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Crowdfunding: Why stories matter more than ever

February 18, 2011 By rjones 2 Comments
IndieGoGo founder Slava Rubin

Slava Rubin

I had a fascinating conversation recently with Slava Rubin, the co-founder and CEO of crowdfunding pioneer IndieGoGo. Though the interview was for an upcoming SmartBlog on Finance, Rubin is one of those wide-ranging thinkers who can’t seem to turn off the ideas once they start flowing.

One of his big ideas concerns businesses and their stories. “The latest generation wants a connection with the things they’re buying,” he told me. “They fundamentally want more than just a transaction. They don’t just want to buy a taco, they want to buy a taco that supports a taco stand in their local community. They want to know that they helped that business succeed.”

That need for connection favors businesses that “create a story with a beginning, a middle and an end.” In other words, customers want to know where they fit into the narrative and how they are helping to advance the story.

Small businesses might seem to have an advantage in creating this sort of connection, but Rubin says big companies, too, will find a way to leverage the power of storytelling.

“In a matter of time, you’ll see Starbucks cans at the supermarket, and you’ll be able to scan a code to see exactly who grew your coffee. Eventually you’ll be able to send an email to a farmer in Kenya, giving them feedback on their coffee. You become a part of the story.

“Forget IndieGoGo for a second; I think the concept is much bigger than what we do. It will change the way companies sell at the corporate level.”

Once again, this leads back to the central question for any entrepreneur: What’s your story? If you’re not telling it well, you’re missing out on one of the biggest trends in business today.

Filed Under: Crowdfunding, Marketing Tagged With: , , ,

Will tell stories for food

February 15, 2011 By rjones Leave a Comment

crowdfunding depends on storytellingCan you tell a story powerful enough to make total strangers give you money?

For many artists and entrepreneurs, it’s the power of the story that determines whether a venture gets off the ground. There’s no better example of this than crowdfunding, where aspiring creators can present their projects online in an effort to win financial backing.

Anyone who aspires to raise money for a new business or creative project should follow sites such as Kickstarter and IndieGoGo. Read the stories and ask yourself what moved you — or left you cold. Then check out each project’s funding level, and see if other readers had the same reaction. Over time, you’ll start to identify certain do’s and don’ts that will help you sharpen your own story for better marketing, fund raising, or what have you.

Want to see what I mean? Check out some recent projects that fell short of their funding goals — perhaps because they were:

  • Too didactic. No one likes to be lectured. If something is vitally important, show it with your story rather than berating us with your words.
  • Too academic. Focus your story on people, rather than theories, movements or other abstract concepts.
  • Too credentialed. This artist has an amazing resume, but resumes aren’t exactly compelling reading. Remember, your past accomplishments are only part of your story. Your personality, passions and plans are at least as important.

None of this is meant to suggest that any of the projects are unworthy of funding. (In fact, I actually contributed to Ms. Too Credentialed, but only because I know her work, which is always funny and insightful.)

The point is, you only have a few seconds to draw someone into your story, and there’s no better place to study the art of storytelling than at crowdfunding sites. So what are you waiting for? Get reading!

Filed Under: Crowdfunding Tagged With: , , , ,