based crowdfunding marketing company.
"What really happens is backers hear about a campaign through their network," he said. "So you have to be out there promoting your service, or even the best idea has little chance."
Just guess what turns out to be The Crowdfund's Mafia's secret high-tech weapon when it comes to getting the next, hip socially funded product "made"?You got it: old-school dialing and smiling. "We started in the business of helping new products with their videos, copy and project pitches for their campaigns," he said. But that turned out, he said, to not be the biggest bang for the buck. Instead, getting the message out to potential backers was the real challenge. "So now we offer direct, human outreach to journalists, bloggers and other influencers," he said. drive the buzz to such slick offerings as the TILT Stealth MacBook cooling pad, ChargerGenie charging tote bag and the iDoorCam Wi-Fi connected doorbell. "We do offer deals where we turn over the press releases and contacts lists to startups for about half that cost, so they can use their own manpower," he said. "But if you have like three Twitter followers and you wait until your campaign begins to get the word out, it's too late." New age fundraising grows up
What's fascinating about digging into the crowded realities of modern crowdfunding with Reinhard is how quickly raising money in this new age is becoming like raising money in the old age.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV