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In our world, everyone has the opportunity to open their own business. But many are stopped by the question of funding. Even with a great win-win idea, you might not find understanding among investors. In such a situation, crowdfunding comes to the rescue. The Internet helped this unusual and interesting phenomenon take place.

Crowdfunding is a collaboration of ordinary people who, through the worldwide network, collect money or resources to implement their ideas. This is how interesting startups are born, funds are raised to help the victims.

The organizer of the project announces its purpose, the required amount, and then everyone begins to contribute funds. Musicians and filmmakers are especially different in terms of such fundraising - fans are happy to give money for a new, non-profit project.

Even politicians do not disdain crowdfunding - in 2008, Barack Obama raised more than $ 270 million from two million people. In 2012, more than $ 3 billion was raised through crowdfunding around the world. And this figure is clearly not the limit.

I must say that such an investment program is unusual for a familiar business, but is it any wonder that the Internet is pushing the boundaries? But crowdfunding is not clear to everyone, it is surrounded by several myths that interfere with the perception of this phenomenon.

Crowdfunding is common begging that simply works over the Internet. Literally the word itself means “crowd funding”. So a begging person can be considered engaged in this type of receiving funds. In fact, there is a clear line between the beggar, the charitable foundation and the crowdfunding project. In the latter case, money is given not for the sake of calming the conscience and obtaining moral satisfaction, but for the implementation of a very specific idea. Someone wants to continue their favorite series, someone wants to see a new miracle gadget. Some projects implement ideas that bring little material. So, crowdfunding can raise funds for an archaeological expedition. So by some indications it may have something in common with begging or with the activities of a foundation, but when taken together they give a unique picture.

Crowdfunding requires start-up capital. The main advantage of this method lies in the fact that you can start making money only on sheer enthusiasm. Well, you can't do without an idea. All that remains is to use your skills on the Internet. True, the funds spent at least on advertising and promoting the project will increase the chances of success.

Crowdfunding doesn't work. This myth emerged from the fact that there are many contributors who never saw the completion of their projects. Although the very fact that crowdfunding attracts billions of dollars into business looks eloquent. Skeptics just need to surf the Internet and see that the program works for those who understand its essence. Today there are more than 500 crowdfunding platforms, some of them imply a return on investment like on Kickstarter, while others are donations or built on the basis of lending. Depending on the type of investor that is required and the type of project being launched, it is also necessary to choose a platform for crowdfunding. You just need to understand what obligations the startup author undertakes, how attention will be drawn to the project, this will help to achieve success in the end.

Crowdfunding is everywhere already. There is one feature that differentiates modern crowdfunding from traditional charitable donations. In the first case, some kind of incentive is still implied to attract a participant. Some perfectly sensible projects simply do not involve enough human participation in the crowdfunding process. If you try to launch a project that promises a reward but fails to attract attention to it, the campaign will fail. There are always good ideas that, in principle, cannot participate in this type of investment, simply because they are not interesting or have similar analogues. Often a reward is offered to a finished product that needs a final push to launch. The best example is the project "OUYA" - a video game console born by Kickstarter and raised $ 9 million. Those who got acquainted with the prototype of the device contributed this money. Of all the types of "popular" investment (lending, rewards, donations, donations), crowdfunding is the largest and fastest growing.

Student crowdfunding projects fail. Many people think that student crowdfunding projects are not viable. But what about the success stories and individual initiatives that this form of investment has brought about? Hundreds of millions of dollars are awarded annually in scholarships and grants for students, many of which come from donors who will never see the young talent they support. There are crowdfunding sites that are tailored specifically for education systems. So, helps both parties meet face to face and establish personal contact. This makes crowdfunding a viable option for many students. Implementing student projects through crowdfunding is a rather complex issue, but with the help of special sites there is an opportunity to try it out.

You just need to register on the site and start receiving funds. From the fact that your ad appears on the site, money will not flow by itself. There have been isolated cases in history when a story became a "virus" and inspired millions of donors. But this is by no means a rule, but an exception. First of all, the project needs a marketing plan, it is necessary to clearly understand how it will be launched and promoted. Investors also need this information, only then will they be able to share their funds.

