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Niche Crowdfunding Sites Need to Aim Higher to Succeed

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Monty Python's Terry Jones talking to the last couple of years, Kickstarter’s growth as a source of disruption in the creative industries has been pretty hard to ignore. Om extolled the site’s virtues just the other day, and the concept that anybody who has an idea can try to raise money to get it finished has become a big hit — allowing them to raise millions of dollars for gadgets, fashion and even films. It’s so successful, in fact, that investors are now jumping in to back projects that don’t reach their target.

Kickstarter for Books?

Given Kickstarter’s success, it’s no surprise to see new services trying to piggyback on the idea of crowdfunding. So perhaps you shouldn’t be surprised to say hello to Unbound — a British startup trying to apply the same model specifically to books.

Unbound operates in much the same way as its cousin. First, authors get their projects listed on the site. The authors then explain what it is they’re working on, and if you’re a fan you can pledge money to the cause. When enough money is raised, the author works on the book and then, when it’s published, you get a lovely personal copy to thank you for your support. So far, so familiar.

The site, which is run by a trio of experienced British publishing hands, certainly taps into almost every buzzy idea in the industry right now: connecting creators directly to their audience, using what Kevin Kelly has called “1,000 True Fans”; the disintermediation of traditional publishers, whether by Amazon or self-publishing outlets like Lulu; and the move towards boutique or self-publishing as a way of bringing a greater share of revenues to authors themselves.

And it’s got some early projects from good names: Monty Python member Terry Jones (pictured above) is pitching a comic book about the sinister side of machines, for example. Amy Jenkins, the writer behind seminal British TV series This Life, is pitching what sounds like a solid piece of women’s fiction. Meanwhile the amazing Tibor Fischer, a brilliant author of dysfunctional novels, seems to be using it to publish a couple of new stories.

It looks like it could be fun. But I still can’t help wondering: Do we really need a new way to help authors raise money for their books?

The Inherent Paradox of Niche Crowdfunding

After all, Kickstarter already has a significant amount of activity around publishing. Looking at the site today, I can see dozens of open authorial projects in the fiction category alone, and a huge number have already reached their fundraising targets. Most have raised a sum in the hundreds or low thousands of dollars, but some have done very well — this version of Huckleberry Finn raised $30,000 for example.

Is it better to focus on niche opportunities like publishing, or take a broad church approach like Kickstarter?

My concern is that niche crowdfunding websites have been around for quite a while and they have never really made it big — and if you want to raise significant funds, you need to have a big audience., a site for crowdfunded journalism, has been interesting to watch for those in the news industry — but although it’s talked about, it hasn’t ever really broken into the big leagues. Similarly Sellaband, a Dutch website that connected music fans to artists in a similar way to Unbound, looked like it could really work — until it went bust in 2010. It’s still around today, just barely, after a German entrepreneur bought the company — but in falling over, it lost a lot of momentum and trust.

“Niche” Is Fine; It’s “Crowdfunding” That’s Limiting

Perhaps the difference is that Unbound isn’t just a crowdfunding site. It also takes steps into the breach as the publisher of those works. In fact, it’s possible that it’s actually misleading to think of Unbound as a crowdfunding site at all. On its author pages, the founders explain what’s really going on:

Currently Unbound is commissioning most of its projects from published authors, although we will include proposals from first-time authors that are submitted through literary agents. Unfortunately what we can’t do is promise to read unsolicited submissions: there just aren’t enough of us to do that yet, but keep checking back as we’ve got a plan up our sleeves which we’ll be launching soon.

So perhaps describing Unbound as a Kickstarter for books is misleading: maybe it’s better to think of it as a low-capital publisher. It seems that it does all of the traditional jobs (selecting authors, working with submissions, editing manuscripts, printing books) but mitigates financial risk by raising its authors’ advances from the public, rather than its own coffers.

The question remains, though, whether that model will that give it a longer life, or let it have a greater impact, than everything that has gone before it. Let’s see what happens.

3 Responses to “Niche Crowdfunding Sites Need to Aim Higher to Succeed”

  1. It is indeed an interesting paradox – one I’ve witnessed as the founder of Spot.Us.

    As I’ve always said from the start: Somebody could do what I’m doing tomorrow at the national or international level and have more success (ie: Spot.Us mainly focuses on local reporting – making even MORE niche).

    And I’ve also said that the concept of crowdfunding news is bigger than Spot.Us and crowdfunding is bigger than news.

    What irks me about not making it into the ‘big leagues’ as you note: Is that is a platform. Any news organization can use it and indeed the NY Times, LA Times, Oakland Trib, Mother Jones and others have from time to time.

    The problem is from my selfish news-bias if news orgs don’t own some platform that does this for them – they’ll be at the mercy of whatever other open platform allows them some access (If it were Steve Jobs they’ll have a strict platform ;)

    But that’s me on my high-horse of why didn’t news orgs create Craigslist.

    The larger point is a tough nut to crack. Whatever niche it is you pick – you instantly shrink the size of your potential crowdfunders – whereas kickstarter is a great catch all.

  2. Great post! Really like your ideas about the Paradox of Niche Crowdfunding. For example IndieGoGo started out as a platform for indie filmmakers, now they have community projects and startup business projects as well.