It used to be if you asked, “What is crowdfunding?” very few people could tell you. But now crowdfunding (a.k.a., crowdsourcing) is becoming very well known. As the word is getting out about the possibilities and remarkable success of crowd funding, more and more crowdfunding sites are popping up.
Crowdfunding is a powerful new model for getting free money, and it is growing so fast, there are now lots of good crowdfunding sites. Each site tends to have its own focus … for example, Go Fund Me tends to be more charity focused where KickStarter tends to be more product and invention focused. But all of them are great ways to get free money or contribute to make unique ideas reality.
You can get money to create exciting new products … such as clothing, videos, books, movies, vehicles (bikes, cars, skates, etc.), anything you want … or for personal wants and needs … such as travel, school, medical, and so on.
But the flip side is crowdfunding is a great way to give money as well. You can contribute to other people’s ideas and dreams or use it for unique fundraising ideas.
Crowdfunding is a groundswell activity that is sweeping the country. One guy actually got $4.9 million to create a new travel jacket! And in late September 2015, there is a new program (called the Incredible Dream Machine) coming out that lets you turn crowdfunding into a business with regular and increasing income. You can learn more about it with a free crowdfunding ebook available here.
An Equity Crowdfunding Or Investment Crowdfunding Model
Equity crowdfunding allows you to raise up to $1 million by offering private investors a stake in your business. Equity investment is open to accredited investors now and will be available to unaccredited investors at a later date. With most individual investors pledging a small amount, raising up to $1 million through crowdfunding would likely require pledges from hundreds if not thousands of investors. The SEC requires companies to take reasonable steps to ensure that all investors are accredited. Current SEC rules forbid non accredited investors from investing in startups. The rules around a venture capital investment are usually a little more stringent, and there is a timeframe for the return on an investment in your company. But remember, there is no secondary market to sell your shares or crowdfunding investment.
A Site Where Creative Projects Raise Donation-based Funding
One of the most popular (and oldest) crowdfunding sites is Kickstarter. Each project page on Kickstarter is maintained by the creator or creators who set their own funding goal as well as project deadline. Kickstarter charges a 4% fee, but only if your money goal is reached (or exceeded). Rocket Hub charges 4% of the fund for successful project as well, but they charge 8% for projects ended without reaching the financial goal. Kickstarter is a site where creative projects raise donation-based funding. Project supporters are charged the amount pledged regardless of whether the project meets its funding goal or not.
Inventors And Small Business Owners With Product Ideas
Great post about what you should / could be doing to prepare your business now for crowdfunding down the road or for any type of financing for that matter. Even if you will not seek crowdfunding, creating a buzz about your business is the only sure fire way to grow that business. You need an idea for a US-based business, whether you are an experienced entrepreneur or just starting out. You need to join one or more crowdfunding sites to start tapping into the power of supporters-powered business funding.
A Leading Global Equity Crowdfunding Platform
Funded Justice is a crowdfunding platform which helps people raise money online for their legal fees for any type of legal action. In order to ensure you can stand out in the crowd, you have to gather one. The free crowdfunding ebook mentioned above provides more insight into how you can do that.
People Seeking To Raise Money For A Project
GoFundMe is by far the most popular fundraising site for charitable purposes. One guy got $9225 to cover medical bills for his pet dog … a bichon frise … that was attacked by coyotes. A 49-acre animal learning center called Hummingbird Farms got $33,244 (so far) to pay off the mortgage on their land. The possibilities are endless.
More Crowdfunding Site Options
The real estate market is one area where crowdfunding efforts are taking off as well. Make your own movie for the Sundance festival. Get funding for research for grad school or anything you just want to explore that may have a positive impact for society.
A Successful Crowdfunding Campaign
A successful crowdfunding campaign can be the first stage of a publicity campaign for your project as well. You can attempt to get funding for an idea as the first gate to verify there is a market for your idea. You can also use a crowdfunding campaign to get visibility and to create a buzz about your project. Then you can use crowdfunding to get your new product manufactured and start a business.
Front Page Public Relations (PR) offers crowdfunding consulting and crowdfunding PR campaign packages as effective methods of Internet marketing as well. A successful crowdfunding campaign is about a lot more than simply getting the money you need to move a project forward. One basic requirement for every crowdfunding campaign is to set up some perks for your contributors. You are likely going to have to do the same thing to be able to obtain crowdfunding success.
The Top Global Crowdfunding Sites
Pubslush is a reward based crowdfunding platform focused on the publishing industry. Crowdfunding promises to disrupt the financial industry …in the same way ebooks upset traditional publishing and online news sites upset the old fashioned newspaper. A new platform supported by Azerbaijan Youth Foundation aims at providing a channel to crowdfunding for cultural projects. Most crowdfunded projects, whether technology-focused or related to the arts, involve intellectual property.
Crowdfunding is a wild new frontier that is catching on like wildfire! … You can support it as a contributor, use it to explore a new idea of to help you in personal situations, or you can learn how to use crowdfunding to create a monstrous income. Get this free ebook called “Kick Start It!” to learn all about crowd funding, and if you want to be notified when the new program that lets you turn crowdfunding into a huge business opportunity, then sign up for the free Online Marketing Strategies digital magazine while you’re there.