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Over the last few years, crowdfunding has surged in popularity, from product campaigns to funding personal trips to monthly donations to keep the lights on.

Something incredible about crowdfunding is its ability to bring the idea of investment to a lower level. Previously investment seemed daunting and so far away, when it required thousands upon thousands of dollars to pour into stocks or bonds or real estate. Today, it seems so simple.

Unfortunately, many people do not view crowdfunding as investment. It’s easy to see a new product that could be and pay for it, viewing it as a purchase instead of as a risk.

When your brand or product is based on crowdfunding, you are producing brand equity and perception. You are creating an environment for your customers to see you in a certain way, and you must be prepared for however that unfolds.

In today’s episode, we’ll be discussing the pros and cons of crowdfunding to help you evaluate if it’s right for your brand.

Highlights, Takeaways, Quick Wins
  • Crowdfunding is an investment, not a purchase.
  • It doesn’t matter what you want the consumer to understand about your business, it matters what the consumer does understand.
  • The person that’s penalized for a failed crowdfunding campaign is not the company, it’s the customer.
  • Ultimately, with crowdfunding or preorders, you’re building brand equity and expectations.
  • You are building your brand with every single thing that you do.
  • Nobody owes you anything—you’ve got to earn peoples’ money, trust, patience, and investment.
  • When you use crowdfunding, you’re exposing the back end of getting your business funded, which changes the perception of your brand.
  • You can be very successful with crowdfunding depending on your goals.
  • Crowdfunding isn’t a replacement for a healthy business model.
  • You have to build trust because that’s the only way you’re going to get loyal customers and build relationships.
  • If all you have is an idea and zero money, ideas are completely worthless.
  • Don’t promise an ideal future that you can’t deliver on.
Show Notes
  • 06:12 Cory: I want this show to be about making educated decisions for your own brand. I don’t want to sit here and say, “crowdfunding is terrible, you shouldn’t do it,” or, “crowdfunding is amazing, you should do it.” I want you to absorb and think about the lessons we can learn from this today.
  • 06:57 As with any trend, it’s easy to hop on the bandwagon instead of thinking, “What will this mean for my brand in the next five or 10 years? How can I use a trend to my advantage? How do I see longer, because I don’t know if a trend will be the way it’s happening next year?” Kyle and I definitely have very pointed views on the idea of crowdfunding, but I want our listeners to come into this with an open mind because we want to have open minds. We want to think through these things and consider the pros, cons, failures, and successes. We want to bring it all together and see what we can learn.
  • 07:51 Kyle: Just because we wouldn’t necessarily do something for our own brands doesn’t mean we won’t try to look at that angle for ourselves. An important part of this show will be dissecting why you would do this or why you wouldn’t. It’s also important to note that not every brand can do the same thing. Depending on how you want to grow your brand, there may be things you can and can’t do, and crowdfunding is definitely one of those polarizing things. It takes you down a completely different path than having your own funding for your brand as it grows.
  • 08:36 Cory: We are primarily going to talk about crowdfunding for business or an exchange for goods. We’re not necessarily going to address crowdfunding for a cause. There is a difference in crowdfunding for nothing in return and crowdfunding for something in return. There’s a difference between giving and expecting something and giving and not expecting something in return.
  • 09:12 Let’s say you’re giving to a cause, like a horrible disaster in some part of the world, and you give in charity without wanting anything in return, but you want someone else to benefit from your gift. Maybe someone is going on a trip to help the people in this case and you give $1,000. That’s not expecting anything in return, it’s a no strings attached gift. There are crowdfunding for those things but that’s not primarily what we’re going to talk about. Today we’re going to talk about when you crowd fund, invest, or give to something with the expectation that you’re going to get something in return.
  • 10:02 Kyle: A good example of this is using something that could be a business. Let’s say you do woodworking as a hobby where you build tables and chairs and you have crowdfunding open. People can donate to you because they enjoy your YouTube videos or tutorials of it. This is just something you’re interested in, but you weren’t looking to make a business of it. On the other side, you might want to make it a brand or a business, but it depends on your goals.

