Looking for a way to finance your next production or stage of growth, but find that traditional banking is problematic and an IPO not the way to go? Consider crowdfunding.
The JOBS Act brought sweeping changes to America’s small businesses, including opening the door to public financial solicitations without the traditional hurdles of stock offerings, although with a new set of rules governing the playing field.
Savvy marketers will watch various crowdfunding platforms to monitor the pulse of what is popular with consumers that have money to spare.
The recent launch of nonequity based crowdfunding platform Offbeatr.com, which targets adult related creative projects, is an example of this new financing trend tailored to the needs of porn professionals — as well as budget-strapped amateurs trying to enter the big leagues.
According to the company, Offbeatr allows users to explore projects or pitch straight, gay, or lesbian oriented adult project proposals for art, books, education, games, movies, physical products, or websites; providing adult product and digital content creators with an outlet to express and fund their sexual creativity while potential supporters can explore unique projects catering to their sexual interests.
Ben Tao, CEO of Offbeatr parent Extra Lunch Money, says there is a screening process for projects posted to the site, which includes a public voting period before funds may be solicited from supporters.
“We realized we might miss projects that have a supportive community,” Tao stated. “Putting in a public voting phase helps identify good projects we might have missed and gives project creators feedback to improve their projects so they can be successful.”
Savvy marketers will watch various crowdfunding platforms to monitor the pulse of what is popular with consumers that have money to spare.
After a project passes the voting phase, funding can begin. While Tao explains that all-or-none crowdfunding is more of a gamble than a sure thing, Offbeatr offers two ways to raise money, providing an added incentive for using the platform.
According to the company, Offbeatr users can profit by selling rewards, which follow the all-or-none funding model popularized by mainstream crowdfunding site Kickstarter. Additionally, they are also able to sell digital products, such as movies, ebooks, photos and more, using the Offbeatr platform, allowing supporters to purchase and immediately download this content.
Sales from these digital products are paid out to the creator, even if a project does not reach its funding goal.
“It’s scary knowing that if you don’t reach your goal, even if you are close, that you end up with nothing,” Tao notes. “By introducing the digital product sales component we give project creators a way to hedge their bets and give supporters an additional way to support a creator without having to wait months for their reward.”
