Local businesses, bands, movies and bars alike are now being financed by crowdfunding campaigns. Once viewed as little more than a fad in the funding world, using a network of people to back a project is bringing real money to the table.

Take Rare Bird Brewpub as but one local example: the new craft brewery and taproom opening soon on Lake Street in Traverse City raised $18,755 in 45 days on crowdfunding site Indiegogo. Its goal was $15,000 to make final purchases including furniture, kitchenware, kegs and ingredients to brew its first batches of beer.

“Crowdfunding brings the power of online social networks to capital markets,” says Andy Wolber, an independent technology consultant who has conducted crowdfunding workshops for NorthSky Nonprofit Network in Traverse City.

Whether Indiegogo or Kickstarter or Rocket Hub, these and other crowdfunding sites are working for local business owners and entrepreneurs. Other recent crowdfunding successes include:

Local musician May Erlewine’s new album: $10,500 goal, raised $13,969.

Division, a feature-length Instagram film: $25,000 goal, raised $25,050

Hybra Sound Technology’s new Sound Band: $175,000 goal; raised $547,125 (nearly 4,000 backers)

Of course, with successes there are also failures. Local writer Kathleen Stocking’s campaign to raise funds to publish a book of essays was not a success, with just $730 pledged toward $20,000 goal.

What makes a crowdfunding campaign soar in some cases, and fall flat in others?

There are clearly some factors that weigh into success: the amount of the campaign ($5,000 easier than $15,000) and some already built-in support from the home community.

There are also some other commonalities that work in a campaign’s favor, according to Chris Wendel, a commercial lender with Northern Initiatives, which offers numerous lending programs for business owners and entrepreneurs in northern Michigan.

First, a human/altruistic element does appeal to some potential backers, says Wendel. Second – and perhaps more important – is an online infrastructure (social media and other online presence) that allows for “spider-webbing” out to other groups of like-minded people.

Heather Fortin agrees: “What it comes down to is the network.”

Fortin is the program director for the MidMichigan Innovation Center in northern Michigan and has worked with several area entrepreneurs on crowdfunding campaigns.

“The person needing to raise money must not be afraid to share the project with their entire network,” said Fortin. “They must compel the network to help them get exposure for the campaign.”

The campaigns, in turn, reward their backers – and that ranges from a simple “thank you” or a bumper sticker to a day spent brewing beer, capped off with a private party (in Rare Bird’s case). In all cases, pledges are just that until the campaign reaches the goal – then the money comes out of backers’ pockets.

Other keys to campaign success, Fortin says, include: a good story of why a “funder” should want to support the campaign, great perks, a realistic expectation of the financial goal, good video and great photos.

Still, Wendel says, if someone told him a year ago that crowdfunding would have a legitimate seat at the table when it comes to business financing, he never would have believed it.

“That’s been a shift for me,” he says. “It is sharing the stage … it’s legitimate in financial circles. It lends credibility to projects and is also a great test market.”

Crowdfunding is also gaining more credibility in the legislative realm. Just last week the Michigan legislature passed HB 4996, commonly known as the “crowdfunding legislation,” after first being introduced in September. It allows the sales of securities to an unlimited number of non-accredited investors, giving any Michigan resident the opportunity to support their local entrepreneurs, existing small businesses and real estate investments.