Updated April 20, 2023
Introduction to Crowdfunding
Large groups of people are not generally considered to be a good thing. This is because crowds imply something negative, and that is why many people tend to avoid them altogether. Further, when a third party talks about a crowd, the collective mentality of the same is reduced substantially; sometimes, this can also be dangerous. This is something that has existed for a long time, and this is what was depicted by Charles Mackay in his book Extraordinary Popular Delusions and Madness of Crowds. This book focused on economic bubbles and mass movements where the fear of a crowd in a mob would drive people to act in antisocial and scary ways.
So whatever the reason, many organizations, companies, and society, on the whole, very vary in crowds, and that is why there are many theories about how best to avoid them. There are no ways in which anyone can take benefit from large crowds. However, in recent years, crowds have been getting a lot of attention and are being studied for their effects and roles in a comprehensive manner. While earlier, there was a limited understanding of the manner in which crowds function, now we have evolved in our understanding of crowds and how they can help us fulfill their goals and objectives. Many companies, like Amazon’s Mechanical Turk, used the power of the crowd to perform difficult and lengthy tasks, enabling them to perform tasks faster and more effectively.
But before that, this is eventually that started the process of crowdfunding, where companies began to outsource their creative projects to people who would be stakeholders of the said projects. Since its inception, a lot of crowdfunding platforms have cropped up and have also gained a lot of popularity as well. On these websites, users can establish a project, set up a pitch, and establish a funding goal, thereby allowing people to donate money to the said idea, either through associated rewards or through a philanthropic manner. By combining these projects on social media platforms, companies can easily allow users to track not just their own projects but their friends as well. In addition, popularity on social media means that crowdfunding platforms have a chance to go viral and expand their reach limitlessly. This would have changed the future of crowdfunding as when combined with the power of social media, the opportunities are endless for brands and organizations.
Discover the origin and growth of crowdfunding
The growth of the crowdfunding industry began in a very curious manner. Crowdfunding began in three different areas or incidents. The first incident occurred in 1997 when the US Marillion tour took place. This tour was entirely funded by fans who raised more than sixty thousand dollars, money that did not require any work from the band members themselves. The second incident occurred when a Nine Inch Nails album called Ghosts I-IV was given away to fans, and this was done entirely through crowdfunding. The third incident revolved around ArtistShare, which was a crowdfunding site that was established with the aim of helping artists to establish their careers by paying for their albums. The first project created on this platform even won the Grammy Awards, and many artists won nominations after that incident.
A vast majority of crowdfunding platforms are based on entertainment models, mainly due to two major reasons. This is because, firstly, traditional funding methods for arts and humanities are being reduced in a drastic manner. Other areas of science and engineering enjoy a lot of funding compared to creative fields. The second reason is that deliverables in the field of creativity are easy to evaluate, and therefore, they are perfect for crowdfunding platforms as well.
Today, creativity and its related platforms require heavy investments, and with banks and investment organization reducing their inputs in terms of finances, crowdfunding has become an extremely popular option. This means that multiple crowdfunding platforms are available in the market today, supporting projects of almost all types and kinds. While ArtistShare helps musicians to realize their goals in the music industry, Fundageek helps innovators to realize their technical and scientific ambitions in a systematic manner. Other platforms like Fundable helps start-up business to establish strong roots, while GoFundMe helps people to realize their health goals. Mobcaster is another platform that produces television pilots, and Weave is a platform that embraces the aspirations of non-profit organizations.
Some Major Crowdfunding Sites
Here are some of the major crowdfunding sites that can help creative people to achieve their dreams and ambitions in a successful way:
One of the most popular and common crowdfunding sites on the web is, Kickstarter has successfully raised more than two hundred million dollars for more than sixty-one thousand projects. Many people are available who want to invest their money in creative projects highlighted on this platform. According to the website, this platform provides investment for creative projects but does not allow people to raise money for awareness campaigns, scholarship needs, or personal gains. For people to put their projects on this platform, all you have to do is fill out a straightforward form with all the required details. It is better to fill in all the aspects of the project intimately because they are evaluated at every stage. Further, this platform takes a five percent payment for every successful project completion. The only drawback is that people who use this platform need to have a social security membership and therefore need to be permanent citizens of the United States of America.
