How to: Select the right crowdfunding platform for your campaign

How to: Select the right crowdfunding platform for your campaign

Every time we give any advice to a prospective fundraiser, we stress the importance of selecting the right crowdfunding platform. The problem with this is the sheer number of platform available today. This makes it impossible to review them all before launching a campaign.

What, then, is the way to go about to choose just the right platform for fundraising? We give you a few pointers to make the decision making easier for you in today’s #WednesdayWisdom post.

Criteria for choosing a crowdfunding platform: 

  • You first need to ascertain that the cause you are raising funds for qualifies for crowdfunding. This post will help you decide this.
  • Before going in for a campaign, check out the relevant laws in your country/area.
  • There are four different types of crowdfunding: donation-based, debt-based, equity-based and reward-based. This depends on what the donors or contributors get in return. Many platforms are more popular for certain kinds of campaigns. Select the one that suits you the most.
  • All available platforms follow one of the two models – all-or-nothing and keep-it-all. The first one means that you will only get the funds if you are able to raise the entire amount targeted. The second means you can keep whatever you raise. This can have a huge impact on the outcome of your campaign.
  • The pricing models of every platform is different. While some charge a part of the funds raised as a commission, some ask the donors of campaigns to donate for the platform’s upkeep. There are also platforms like Crowdera that are free of charge. At the end of the campaign, the whole exercise must make economic sense.

Now that you know these criteria, you could test whether our platform Crowdera qualifies for your needs. Besides being free, it is also a global platform on which you can collect funds in different currencies.

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2 Comments

  1. Nice informative quick read.

    I would like to note that there are platforms that adopt both funding models to increase project funding. Platforms like Dreams.Build where a project has both models, one for funding and the other for stretch funding. Another platform, though a bit less structured is Indiegogo where creators can choose which model to pursue.

    I think this is important to note as the funding model of a platform can either help or hinder the funding of a project. For example, Indiegogo allows creators the ability to choose but if they pick flexible funding they can introduce sponsor risk into the equation. This could hurt their potential donations. Whereas Dreams.Build alleviates this by placing all-or-nothing before flexible funding, yet still allowing projects to reap the benefits of the flexible funding model.

    As you noted, these models have a huge impact on projects, I’d love to see an article that breaks down the benefits of both models in a pros – cons manner.

    Thanks for the good read!

  2. Thank you for that suggestion, Dakota. I will soon plan a post comparing the two models of fundraising.

    I am glad that you liked what you read. Feel free to leave similarly enlightening comments on other posts on fundraising and crowdfunding on this blog.

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