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Could you use some extra money to scale your online business? Do you want to test the marketplace demand for your physical product? If so, Kickstarter and Indiegogo are your tools and Zach Smith from Funded Today is your guide to raising capital for your business using crowdfunding.\n\n \tFunded Today\n \tCrowdfunding Success Matrix\n \tFunded Today Blog\n \tCrowdfunding Cashback Network\n\nDisplay TranscriptRobert Plank: Zach Smith is going to talk to us today about crowdsourcing. Now Zach is a serial entrepreneur, never having had a real job his entire life. He is always starting, selling, running, and managing businesses. Zach loves helping others turn their dreams, ideas, and inspirations into successful companies, and this passion lead to his creation of Funded Today LLC, which is America's most successful crowdfunding firm, and the largest provider of crowdfunding marketing services worldwide. I'm excited. Can we talk about it? So you guys strap yourselves in. Zach, how are things today?\n\nZach Smith: Doing real well. Thanks for having me on your show today, Robert.\n\nRobert Plank: Cool, I'm glad you're here, because this is a new topic that I don't know much about, but I've seen it kind of take off. I've seen it get popularity. So crowdfunding, what the heck is it?\n\nZach Smith: So crowdfunding is basically a way to raise money, that over the last few years has become extremely popular. There's a lot of different types of crowdfunding, but we'll just cut out all of that. The part of crowdfunding that we focusing on is called rewards-based crowdfunding, and that means that people essential preorder new ideas on sites like Kickstarter and Indiegogo. So let's say I've invented a cool new watch, and this watch does all kinds of fancy features. I might have a prototype of just one such watch. Well I film a video, I talk about this watch, I talk about how I want to bring it into mass production, and I tell people for $250 you can preorder this watch that I have on my wrist, and I'll make one for you just like the one I have here, and then people pay $250 to get this watch. There's no catches, there's no strings attached. You don't have to give up any equity in your business, and people do this to the tune of millions and millions of dollars. Funded Today, like you mentioned in your intro, has done that more so than anybody else in the world for thousands of different inventors now.\n\nRobert Plank: Awesome. So you're the guy to talk to. I've seen every now and then... Before the show started recording we were talking a little like, Indiegogo and Kickstarter, people have used that to bankroll movies and TV shows and stuff like that. Plus on the practical side, every now and then I'll see something. I'll see someone will invent a camera that allows them to talk to their pets and dispense pet food remotely.\n\nZach Smith: I saw that one, yeah.\n\nRobert Plank: Yeah, that's the most... That's the one that comes to mind the most when I think of crowdfunding and Kickstarter type of stuff, but it's also practical enough, something like a multimillion dollar movie and stuff like that. Using the watch example, someone says "I'm going to design the watch." So what are the steps then? I guess they sign up for a site like Kickstarter, they make a webpage. I guess maybe they can make a prototype or a graphic, and then people can preorder the watch. So the thing that I was curious about as you were explaining it, let's say that you, Zach Smith, say you can preorder this watch for $200. I preorder the watch and then what happens, because I've seen some of these say we need a hundred backers or something like that. What happens if they don't get adequate funding for that project?\n\nZach Smith: Yeah, great question. As an entrepreneur, you want to know how much it's going to cost you to build this watch, so let's say that your MOQ, your minimum order quantity, is 1000 watches. You've talked to manufacturers, you've talked to suppliers,