Crowdfunding Is an Investment, Not a Purchase

  • 11:10 Cory: This is one of the misunderstandings that I see when it comes to crowdfunding. Let’s say you browse the campaigns on Kickstarter and you find a universal USB cable that can plug into any device and you want it. You go to the page, find the tier you want, and make a pledge. A lot of people see it as, “If I pledge this thing and it gets to 100% funded, I will get this thing,” but that’s actually not how it works with Kickstarter or any other crowdfunding platforms.
  • 12:25 crowdfunding platforms are not retail stores. It’s not finding something, clicking buy, and as long as it gets to 100%, you’re definitely getting it. Sometimes that’s how it works, but that’s not the model. The model is investment. It’s saying, “This is something we want to accomplish and we need your money to see if we can make it happen.” That’s investment.

It doesn’t matter what you want the consumer to understand about your business, it matters what the consumer does understand.

  • 12:50 Kyle: If you start a Kickstarter campaign with the intention of raising money and eventually having a product, then you can’t expect your audience to suddenly understand that themselves. If they have this preconceived notion that once it gets to 100% it’s a real thing, that’s important to keep in mind because it doesn’t matter what your intentions are, it matters what actually happens.
  • 13:21 If those people are let down by the fact that when it’s 100% funded, they don’t get their product, that’s not in your control because they’ve had their ideas of what’s going to happen and it can’t really be changed. It’s tough as a consumer who’s not looking at Kickstarter as a business perspective to even understand that.
  • 13:59 A good example of this is CottonBureau.com where designers will create a design and put them on a shirt mockup that’s for sale. Once they get to a certain amount of backers for that shirt, they’ll print, pack, and deliver the shirts. It’s a guaranteed thing and consumers are used to that model, so they’re not as cautious on things like Kickerstarter. They assume they’ll get their money back if it doesn’t make 100% and if it does, they get what they paid for.
  • 14:42 Cory: That’s the expectation that’s been set. A lot of people look at something like a crowdfunding campaign and think the risk isn’t that big because some guys raised $350 billion to create a comic book. You have to look at it from a consumer’s perceptive. People are used to clicking a button on Amazon and getting the thing they want delivered to their house.

People are used to exchanging money for something—that’s how transaction works.

  • 15:31 That’s what business and transaction is. All of commerce is based on exchanging something for something else. When people give to an investment, there’s no guarantee that they’re going to get their money back—it’s a risk. Gary Vaynerchuck recently talked about how he was meeting with a guy he had invested $150,000 in for a startup. The guy said, “I lost all the money, but at least I learned something,” but Gary is like, “You lost six figures of my money and you’ve lost my trust.”
  • 16:26 Gary said he was going to tell all the investors he knows that this guy is not a good steward of their money. There’s so much more riding on that, but people don’t think through that as a consumer. Generally, people think something looks really cool and they want to back it. They don’t think, “I want to see if this thing will happen so I’ll put $250 into it that I may or may not see again.” If people thought that way, it probably wouldn’t he as popular.
  • 17:14 Kyle: Honestly, I don’t even think platforms like Kickstarter or Indiegogo are even investment sites. Making investments is putting your money into something that will eventually bring returns. When a business person like Gary Vaynerchuck puts money in something, he expects to see a return of more than he put in or he gets a percentage of the company. He may invest $100,000 and get 10% of the business he’s investing in, so he’s going to get way more than the $100,000 he invested.
  • 18:06 On Kickstarter, you’re essentially doing donations, because even if the product comes to life and you get it at your door, that’s all you get. You’re not getting more than you paid for in return—Kickstarter is not a return on investment. They need people to help provide finances to start their business, but I wouldn’t go so far as to say it’s an investment.
  • 18:44 Cory: It becomes a purchase when you receive the item, but it becomes an investment when you see a return on it. If you don’t see a return on it, it remains a donation.
  • 19:08 Kyle: They could say you’re going to get more than you get. For example, they could say, “If you fund us for $200, you get this $250 item.” That’s their markup sales price, that’s not you actually earning more money. If they send you the product and $50 or $100, then you would be making money from your investment, but that’s not how it works. I’m really big on not going into debt in any area of my life, but especially in my business, so investors are not something I’m looking for in my personal brand.
  • 20:05 With investors, you get money that you can use and then you pay them back with interest. That’s essentially how an investment works—it’s a loan from a private entity instead of a bank. They’re also funding something that a bank probably wouldn’t fund for as much as you need because you don’t have much to back your loan. Your company isn’t really worth anything, so they can’t put that on the line for you and that’s what investors do. Then, you take it a step further with Kickstarter, which isn’t business people giving money to finance something that will eventually get returns.
  • 20:44 It’s everyday people contributing something, so from the brand’s perspective, they’re saying, “We don’t want to go to these investors and, essentially, get loans that we have to pay interest on. We’re just going to get people to give us money and create something.” The danger of that is they don’t have the urgency to make something and then turn it into something profitable so they can pay back these things on time. They don’t ever have to pay it back.

