During the last several months, I have been spending a lot of time writing about next year’s biggest marketing opportunity. My book, Equity Crowdfunding: Transforming Customers into Loyal Owners is based on the premise that the power of social networks combined with the passion of business ownership will provide local companies with a way to accelerate their growth.
I’ve come a long way in my thinking about the impact on equity crowdfunding. At first, I was in agreement with the vast number of people who thought that the provisions of a federal law called The JOBS (Jumpstart our Business Startups) Act were just designed for startups. Like many, I thought that equity crowdfunding was a limited way for startups receive money and validation of their ideas by posting projects online.
But now, it is clear to me that a local small business can turn their customers into something much more than a Facebook “Like” or favorable Yelp review. Instead, the customer could become an owner. And one thing we know about owners: they are evangelists. Owners will go out of their way to promote their own company. This will lead to more frequent business visits, and a much greater use of the social networks developed by each individual customer/owner. Ownership in a local business will serve as a virtual badge representing community involvement for each crowdfunder.
As I was writing the book, we launched our company called Cricca Funding. The company is a consultancy that works with profitable, established local businesses looking to raise up to $1 million online using crowdfunding. But while the law permits equity crowdfunding, the SEC still hasn’t published regulations that will make the law effective.
So why start this business and write the book?
Because I believe that this year is special. Forward-looking marketers will begin to realize the promise of equity crowdfunding. Besides the increasing amount of capital that will be raised for small businesses, the opportunity to transform customers will be extraordinary.
We also think that it is important to be involved as the SEC formulates the regulations that will impact crowdfunded companies. At the same time, we look forward to informing the business community while promoting the marketing impact of crowdfunding.
I would be remiss if I did not encourage you to purchase a copy of my book on Amazon. A link is right here: http://amzn.to/Yo08eY.
I appreciate you following this blog, and I look forward to making connections with those of you who share my vision for this exciting future.
Jonathan Frutkin is an attorney at The Frutkin Law Firm, PLC in Phoenix, AZ. He’s written a new book called “Equity Crowdfunding: Transforming Customers into Loyal Owners” which was published in May, 2013.