Crowdfunding is one of the most powerful ways to get money that you need when you don’t have the credit or the resources for your project. We talk about the pros and cons.
Regardless of whether you’re an engineer or an artist, the advantages of crowdfunding are well known. It’s an “easy” way to work with your audience and beyond to get funding for a cause or project that you are passionate about.
There are a range of projects that have been funded from crowdfunding from every niche and industry around the world. Passion projects such as off kilter films and plays have been created from their fan base with a quick fundraising project. Charity organizations use crowdfunding to sponsor initiatives and trips. Musicians do so by sharing the work with random people on the internet and ask them to contribute to a greater album or EP they are working on.
No matter your background, location, or project, you can crowdfund on the right platform.
What are some of the advantages of crowdfunding?
Whereas institutions such as banks and investment groups rely on what they can get financially out of a loan, crowdfunding is a fun and neat way for many people to contribute to causes and interests that they like. Crowdfunding is flexible in that people from all over the world contribute to random and celebrity crowdfunding attempts because of the diversity in what you can experience.
For the crowdfunders that are established, it’s an easy way to drum up capital given that you provide crowdfunders with the right perks. For startup businesses, there are a myriad of ways you can do so. You can offer betas of a product that is being developed such as a video game or a new tool.
For artists, you can offer fans first listen or a single that has yet to be released for contributing to the album or music video campaign.
For beer craftsman, you can offer (where legal) a taste of a new product in the form of a shipped bottle or one of the larger contributors names on the bottle itself or website.
What’s interesting about crowdfunding is that it is just another way to buy and sell but its repackaged. It’s about what you are willing to offer in exchange for the patronage of strangers, friends and family alike.
What are some of the disadvantages of crowdfunding?
Most people can never predict how their crowdfunding campaign will do. Even celebrities with masses of followers have trouble getting their point across well enough to generate a successful campaign.
It’s challenging because you have to both sell others on your cause and have a worthwhile enough project that they are willing to give to you in exchange for perks only.
The competition is also fierce for those that don’t already have a following.
Ultimately, it comes down to perseverance, creativity, branding, and just a bit of luck. For most, crowdfunding is a fun way to get involved with a digital community. For a few, it can be a life changing opportunity.