So, what is crowdfunding? Well, most of the definition is in the term itself. Crowdfunding is a way of raising “funds” for a project or cause, through contributions from a “crowd” of people. It’s a way to make new ideas a reality when the necessary finances are not readily available. This way, businesses and solo entrepreneurs alike can reach out to the community for monetary support to make otherwise unobtainable goals achievable.
The “crowd” is usually composed of anyone interested in seeing your project meet its goal. These can be friends, family members, or even serious investors. Backers, as they’re called, can contribute as much or as little money as they want into your campaign. Reaching this sort of crowd might sound difficult, however, depending on the ambitiousness of your project. You might require hundreds or thousands of supporters to meet your goal.
Thankfully, the internet has made gathering your crowd of supporters easier than ever. With websites like Indiegogo, Kickstarter, GoFundMe, and many others, individuals can propose their projects directly to the public. The very goal of these websites is to create a center for crowdfunding projects to go live, serving as platforms for various campaigns. On these websites, people are able to see your cause, and they can decide whether or not they wish to be a part of it. They help you make your project a reality by contributing money, in the hopes that their investment will result in the success of your mission — and, often times, in exchange for perks.
On many crowdfunding websites, project owners can establish a list of perks that correspond to certain donation amounts. A perk can be anything from a handwritten thank you letter to a discounted offer on the campaign’s product. Some campaigners will even fly their most generous donors out to their headquarters to play a role in the development of their product — this is common for many artistic projects. The band “I Fight Dragons” is an excellent example of setting fun, creative perks to bring in their audience. They set something fun for nearly every price bracket, giving their audience a number of options.
The beauty of modern crowdfunding is that your campaign is instantly exposed to an enormous group of people who, if they’re visiting these sites, already know what they’re looking for – interesting new projects that they can invest in. Create a compelling video about your project or cause, write a concise summary of what you’re about, and set a reasonable goal. With that, you’ve started a journey toward making your dream a reality.
What are your thoughts? Do you have an idea you’re trying to crowdfund? Let us know so we can help! Happy crowdfunding!