GigFunder – Check Out This Unique Business Idea
|May 18, 2012||Posted by Louise under Online Business Ideas|
In my previous post You Want To Start Your Own Business, But What?, I suggested looking at your skills, talents and passions and making them marketable. I also gave a few examples of some entrepreneurs who accomplished this. And now I have another example for you. A real unique one!
This morning, I stumbled across Inc.Well’s David Wolinsky interview GigFunder’s Matt Pearson on Idea Generation and Execution with Matt Pearson, the founder and CEO of GigFunder, an online start-up so unique and promising that I had to share it. (image courtesy of pixajen Flickr.com)
Matt Pearson, a graduate of the Acton MBA in Entrepreneurship, turned his love of music, his frustration with the inability to see artists perform in his city, and his online savvy into a business that unites and supports both fans and artists.
In summary, performing artists register on GigFunder, listing their costs for touring. Fans who want to see specific artists in their own city go to GigFunder and create campaigns to raise pledges for the tour, using social media to spread the word. If the minimum tour amount is raised, pledgers are charged via PayPal. Plus fans can also be rewarded with gifts from the artist like free tickets, signed merchandise and more. If the campaign fails, fans and artists aren’t charged a dime.
So in essence, fans fund and promote the tour of their favorite artists using online tools. It’s an example of the emerging financing model called crowdfunding, where people pool their efforts and resources to help others or organizations reach their goal.
How then does GigFunder make money? It is a business, after all. For all successful campaigns, they charge a 7% success fee and Paypal keeps 3% per transaction.
GigFunder launched on May8, 2012 with 13 artists already committed. It’s presently restricted to US artists and cities only because of work visa complications for artists when crossing borders. That may just give some of you a few ideas, if you know what I mean (wink,wink, wink), should you live outside of the States…
So, what does Matt Pearson suggest you do to test your idea and make sure it’s marketable? Here’s what he replied in his interview:
So can how other entrepreneurs tell if their idea has traction and is worth pursuing?
Matt Pearson: The biggest question that they need to answer is how is this benefiting everyone involved? Like, what I’d recommend is creating a chart of who benefits because of your idea. I would say that if you are thinking about starting a company and you can’t demonstrate how much of a win it is for all parties, then it’s probably not worth pursuing.
If you analyze GigFunder, you soon see that Matt walks the talk. The service he provides benefits all of the interacting players. Artists find an easier way to tour, increase exposure, and connect with their fans, bumping-up their chances of reaching their career goals; Fans get to engage with their favorite artists in their own town and collect rewards; and Matt Pearson runs his own business in an industry that he’s passionate about and in a capacity not possible through traditional channels.
As he stated in David Wolinsky’s interview:
You don’t have to deal directly with the record label. There’s no performing rights fees and all the royalties and stuff that are involved. I can completely avoid that with GigFunder, which was a huge plus because I don’t have the connections to the major labels I would need, and they don’t seem like they’re very easy to work with even if you do have those connections.
In the future, Matt’s goal is to present artists with funds and pre-sold tickets to venues. They can then use GigFunder as an auction system, where they bid on the artist.
One thing is certain, if GigFunder succeeds, it will rock the music industry boat and change the way music does business.
To read the full interview click GigFunder’s Matt Pearson on Idea Generation and Execution.
So, are you starting to see how you can turn your skills or passions into a great business idea? Share a few examples of how people you know have turned their skills into businesses in the comments section. Or list your skills for some business ideas suggestions.
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