Re:Mike Lee (Formerly of Tapulous) attempts to explain fundw...
by ram1024 on Saturday October 18, 2008 @01:37PM
(#336533)
the problem with this model, is that there's no value return for the people "funding".
a true investment delivers some sort of equity stake in return for investment. if say, you bought a fundware game, and got the next game free, that would be a valid fundware type argument.
here's how that would work. I need money to fund my endeavor, i release something with a slight entertainment value for more than its worth, with the guarantee that anyone who purchases it will get the product i'm developing with the money for free. sales happen and i reach the level of funding i need for the second product, i stop sales on initial product (make it free) and sell second product and let people who have "invested" receive their copies free of charge.
a true investment delivers some sort of equity stake in return for investment. if say, you bought a fundware game, and got the next game free, that would be a valid fundware type argument.
here's how that would work. I need money to fund my endeavor, i release something with a slight entertainment value for more than its worth, with the guarantee that anyone who purchases it will get the product i'm developing with the money for free. sales happen and i reach the level of funding i need for the second product, i stop sales on initial product (make it free) and sell second product and let people who have "invested" receive their copies free of charge.