Crowdsourcing has become a very popular way to contribute to a project of a startup. Flattr created developed a micro-donation based system that lets users donate to pages and content creators they appreciate.
Following the boom of crowdfunding, various types of platforms have developed alternative techniques for their users to collect and donate money to creative projects, promising teams or startups. Flattr adds a social dimension to traditional crowdfunding by allowing users to “Flattr” any web page, post or video online, and converting “Flattrs” into actual donations. Users can This micro-donation system is integrated with social networks – users “Flattr” a page exactly like they would “Like” it – and thus lets users give very sincere feedback to content creators. Since its creation in 2010, Flattr has agreed partnerships with several social media platforms, including Vimeo, Dailymotion, Twitter, Soundcloud and Flickr.
Micro-donations through social networks
Each month, users pick the total amount of money they are willing to donate for the following month. They can then “Flattr” content across the web and across social networks. It is exactly like “Liking” of “Favoriting” a piece of content, except that “Flattring” sends money to the content creator. Users are also free to browse the different categories of Flattr’s website. At the end of the month, Flattr counts all your “Flattrs” and devides evenly the initial amount of money you were willing to spend across all the content creators you “flattred.” For instance, if a user decided to spend $35 in March, and Flattred 10 Facebook pages, each of these will receive $7 – except that Flattr takes 10% off of the transactions. The only constraint is that recipients also need to be on Flattr in order to receive payment.
Turning the traditional “Like” into cash money
Flattr’s model has many advantages. First, users never spend more that what they intended, and don’t need to keep track of their donations. But mostly, Flattr adds real financial value to the traditional Facebook Like or Favorite – you think twice about it when make a donation. While the donations are usually symbolic more than any thing else, it still makes a difference in people’s minds. Co-founder Linus Olsson says that more than 1.5 million ‘Flattrs’ have been made since the platform was established. Users spend an average of €4.50 per month and the average Flattr is 50 eurocents.