In our world, everyone has the opportunity to open their own business. But many people are stopped by the question of financing. Even with an excellent win-win idea, investors can not be understood. In this situation, crowdsunding comes to the rescue. The Internet helped to take place this unusual and interesting phenomenon.
Kraudfanding is the cooperation of ordinary people, who through the worldwide network collect money or resources for the realization of their ideas. So interesting startups are born, money is collected to help the victims.
The organizer of the project announces its purpose, the necessary amount and further all those who want to start making money. Particularly different in terms of such fundraising, musicians and filmmakers – fans are happy to give money for the implementation of a new, non-commercial project.
Do not disdain crowdship even politicians – in 2008 Barack Obama collected more than 270 million dollars from two million people. In 2012, with the help of crowdfinding around the world, more than $ 3 billion was raised. And this figure is clearly not the ultimate.
I must say that such an investment program is unusual for the usual business, but is it any wonder that the Internet expands its borders? But crowdfanding is not understandable to all, it is surrounded by several myths that interfere with the perception of this phenomenon.
Kraudfanding is a common begging, simply acting through the Internet.
Word literally means “crowd financing”. So, a person who is being assassinated can be considered dealing with this type of receiving funds. In fact, there is a clear boundary between a beggar, a charitable foundation and a crowdaming project. In the latter case, money is given not for the sake of consolation and moral satisfaction, but for the realization of a very concrete idea. Someone wants to continue the favorite series, someone wants to see a new miracle gadget. Some projects realize 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 the foundation, but the features collected together give a unique picture.
For kraudfandinga need seed money.
The main advantage of this method is that you can start earning money only on bare enthusiasm. Well, without the idea can not do. It remains only to use your skills on the Internet. True, spent at least on advertising and promotion of the project means, will increase the chances of success.
Kraudfanding does not work.
This myth appeared on the basis of the fact that there are many investors who did not see the completion of their projects. Although eloquent is the fact that crowdfanding attracts billions of dollars in business. Skeptics should just wander the Internet and see that the program works for those who understand its essence. To date, there are more than 500 platforms for crowd-hosting, some of them imply a return on investment, as in Kickstarter, while others are donations or are built on credit. Depending on the type of investor that is required, and the type of project to be launched, you must also choose a site for crowd-hosting. You just need to understand what the author of the startup undertakes, how attention will be drawn to the project, and this will help to achieve success in the end.
Kraudfanding is already everywhere.
There is one feature that distinguishes contemporary crowdfunding from traditional donations based on charitable actions. In the first case, there is still some incentive to attract a participant. Some perfectly reasonable projects simply do not provide for sufficient participation of people in croweding. If you try to run a project that promises rewards, but you can not attract attention to it, then the campaign will fail.There are always good ideas that in principle can not participate in this kind of investment, simply because they are uninteresting or have similar analogues. Often the reward is offered to the finished product, which needs the final push to launch. The best example is the project “OUYA” – a game console, born by Kickstarter and collected a sum of $ 9 million. This money was brought by those who got acquainted with the prototype device. Of all the varieties of “people’s” investment (lending, rewards, donations, donations), crowdfunding is the largest and fastest growing.
Student projects in croweding are failing.
Many people think that student projects at crowds are not viable. But what about the success stories and individual initiatives that took place thanks to this form of investment? Annually hundreds of millions of dollars are awarded in the form of scholarships and grants for students, many of them come from donors who will never see the young talents they support. There are crowdaging sites that are designed specifically for education systems. So, pigit.com helps to come face to face with both sides, establish personal contact. This makes crowdfunding a viable option for many students. Implementing student projects using crowd-hosting is a rather complex issue, but with the help of special sites there is an opportunity to try to do it.
You just need to register on the site and start receiving funds.
The fact that the site will be your ad, the money will not flow a river. In history there were isolated cases when a certain story became a “virus” and inspired millions of donors. But this is by no means the rule, but the exception. The project needs primarily a marketing plan, it is necessary to clearly imagine how it will be launched, promoted. This information is needed and investors, only then they will be able to share their funds.
Social connections do not matter.
