Crowdfunding: So Mainstream That Even the Porn Industry is Using It

April 30, 2019

It is no secret that pornography has become a billion dollar industry that has a powerful effect on the US economy. But still, the industry continues to struggle with adequate funding channels. Pornhub web traffic accounts for such a large portion of global traffic, that it has become a reliable source used to understand consumer behavior, trends and culture. Still yet, many viable startups in the porn industry struggle to secure funding; even with self-sustaining business models that contribute largely to the global economy, like Cindy Gallop’s makelovenotporn.

Porn’s funding problem

For years the ‘sin’ industries like alcohol, tobacco and gambling have struggled with securing capital on two fronts: customer wariness and lender nervousness. People are leery of putting their credit card numbers directly onto an adult website and PayPal has long refused to process payments for the porn industry. This is why many adult content creators have turned to crowdfunding to sustain their work.

Using a crowdfunding platform like Indiegogo for transactions, adds legitimacy and trust, which widens the pool of people willing to contribute. Crowdfunding on secure platforms makes it easier for people to feel comfortable supporting industries like porn. In marketing terms, it removes a huge barrier to entry.

Community crowdfunding: shared values and serving niche customers

The crowdfunding avenue has worked successfully because of motivated and loyal fan bases who are willing to pay for porn that matters to them. And, at the same time, they can see how their contributions fund work that shares their values. Actually, it’s quite similar to the traditional way the arts have supported themselves. For example, many LGBT communities are underserved in mainstream adult entertainment, so money collected through crowdfunding pays entertainers, funds new projects and gives consumers the services they want.

In fact, some consumers said they felt connected with their favorite content creators, because crowdfunding platforms ‘felt more intimate and direct’ than a random company.

Read how crowdfunding boosts inner cities and local economies

Read how crowdfunding is a secret job creator

Read how crowdfunding increases inclusivity

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