Towards the end of last week Google introduced for YouTube in the USA, Mexico, Japan and Australia their new “tip jar” on a beta basis. It basically enables fans of video channels to tip/fund videos with between $1 and $500 we believe.
It doesn’t need to be a music video so effectively “fan funding” is a form of crowdfunding which, we thought, infoDev (a global innovation and entrepreneurship program in The World Bank Group) defined rather appropriately as “ … an Internet-enabled way for businesses or other organizations to raise money.”
They also produced a handy little graphic which puts crowdfunding into the overall funding cycle.
YouTube hope to extend fan funding to “ … more countries soon.“
If you have a channel (in the beta test countries) and are “… interested in testing this out on your channel, please sign up and we’ll be in touch soon. Unfortunately we have limited spaces available – so we can’t guarantee a place as a tester – but we’ll do our best.”
We think it’s a great idea for, in particular, idea inception project testing and promotion.
Sources: Seeking Alpha, YouTube, InfoDev