This platform was so successful because it had a snowball effect in the form of World of Warcraft, which became a very popular game on social media, thanks to the investments gained through this platform. Kickstarter does not allow users to profit or gain a share of the project they want to fund. With so many people participating in this platform, it is possible that many startup companies are looking at this type of investment rather than investment companies. Some of the biggest success stories made a reality through Kickstarter are from technology and games.
Short for independence, Indiegogo is another crowdfunding site that allows people to raise funds and fulfill their personal dreams without much of a problem. Having a similar layout to Kickstarter, this is a relatively easy platform, especially if you have used the Kickstarter platform. In addition, this platform also allows users to raise money for charity projects as well. People using this platform can gain investments not necessarily restricted to the US region. Through Flexible funding, users can receive their funds even if they do not reach their eventual goal. However, Indiegogo charges a higher fee in the case of that situation.
A very popular platform, RocketHub, is another way to fulfill your dream projects. With a simple three-step process, users can fill in all the details of their project and track it in an effective manner. While users can use the FuelPad for crowdfunding, RocketHub’s biggest and most effective feature is the Launchpad. Launchpad on RocketHub helps users collaborate with top brands to create awareness for their projects. The platform charges nearly 4% of the project in case of successful completion and doubles if the goal still needs to be met. There is also a credit card processing fee charge that is incurred during the entire process.
Another crowdfunding site, GoFundMe, is another way individuals can raise money online for various purposes, including donations for personal campaigns and even money for personal uses like the traveling fee for medication for a pet. The platform is, in short, a dream way through which people can raise money for all their projects and ambitions. A special feature of this platform is that a variety of widgets allow users to share their projects and ambitions on social media platforms, thereby increasing reach and awareness effectively.
Razoo platform claims to have raised thousands of dollars for various projects and mainly concentrates on causes rather than profitable projects. That being said, this platform has a non-profit fundraising section as well. Appbackr allows individuals and companies to build and seek donations for their mobile apps. With categories for foundations, individuals, corporations, and non-profits, it has impressive technological backing and tools like Facebook widgets to reach a diverse audience.
Mobile phones have evaded almost every aspect of human life. Customers in the world today are on the move, and that is why mobile applications are increasing in importance. Therefore, investing in mobile apps is extremely important from the business point of view for both small and large organizations. “Appbackr helps companies build and fund mobile apps, as apps will soon replace websites, offering better growth and customer relationships.” The app tracker is ideal for individuals looking to launch their perfect app and reach customers, clients, and stakeholders.
Crowdfunding is, therefore, one of the biggest advancements in the marketing field, and that is why marketers might want to look at this medium as they looked at social media almost a decade ago. Without a doubt, social media, along with digital media platforms like Facebook, Twitter, and Instagram, are a potent mix, and it is best to invest in this medium while the opportunities are still vast and ripe. Crowdfunding combines philanthropy and entrepreneurship, allowing people to realize their dreams with proper financial backing, and innovate without worrying about finances, enabling them to focus on what matters.
Crowdfunding is a powerful tool for companies to build relationships, fund big ideas, and give back to society. Understanding the platform’s terms and conditions is important to ensure success.
Crowdfunding sites offer a great opportunity for individuals with creative ideas to fulfill their dreams. However, it’s important to carefully review the terms and conditions before using the platform to ensure success. Each platform has its own set of rewards, perks, benefits, and conditions. Understanding this will go a long way in helping you to recognize your aspirations without any unwanted setbacks.
It is also important to market your project; this is something that you will need to work on continuously. Persistence is key when convincing people to fund your idea. Use social media campaigns like Facebook or unique YouTube videos to kickstart your marketing campaign.