Social connections don't matter. There is a persistent opinion that millions of charitable donors have nothing to do on the Internet, allocating money to the first in need. This myth is reinforced by advertisements for crowdfunding sites that advertise their community supporting projects. In fact, this is not at all the case, people do not sit on sites, waiting for someone to give their money to. About 70% of contributions will come from the personal social circle, so a plan is needed how to form it. We need to think about how to start building momentum as quickly as possible, monitoring development and demonstrating progress. It is necessary to find those who can tell about the project, draw attention to it. People love to follow others, if they see that many are contributing, then there will be a desire to match the general impulse. But that won't happen by itself. We need to think over everything, creating an appropriate information background to attract people.

Just a good idea is enough. Having a project is not enough to just be passionate about it and consider it special. We need to think of it as a showcase. People must be attracted to something so that they agree to give their money. A factor influencing this is the detailed description of the project. Do not hesitate to take photos of him, shoot videos. Why not tell the camera what exactly you do? This will form a personal bond. Keep the story clear, thoughtful and concise, with enough detail. This can make people want to become complicit in something interesting. Together, this will help build confidence in the campaign, attract even unexpected investors to it.

There is no need to use a crowdfunding platform, you can simply place a "Donate" button on your page. When raising funds through crowdfunding, you need to communicate and have a connection with people. The donation button page does not suggest this. With crowdfunding, you need to go beyond the usual deal to build a compelling website using the platform's built-in tools. This will help attract more people and raise funds. A crowdfunding site can help track progress, show other people's involvement, and get investors to join a popular project.

Crowdfunding platforms will give you an audience of critics, but not buyers. There is an unwritten rule that crowdfunding should involve an already established community of people who are close and loyal to the product. Experienced entrepreneurs say that crowdfunding often does not attract new people to a project, but awakens an existing audience. There are many examples of Kickstarter investors giving money out of their interest in existing topics. Religious computer programs and feature films based on their favorite TV series became popular. If you already have experience of conducting a campaign on such a site, you can take advantage of its fruits. This happened with the project Hidden Radio 2, which did not have the ore to attract an already proven audience. This is of great importance for crowdfunding. It should be understood that the potential audience in crowdfunding is already most often familiar with this method of investing funds. The statistics of any project on Kickstarter is eloquent - most of the sponsors have already managed to be noted in supporting other campaigns. So this is precisely what crowdfunding platforms are for.

Placing a project on Kickstarter guarantees its uniqueness. Crowdfunding allows you to draw attention to the product, expand your potential audience. But interest in this platform is constantly increasing, more than 147 thousand projects have already been launched on the same Kickstarter. It's already quite difficult to stand out in such a variety. As already mentioned, it is important to draw attention to yourself here. This is more and more difficult to implement, the more and more articles appear about a decrease in interest in crowdfunding, scammers appear. If a few years ago it was enough to tell journalists about a unique project and grab their portion of fame, now they need a living sample that can be held in their hands, tested, and therefore already write about it. This suggests that being unique by the mere fact of joining crowdfunding is not easy.

For a crowdfunding campaign, a snack for the team and a cheap camera are enough. Some believe that the very fact of placing a project on a crowdfunding platform will raise hundreds of thousands of dollars in a matter of minutes. In reality, those projects that were “lucky” invested heavily in advertising. Big budgets were behind them - operators were hired, videos were created, PR agents were working, information was disseminated over the Internet. Some projects found investors, in fact, even before the appearance on the crowdfunding platform. And primary research, prototyping requires a lot of investment. There are stories on Kickstarter about how serious investors came to people without investment. However, this is just an exception, only to prove the rule.

Crowdfunding does not provide reward for investors. A bonus system is often used, which allows each investor to issue a reward, albeit a symbolic one. Let it be a diploma of a project participant, a postcard, it's still nice. And if we are talking about raising funds for a movie, then the investor may even be offered to play a role in the crowd scene. For a fan, it will be for happiness! What bonus to give out depends on the organizers of the project and its focus.

On Kickstarter, only high-tech projects are allowed. Of all the many directions presented here, this is only the fifth most popular. People are more often interested in music, cinema, computer games and industrial design.

High attendance at Kickstarter works wonders. To attract really serious investors, you need to bring the project to the TOP. And for this we need efforts in the field of PR and advertising, participation in public life and social networks.

Crowdfunding is purely about fundraising. Participation in such a platform is justified, even if earnings are not in the first place. The project can gain fans and become known to a wider audience. At some stage, this is also important.

The idea may not be accepted. Many platforms have a selection process, which is pretty tough on Kickstarter. But this rule does not apply to everyone. It is quite possible to find an untreated crowdfunding site that will gladly accept any ideas.

Watch the video: RealtyMogul Review. Best Crowdfunded Real Estate Platform 2020? (July 2022).


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