Crowdfunding to source capital for new businesses has become popular, especially for the independent new creatives (writers, songwriters, filmmakers, software entrepreneurs) who do not have access to traditional funding sources. Crowdfunding seeks a large pool of backers, each providing small amounts of funds necessary to launch a new initiative. It is used by businesses, individuals and even for charity . I had an out-of-work, un-insurable friend use it so he could make a trip to the doctor and get some tests done!
There is an implied contract between investors and the entity seeking funds where investors provide some level of capital in exchange for finished products or services (rewards-based crowdfunding). This is often not well-defined and the risk exists that investors will not get a return from their investment. Some crowdfunding efforts are donation-based and use compassion to raise funds without any return expected. Other models are credit-based (Kiva) or equity-based, where the investor receives a tiny share of equity in the company.
Crowdfunding is almost always conducted using an online platform. Gofundme and Kickstarter are among the largest. I have been intrigued, but have not been comfortable with crowdfunding models to date.
Then I heard about Publishizer and was smitten. Publishizer is more than just a payment platform; they are a writing community and broker between authors and their readers and service providers. It was built specifically with authors in mind. I, as an author must convince Publishizer that my work has merit (similar to convincing an agent or publisher) before they are willing to represent me. I need to show evidence of both my completion to date and intent to finalize the project. You also see my plan on the Publishizer site so you can be convinced also.
Then a campaign goal is established (in my case US$ 10,000) which covers payment for tasks to complete the book such as editing, book cover design, layout and printing. If the goal is not met, all funds are returned. This provides assurances to the investors that the author has sufficient funds to bring the book to market.
What is unique is the campaign is based around preordering the book and associated services. In my case, I have ebook, hardcover copy, signed hardcover copy, and premium patronage packages available for ongoing support and Q&A with the author. I also have corporate sponsorship packages including signed copies of the book, wine appreciation team building courses, and sit-down dinners and discourse over wine for corporate teams and clients. The campaign revolves around preordering the book, but also provides different tiers of offerings to address different buyer’s interests.
Publishizer takes the risk out of crowdfunding for both investors and authors by establishing and ensuring the preorder limit is achieved. The author has the assurance they have enough funding to complete and pay their service providers, and also has the information to determine the size of an optimal first printing. Additionally, Publishizer handles quotes and negotiations to build my team. I already have an editor, but they provided alternatives for graphic designers at half the price I was looking to pay in Australia and low-cost printing and distribution contracts. Using Publishizer’s world-wide network, I secured my graphic designer in New York and my printer in Singapore!
I choose Publishizer for authors crowdfunding model because it:
- is based on a well-defined preorder campaign with explicit understanding between author and reader
- defrays risk for investors and author by monitoring and ensuring market interest is achieved within 30 days (time of campaign to achieve goal or return funds)
- provides author access to support team not available to many independent authors to professionally and quickly get their books to market
If you are an independent author looking to help fund getting your book published, contact Publishizer. And if you are interested in how to drink and appreciate wine more, take a look at my Publishizer preorder campaign which runs until April 15, 2014.
Steve Shipley, author of Wine Sense, out July 2014
© 2014. InkIT Publishing. All rights reserved.
InkIT Publishing on Facebook
Inspirational Writing and Publishing Pinterest Boards
Twitter: InkIT Publishing @inkitpub; Steve Shipley @shipleyaust
