Crowdfunding has emerged as a great source of funding in the recent years. It seems an easy task to do. Just put up a page about your problem, share it with people, make donation appeals and collect the funds required. Right?
The truth is that the chances of failure in crowdfunding are very high. And, they increase manifold if not enough thought and planning has gone into a campaign. Today, we list down a few things that will help you decide whether crowdfunding is the right step ahead for you. Here’s what you will need:
It all begins with the right crowd! The first few contributors to your campaign will be people you know, and who support you. It is with their help that you reach out to a wider audiences. This community also includes any online forum, professional groups or hobby clubs you may be a part of. If you don’t know too many people, you may want to invest some time in community building before going ahead.
SOCIAL MEDIA PRESENCE
Social media is what helps your campaign reach the right audiences. Therefore, it is highly recommended that you go into crowdfunding only if you (or someone on your team) can make good use of any and every social media platform.
DONATIONS OR REWARDS?
The type of crowdfunding is an important factor in its success. And this depends a lot on the cause of fundraising and your situation. There are four broad types to choose from donation-based, rewards-based, equity-based and peer-to-peer lending.
Now, the type of crowdfunding you choose must make economic sense. For example, if you want to raise funds for a nonprofit, you can opt between rewards-based and donation-based. If you choose the former, the rewards would need to be shipped to the donors. In case of a equity or lending, there would other costs to consider. Factor the cost of this and ensure that the campaign is economically sound by the end of it.
If your cause or idea qualifies for crowdfunding, the next step is to select the right platform. Come over to Crowdera and discover the all-new world of free fundraising.