Saturday, January 3, 2009

IndieGoGo Helps Build Cash and Audiences

I heard from IndieGoGo. Here is what they had to say about their Web site. Sounds like a great resource for building an audience and some cash at the same time. 

GoGoDanae says:

Hi there, I'm with IndieGoGo and just stumbled upon your entry. You are correct; we have had many filmmakers raise various sums of money and various percentages of their budget. Some filmmakers whose budgets are quite large and fully funded are still carving out a percentage of their budget to raise via fans on IndieGoGo purely as an audience-building and marketing strategy. They understand the value of 1000 people contributing $10 for a credit in the film is much greater than 1 person contributing $10,000. In the former case, you now have 1000 people talking and buzzing about your film with all their friends and possibly even bragging about how they got to be a film patron with only $10. It's great viral/grass-roots/organic marketing. So what's happening is that Fundraising is becoming the new Marketing. Plus, by building a fanbase before and during the production, you're making your project more attractive to other more traditional types of financiers and distributors. The risk profile of investing in a project with a fanbase is much more attractive than a project with no embedded audience. At IndieGoGo we believe the future of film finance rests in a hybrid approach - pulling together all types of funds, and using each type to spur others. Also, on IndieGoGo all contributed funds go directly to the filmmaker, whether or not the project reaches its goal. if it does reach a goal, the filmmaker can always open another goal to fund the next phase of the project. The number of funding goals is limitless too. I hope that helps and clears things up a bit. Good luck with your project! Cheers and Happy New Year! GoGoDanae

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