Crow Pleasure When Crowdfunding

After analyzing about 80,000 Kickstarter crowdfunding campaigns, researchers at Queensland University of Technology and Switzerland’s, Center for Research in Economics, Management and the Arts recommend that the appeals to prospective funders of such campaigns limit the mention of money—both having to do with the amounts requested and the potential value of payoffs for a funder.
     Crowdfunding is a hybrid of a charitable donation appeal and a pledge of return on investment. The crowdfunding sponsor is asking people to pool their money in order to get a project going and promises, in return, that the contributor will receive an attractive payoff from the project’s accomplishments. The payoff might be material, such a packet of cookies from a bakery founding, or experiential, such as reserved seats to view the premiere of a funded movie production.
     The recommendation to minimize money cues is because when people start thinking primarily about money, their motivation to spend money on others rather than themselves fades. In the studies, when there were more money cues in an appeal, the result was fewer funders and smaller amounts per funder.
     Crowdfunding projects generally address creative pursuits such as the arts or a novel approach to a traditional product category. Crowdfunding funders are rarely participating because they consider the project to be a savvy financial investment. The anticipated payoff includes a substantial dollop of emotional pleasure, including playfulness and discovery. The amounts of money involved are secondary.
     This is especially true when the crowdfunding format is, as with Kickstarter, all-or-nothing. The funder’s pledged monetary amount is debited only if the sponsor’s total funding request is satisfied. Each funder is assured that if they pay, they can assume the full project will come alive.
     When a project had as a chief benefit sustainability of the physical environment or of social community, this benefit brought emotional pleasure in itself for a typical crowdfunding participant. Then, mentions of money did not overwhelm the impact of the other text in the posted appeal.
     However, the risk remains of extraneous text diluting the appeal. Crowdfunding occurs almost exclusively via the internet. Brief text blocks rather than a long prospectus are necessary in order to attract notice and maintain attention. Researchers at Virginia Tech and University of Texas-Dallas verified that in DonorsChoose crowdfunding appeals to implement school classroom projects, a detailed description will result in lower funding totals than will a short overview.

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