An observation I’ve made recently is the rise in film projects on crowdfunding platforms like IndieGoGo that take the ‘flexible funding approach’. The idea behind this is that whether the project makes the target or not, the project’s team get to keep whatever is pledged. This is different to the ‘all or nothing’ approach whereby people pledge an amount, but their cards are only charged if you reach 100% of your goal (or in the instance of Seed & Spark, 80% of your goal).
If you’ve never committed to a crowdfunding project before, the flexible funding model might seem like a really tempting thing to do. You are asking for money after all, and if you’re like me, the thought of asking it from strangers can be quite confronting. I have done it myself. After failing at an all-or-nothing approach, I was too scared to try it again for a second round of funding, instead going for the softer “we’ll make the film regardless of what we raise” approach.
But here’s why you might be doing yourself a disservice if you choose to run that campaign without the hard target of a fixed funding approach.