The Unexpected Can Happen

  • 21:37 Cory: I wrote this lesson down and I could immediately think of five examples. The first example is the Coolest Cooler, which raised $13 million. The product was a cooler that had speakers, a blender, a bottle opener, and some other stuff built in. They raised $13 million and they had everything lined up for manufacturing, but the manufacturing company that produced the motors for the blenders went on strike. They couldn’t produce this particular motor so all of their plans and production halted after only producing a couple hundred. They were trying to find another company that made that motor and they couldn’t find another company so they had to choose a different motor all while they were slowly hemorrhaging money.
  • 23:04 It slowly started falling apart because of this one unexpected thing and backers started getting angry because they passed the shipping dates. Then, they decided to put some of the coolers they had produced on Amazon to “keep the lights on,” so backers who had supported the project weren’t getting the cooler’s they had paid for, but people could buy them on Amazon. There was this huge uproar and in March of this year, the founder announced they were trying to get $15 million more to make this work!
  • 24:26 Kyle: Earlier we talked about people expecting to get the product from a crowdfunding site when it’s funded. What could Coolest Cooler have done to prevent that? It is their fault the product isn’t out on time, but at the same time, one of their vendors is at fault for not having motors. The only thing I could think of is that they should have produced them upfront, but that’s what they needed backing for.
  • 24:58 Cory: That negates investment and that is the hard part about preorders or crowdfunding.

The person that is penalized for a failed crowdfunding campaign is not the company, it’s the customer.

  • 25:26 It’s a bummer your company failed, but companies fail every single day. What you’ve done now is gotten a lot of people to give you money they won’t see again. They’re confused, they’re hurt, and they’re angry. You can’t foresee these kinds of problems. Another example is the Pee Chee 3D Printer that had a crowdfunding campaign. It’s a consumer 3D printer that you can put in your house.
  • 26:12 They raised around $350,000 and one of the partners stole $320,000 to build his house. They had to release this statement and what’s going to happen now? Are people going to sue? Is he going to get arrested? There’s this whole mess that you can’t foresee. It’s going to suck for the guy who’s partner stole all his money, but the only person who is hurt here is the consumer.
  • 27:24 Kyle: I would assume this guy’s business partner will have some legal action to try to get his money back, so let’s say he gets all the money back. It’s still up to his discretion if it’s returned to consumers.

Preorders vs. crowdfunding

  • 27:50 Cory: I guarantee those people aren’t going to see that money again. Daniel asked, “Is preorder synonymous with crowdfunding?” I don’t think so, but it can be, which is just semantics. crowdfunding is, “We want to do this thing but we can’t right now, can you please help us?” while preorders is, “We’re doing this thing and you get it first.” If you’re saying, “Preorder this on Kickstarter,” that’s not what it means.

Starting a Kickstarter campaign is saying you don’t have the capital and couldn’t come up with a healthy business model.

  • 28:34 You create this thing where you can’t get started until someone helps, where a preorder is that you’re getting started and others can get on board. You can use some of that capital to help out with the project, but it’s at a different point in time. I don’t have a problem with preorders. They can be a great form of validation, but I don’t think they’re the same.
  • 29:25 Kyle: A preorder technically denotes that you’ll get a refund if this thing doesn’t go out on time. You’re ordering it ahead of time and by ordering a product, you’re obligated to deliver that product and if you don’t, the person will get a refund for that. crowdfunding in general is saying, “I’m donating money to you so you can make this product and hopefully deliver it.”
  • 29:59 Cory: The unexpected for Zano Mini Drone was that they got overfunded. They were creating this tiny drone that could follow your smart phone around. Their original goal was $200,000 and they raised a few million, and because of that, they couldn’t follow through on some of their promises and they had so many orders they weren’t expecting, they increased production like crazy.
  • 31:24 They had a short window of time and this crazy amount of production, so a terrible product that was falling apart went out to all these people. Then, they release a statement that they went bankrupt and had to turn off all the servers, so anyone who had a working drone, the drone stopped working because the computers were turned off. This makes me laugh because they got too much money and most people wouldn’t think that’s a problem.
  • 32:00 Kyle: That makes me wonder why they didn’t cap the tiers. On Kickstarter, you can say that only a certain number of people can back a tier, so you can do it in a way that won’t be overfunded or promising too much. I’ve also seen some Kickstarter projects where they cap the tiers at a certain amount and even if they went to the end of the cap they created, they wouldn’t get funded. They artificially made themselves never get funded.
  • 33:14 Cory: Kickstarter doesn’t care. They have millions of dollars for every project that failed because they took their cut. They just wipe off their hands and say, “That was your bad.” That’s another problem with crowdfunding—you’re putting your trust in something with very little protection.
  • 33:48 You’re asking for the trust of the people who are willing to give you their hard-earned cash for this thing you say you’re going to do. That is so much more than money, but people don’t think of it that way. People think they’re going to try to make this happen and it’s just a bummer if it doesn’t. Suddenly, you’ve lost the trust of so many people who have given something in to you, whether you call that an investment or purchase. You can lose that so quickly.
  • 34:32 You’re also asking for patience because there could be delays, complications, and shipping errors. I backed a campaign last year called Hydrate, a bluetooth connected water bottle, that was promised to ship at the end of last year but every month there was a delay. I was thinking that I would never recommend this company to someone because I had such a poor experience with their brand.

