What’s the psychology of a crowdfunder? In few words, one could argue a risk averse one.
I’ve seen some great ideas crash and burn because the crowdfunder was terrified of risking any money to help their campaign succeed and so the campaign dies on the vine, Howard Sherman claims on Crowdfunding Insider.
On an interesting piece published on Sunday of which Oliver* posts some excerpts, the expert points out what the majority of people approaching crowdfunding seem not be aware of is that crowdfunding is business and like every business it carries with itself some level of risk.
Far too many crowdfunders have zero experience or education in the business world so they enter the crowdfunding arena woefully unprepared leading to a tragic outcome.
By contrast, however, there are few very advanced users who expect campaing to fail. Why?
They’re using crowdfunding as a market research tool to test product validation. If the campaign succeeds, they go ahead with production and perk shipping. If it fails, they drop the idea like a hot potato and come up with a whole new product idea and try all over again.
Find out more here.