There is a strong opinion that millions of charity donors have nothing to do on the Internet, allocating money to the first needy. This myth is supported by the advertisement of crowd-hosting sites that advertise their community supporting projects. In fact, it’s not like that, people do not sit on websites, waiting for someone to give their money. About 70% of contributions will come from a personal social circle, so a plan is needed, how to form it. We need to think about how to start quickly to increase our turnover, monitor development and demonstrate progress. It is necessary to find those who can tell about the project, draw attention to it. People like to follow others, if they see that many make contributions, then there will be a desire to match the general impulse. But this in itself will not happen. We should think about everything properly, having formed the appropriate information background for attracting people.
Just a good idea.
Having a project is not enough to be just keen on it and consider it special. We must think of him as a showcase. People must attract something, so that they agree to give their money. The factor that influences this is the detailed description of the project. Do not hesitate to make photos about him, shoot a video. Why not tell the camera what exactly you are doing? This will form a personal connection. The story should be clear, thoughtful and concise, with enough details. So you can make people want to become accomplices in something interesting. All this together will create trust in the campaign, attract even unexpected investors to it.
There is no need to use the platform for crowdfinding, you can simply put the “Donate” button on your page.
When raising funds through crowdfunding with people you need to communicate and have a connection. A page with a donation button does not imply this.With crowdfunding, you need to go beyond the usual deal to create a convincing site with the built-in platform tools. This will help attract more people and raise funds. Kraudfandingovy site will help to track success, show the participation of other people and make investors join the popular project.
кра Crawfunding platforms will give you an audience of critics, but not buyers.
There is an unwritten rule that crowdsfunding should involve an established community of people close and loyal to the product. Experienced entrepreneurs say that croweding is more often than not attracting new people to the project, but awakens an already existing audience. There are many examples of how at Kickstarter investors gave money at the expense of their interest in existing topics. Popular became religious computer programs, full-length films based on favorite TV series. If you already have experience of holding a campaign on this site, you can take advantage of its fruits. This happened with the project Hidden Radio 2, which did not make up the ore to attract an already audited audience. For croweding is very important. It is worthwhile to understand that the potential audience in crowdfunding is already more often familiar with this way of investing funds. The statistics of any project at Kickstarter are eloquent – most of the sponsors have already managed to get noticed in supporting other campaigns. So that’s exactly why crowdging platforms are valuable.
If the project is placed on the Kickstarter, it guarantees its uniqueness.
Kraudfanding allows you to draw attention to the product, expand the potential audience. But interest in this platform is constantly increasing, on the same Kikstarter launched more than 147 thousand projects. In such a variety it’s already quite difficult to stand out. As already said, it is important to attract attention. This is more difficult to implement, the more often there are articles about a decrease in interest in croweding, there are scammers. If several years ago a unique project was enough to tell journalists and snatch their portion of glory, now they need a living model that can be held in hands, tested, and therefore already write about it. It says that it’s not easy to be unique at the expense of the mere fact of joining crowds.
For kraudfandingovoy campaign enough snacks for the team, and a cheap camera.
Some believe that the mere fact of placing the project on a crowdaming platform will allow you to collect hundreds of thousands of dollars in a matter of minutes. In reality, those projects that were “lucky” were heavily invested in advertising. Behind them stood large budgets – hired operators, created videos, worked as PR agents, information was distributed over the Internet. Some projects found investors in fact before the emergence on the platform of crowdfinding. Yes, and primary research, the creation of a prototype requires considerable investment. Kickstarter has stories of how serious investors came to people without investments. However, this is just an exception, only proving the rule.
Kraudfanding does not provide incentives for investors.
A system of bonuses is often used, which allows each investor to give out a symbolic, but reward. Let it be a project participant’s diploma, a postcard, it’s still nice, after all. And if it is a question of collecting funds for a movie, then the investor can even offer a role in the crowd. The fan will be for happiness! What bonus to give out depends on the organizers of the project and its direction.
At Kickstarter, only high-tech projects.
Of all the numerous directions presented here, this is only the fifth most popular. People are more interested in music, cinema, computer games and industrial design.
The big attendance at Kickstarter works wonders.
To attract serious investors, it is necessary to bring the project to the TOP.And this requires efforts in the field of PR and advertising, participation in social life and social networks.
Kraudfanding is only a search for means.
Participation in such a platform is justified, even if earnings do not come first. The project can find fans and become known to a wider audience. At some point this is also important.
The idea may not be accepted.
Many platforms have a selection process, at Kickstarter it’s pretty tough. But this rule does not apply to everyone. It is quite possible to find an untapped croud-hosting site, which will gladly accept any ideas.