Crowdfunding and Paying Consultants on a Percentage Basis

 

Rose Spinelli

By  CEO The Crowdfundamentals &  CrowdFundBeat  Sr. Guest Editor,

Crowdfunding Consultant, Voted 100 Most Influential Thought Leaders, Crowdfunding Professional Assoc Board of Directors

The other day my acupuncturist and pal and I were talking about the ups and downs of running our own businesses. At one point he said that when he first started out even though he knew his business would profit, he made a decision he’s never regretted: not to take on clients who had weight-loss or smoking-cessation goals. At first I thought it was because he didn’t feel he could in good conscious reduce this noble healing art to such superficial ends.

I was wrong. He told me he turned down client after client because he soon came to realize these people were looking for shortcuts—gain without pain—and with these types of medical problems, he said, client compliance is at least 80% contingent on their recovery. In other words, all the needling in the world from the most masterful healer, which he is, isn’t going to help if the client didn’t follow the lifestyle change regimen he laid out for him or her.

Warning! This post will not be popular with everyone, but I’m okay with that

As a crowdfunding consultant, that really struck a chord with me. Anyone who’s contacted me about working together already knows I’m not in this business just to tell you what you want to hear to get your money. (My acupuncturist and I also talked about the downside of this policy is turning away business…but the upside is good karma and way fewer headaches!)

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Weeding is Not Just Gardeners’ Work

When someone contacts me about working together I ask them to fill out a brief but telling questionnaire. The answers give me an insight into not only their readiness but also their work ethic and the chance that they will comply with my recommendations on what they need to do to be successful.

Because of the questionnaire, I end up with some of the most motivated clients ready to roll up their sleeves and work; it’s a great collaboration that’s fun for me.

If they wind up flaming out—crowdfunding is hard work, after all—I can say with all respect that it’s really not my concern. I have put my best foot forward, have shared all the knowledge I’ve accumulated, but doing the work is on them, not me. (Not everyone works that way, so keep on reading.)

Money for Nothin’ (Chicks for Free)? Nah

It’s become more commonplace to field requests from people who want me to work on a percentage basis. Usually they add that working with the promise of payment will be motivational for me and keep me honest. They note howbeneficial it will be for me when their campaign succeeds.

I say no because about 99.9% of the time requests come from people who have got the no-pain-all-gain attitude about crowdfunding. (A lot of lack of understanding about crowdfunding figures in prominently, too.) Call me old fashioned but I happen to like to get paid for my work as I go. (Lawyers, any of you work on motivation?)

So You Want to Pay on a Percentage

I know there are companies out there that will work on a percentage, but much like me and my questionnaire I’m pretty sure they’ve got a list of criteria the potential client must meet in order to qualify that goes something like this:

  • They should have an existing, active, and engaged social media following
  • They should already be creating marketing content to prove authority and trustworthiness
  • They should have a good idea that’s well thought through, truly innovative and have already expended considerable personal capital, both in sweat and some financial investment
  • They should have a solid understanding on how this tool called crowdfunding really works and plan to be an active working participant from beginning to end

Assuming the idea is good, an exception that even I would make would involve working for a well-known person/celebrity because what they might lack in the list above they make up for in name recognition that can be harnessed successfully to attract media attention. But alas those come around rarely. (Okay, never. So far!)

Final Word

Oh, and if you do find someone who’s more than happy to work for you on a percentage basis without asking anything of you in return? Be afraid. Be very afraid. Because they’re probably pretty inexperienced and are looking for a way to learn as they go. On you. But there are no shortcuts and reputations are a two-way street: yours could suffer in ways that you will end up paying in more costly ways than dollar-wise.

This article originally appeared in The Crowdfundamentals

Photo credit: placardmoncoeur, Morguefile

About Arthur :

Rose Spinelli is a crowdfunding consultant. In January 2014, she  was named among the “Top 100 Thought Leaders in Crowdfunding Today.”

As a trainer and educator Rose realized it would be helpful for people to have access to valuable information on how to crowdfund that was reasonably priced and all in one place, a way to learn at their own pace in their own time. So Working the Crowd: Know the Fundamentals was born. It’s a six-part online learning series that covers everything you need to know from pre-launch to fulfillment. (Please go to myServices page to see the Video Series breakdown.)

Rose wrote a Tip of the Week column for Crowdsourcing.org for a year and is currnetly writing Rose Recommends, a weekly Q&A for all things crowdfunding. She has been a panelist and/or moderator at multiple crowdfunding conferences.

 

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