Ultimately, with crowdfunding or preorders, you’re building brand equity and expectations.

  • 35:07 You’re building your brand with that. There was a company called Click that launched a Kickstarter campaign when the Apple Watch was first released, and it was an adapter that allowed you to put your Apple Watch on any watch band. It took them months and months with all of these issues coming up and by the time the Apple Watch was released, there were products just like theirs on Amazon for $12 that worked great.
  • 35:50 They were so focused on getting their orders to upset backers that when I received mine—they sent several of them because they were so late—they weren’t even all the same! Some of them were preproduction models. It was so bad and it lost my trust in them. I lost any appreciation for them as a company and I would tell everyone to not interact with that company. You are building your brand with every single thing that you do and that’s so important to keep in mind.
  • 36:39 Kyle: We talk a lot on this podcast about your brand as a personality to personify the entire experience. This is an important part because what we’re talking about here isn’t necessarily the financial side of your business. We’re not saying you can’t get backers for your thing because you need to be able to make it and get funding for it. This is your public perception and how your brand is perceived by people, which is in your control in how you project yourself, but it’s not in your control to say, “No, that’s wrong. You have to think of us in this other way now.”
  • 37:21 Kyle: That takes time and effort. Honestly, I would say a company that goes on Kickstarter to get their product funded to start their business, I don’t think they can ever be seen as a high-end premium brand. Maybe if they changed or worked on a rebrand they could be seen that way. Let’s say that two people really want this particular nice car. One guy asks other people for money so he can get this car and take someone he likes on a date. People give it to him because they think, “He doesn’t have very much money because he needed to do this to get money.” Contrast that with someone who got the car but never asked for a dime. You assume that guy has money and is probably a more upscale individual. He may have asked for money from his family or a family member may own the car, but the perception from other people is different. They can’t see the back end.

When you use crowdfunding, you’re exposing the back end of getting your business funded, which changes the perception of your brand.

  • 39:30 If you do that, your perception is much different than someone who shows up with a new company and a new product. You look much more put together. It’s not to say that crowdfunding is bad, but that’s something important to keep in mind. We’re talking about asking for more than money here and it is related. The things like trust and patience that you’re asking for from people are different than if you come into the market with a well prepared product.
  • 40:06 Cory: It’s all about perception—a brand is how people feel about you. A brand is how people see you. A brand is what people say about you when you’re not in the room. You always have to consider what all of your online or in-person actions are going to say about you. That’s how you build your brand and get people to feel a certain way about you.

There Are Plenty of Success Stories

  • 40:55 There are companies who have been able to build a healthy brand and healthy business model. The first one that comes to my mind is Pebble. They were small and only wanted to raise a few hundred thousand to make this watch that paired with smart phones. It exploded and they’re doing really well. There are a lot of people who love Pebble more than Apple Watch. Another one that comes to mind is Oculus Rift—they’re a forerunner in the virtual reality world. They were eventually purchased by Facebook for $2 billion. It took them years to deliver. I think just earlier this year they delivered the first Oculus Rift to a buyer in Alaska, but that is a success story.
  • 42:24 They created a fantastic brand and they were purchased. There’s an online comic written by Matthew Inman called the Oatmeal and he crowd funded a game called Exploding Kittens. To date it’s the most successfully crowd funded game on Kickstarter. This guy was hugely successful and he had built an audience. Another example is Lazer Team, created by the online entertainment company, Rooster Teeth. Lazer Team was a feature film that raised over a million dollars and brought in a huge audience to that.
  • 43:48 There are success stories. If you go to Patreon right now, they have a thing that says, “We’re sending out millions of dollars to Patreoners!” I don’t want to negate the success stories. There are projects and products that are crowd funded that become successful, you just have to weight it with everything else.
  • 44:26 Kyle: You can be very successful with crowdfunding depending on your goals. If you goal is to be perceived as a particular type of brand, you need to evaluate how this changes your perception. For example, some people like Pebble more than the Apple Watch, but Pebble and Apple are definitely perceived differently.
  • 44:59 Regardless of whether you like the product more or not, Apple is perceived as this premium, high-end brand and Pebble is more of the affordable option. That works for them. That’s what I meant earliler when I was talking about being perceived as a premium brand. You don’t have to be a premium brand, but if that’s your goal, I don’t know that crowdfunding is the best option to do that.
  • 45:50 Cory: Count the costs. Are we just in the business of raising money instead of establishing a business model? We’re in the microwave century, where we want to throw something in the microwave, heat it up for five seconds, and then eat a dinner instead of spending a couple of hours on a solid meal. You have to count the cost of what that’s going to mean for your brand.

Nobody Owes You Anything

  • 46:44 Open up your favorite search engine and type “Hilarious Failed Kickerstarter Campaigns,” and you’ll find all of these campaigns where people say, “Here’s this thing I want to make. Please help me because I’m the best.” No one owes you anything. You don’t deserve for someone to give you money. Just because you spend 10 minutes to make a crowdfunding campaign doesn’t mean you suddenly have the right to peoples’ money, trust, or patience. You’ve got to earn peoples’ money, trust, patience, and investment.
  • 47:49 Stop pretending you can just show up and people will pay you money! It sickens me that people start these campaigns and think, “Everyone else is making money so I might as well get a piece of the pie.” That’s not how it works. You don’t just show up to someone’s house and say, “I’ve never met you before, but we’re going to get married just because.” That never works. Nobody owes you anything so stop pretending that they do.

You have to build trust because that’s the only way you’re going to get loyal customers and build relationships.

  • 48:37 Kyle: This is my biggest frustration with platforms like that because of the way people use them. It’s assumed that people should give you money for something. I know there are people who would snub their nose at being a street performer playing guitar and asking for money, but that’s what they’re doing online. They’re creating things and expecting people to hand over money to them and they want to be seen as a legitimate business at the same time. It just doesn’t mix.
  • 49:29 They’re not putting in effort and time trying to make it something great. Every brand starts with zero and every brand has to deliver something in order to gain peoples’s trust. You have to put in time and effort to get those things. You can’t shortcut your way around gaining trust, interest, time, and money from people. When you do, it’s very much an entitlement.
  • 50:05 You think you don’t have to wait because your skill and ideas are so good that you shouldn’t have to put in the time and effort to make this happen. The worst part is, when someone really does have a great idea or product and they don’t get the funding they feel entitled to, they drop it and move on. They think it’s a failure and they don’t have the tenacity to keep pushing, make it a thing, and grow a healthy audience.
  • 50:56 Cory: I was talking with Ed Williams, a Community member and good friend of mine, the other day about crowdfunding. He’s a comic artist and recently put out a course on branding. He showed me a guy who tried to raise $15,000 on Kickstarter to create books for a new comic character. He raised $5,000 and then it ended, so he created a GoFundMe account for $5,000 and tried to get everyone who gave to the campaign to give him the $5,000. That’s so bad! I want people to build up trust with their brand. We’re living in a world where it seems like entrepreneurship means having an idea and raising the money. These people aren’t developing healthy business models.

Crowdfunding Isn’t a Replacement for a Healthy Business Model

  • 52:54 Crowdfunding isn’t a replacement for a healthy business model because if you had a healthy business model, you wouldn’t be crowdfunding. Business is saying, “How am I going to create ongoing transaction that’s going to give me profit in the long-run?” Often, crowdfunding campaigns are made to accomplish a single goal, like you’re going to create a card that credit cards or loyalty cards can be loaded on and swiped anywhere. That was a product called Coin that had so many delays and then Apple Pay and Google Wallet came out. Now, in the US, chip cards are required and it wasn’t then, so now they have to go back to the drawing board.
  • 53:29 Coin was just bought by FitBit because they want to create a wearable product that can be used to pay for things on the go. Now it’s a whole different business model. Sometimes that changes, sure, but crowdfunding is saying, “We need this to get started and once we have it, then we’re good.” But that’s not creating an ongoing relationship. That’s not sustainable. Here’s the truth: you can create a healthy business that gets started from crowdfunding, but it’s very rare and takes a lot of intentionality. You can’t just throw your thing up on Indiegogo.

Benefits to crowdfunding

  • 55:14 Alison says, “I’d love to hear about the benefits of crowdfunding if you think there are any.” I know there are a lot of people who love Patreon and platforms like it because it builds community. There are people who love giving in these ways because they feel like they’re part of what someone is doing. Kyle, are there benefits to crowdfunding, and if so, what are they?
  • 55:54 Kyle: I think there are benefits. If you have a genuinely good product you’d like to launch and you do need that backing, it’s an option to have, but I think you should be prepared ahead of time to launch that product. The ideal way to approach something like Kickstarter is to actually have the backing yourself upfront. I know that sounds counterintuitive, but if you can actually be able to launch this thing—it would drain you if you did it by yourself but you could—and you do crowdfunding to reinforce the funding and get it launched, then you can deliver no matter what.
  • 56:52 If your thing doesn’t get funded or something goes wrong, you already have the financial backing to say, “I’m going to make this right and I’m going to supply this for people.” I know people may think that’s not the point of something like Kickstarter, but I think that’s a way it’s actually viable and sustainable. Say, “We have a small scale product and we want to go larger with production, but we don’t have the funding for that. That’s why we’re on Kickstarter. We want to take this to mass production.” That makes logical sense to me.

If all you have is an idea and zero money, ideas are completely worthless.

  • 57:29 Ideas don’t mean anything. If you project your idea in a way that someone else can feel like they have that idea with you, they’re willing to give money to that because they want to see the reality of that and you’re the person who can make it a reality. But what’s really happening is you’re not making it a reality, you just have the idea, think it’s cool, and ask for money to make it happen.
  • 58:10 You’re not talking to manufacturers and making sure everything is ready to go and because you’re not doing that, you get to the end and realize there are production problems or you didn’t get the funding you need. Problems with production typically means they didn’t have production figured out ahead of time and now they have to figure it out. If you backwards build, where you have a product figured out without having it in hand, it’s so much healthier than just having a worthless idea.
  • 58:52 To me it’s taking advantage of people because you’re making them assume you’re going to deliver this thing. Don’t promise an ideal future that you can’t deliver on. When you can’t deliver, you’re putting up a facade, getting money, and then leaving. It’s like the snake oil guys in the old west. These guys would sell things out of carts and they claimed they were remedies for things when really they were water and oil that didn’t do anything.
  • 59:46 They promised things like legs growing back if you put this ointment on it and people believed it! People heard this hope that was being projected, gave them money, and were left without money or a solution. That’s what a lot of these crowdfunding campaigns turn into—an idea that never comes about that leaves people without money and filled with disappointment. Who know what you’re doing to this person? Maybe they didn’t have $200 to give to your Kickstarter campaign but they did it for whatever reason and now they can’t do something they need to do.
  • 1:01:01 Assuming you’re entitled to things is where brand falls apart really bad. If you’re a legitimate business that has a plan and you’re going into this to get funded before you can figure out how to make money yourselves, that’s one thing. If you’re just going into it with an idea and you think money comes from the sky—like some people assume with credit cards—that’s not how it works.
  • 1:02:03 Cory: That’s why I say if a campaign fails or something goes wrong, the people who pay the price aren’t the people who started the campaign, it’s the people who bought into it.
  • 1:03:30 Kyle: We’re not saying you can’t do crowdfunding or you’re a terrible person, or your brand will fail if you do it. There are legitimate ways to do any type of business approach, but you have to do it in a way that makes sense for your brand and in a way that you can actually deliver on. If you’re running an online business, you need to realize the numbers of people and dollar counters are coming from real people, they’re not just numbers or money coming from the sky.
  • 1:04:12 It’s real people’s money that are backing you for whatever reason and if they believe in you enough, they’re going to give money they possibly don’t have. Though that is their choice, you still have the responsibility of having created so much hype and then letting them down, potentially more than just not getting their product.