Crowdfunding is less about the funds, more about your crowd!
The word ‘crowdfunding’ involves the crowd before one gets to the funds. We have spoken a lot about generating these funds, but not enough about the people who help in the task.
So how does crowdfunding work? You create a fundraising page, share it with people on social media and then donors contribute to your campaign. It may be possible to squeeze the entire long-winded process into one small sentence. However, it is not so simple in practice.
The most important and the most difficult part of running a crowdfunding campaign is to connect with the right crowd. These will be people who trust your idea or work enough to invest their hard earned money in it. More than that, they trust you to do the right thing.
Here’s a few ways in which a campaign can help you:
As a startup/business:
- Its a great marketing tool. As you run your campaign, you reach more and more people. These may include a lot your early consumers. You could also generate some publicity among media and bloggers based on the success of your fundraising efforts.
- It helps you test the market. The way your campaign turns out and the discussions about it on social media will give you several insights into customer behavior. Its a great marketing research tool.
- You could land some great associates, even venture capitalists through a campaign.
As a nonprofit:
- Helps you assess the goodwill your work has created so far.
- Success of your campaign is like an endorsement that people believe that the work you do is needed and is making some impact.
- It is a great tool to make your donors feel involved in your projects
- It helps you perfect your pitch. Its not just something that is important for businesses. Nonprofits need to tell their stories well. Whether it is putting your story across on the crowdfunding platform, creating a video to complement it or the subsequent social media posts, all steps of the process will help you tell your story a little better and a little differently than before.
As a community:
- It brings the people in the community closer to see their efforts getting a solid shape in the form of the project you raised funds for.
- Small projects to improve neighborhoods or help a community improve their surroundings don’t need to be stalled for the lack of funds. Instead it gives way for a more effective “social funding” model.
- Those who have taken part or contributed financially in the project are more likely to appreciate the finished project and help in its upkeep.
- It creates a feeling of inclusion for anybody who has contributed, even if they were not a part of the community before.
As an individual in need:
- Helps you understand who among your family and friends you can count on in a difficult (or happy) situation.
- Brings you closer to the ones who contribute, as they will more likely want to redeem their rewards and keep a track of how things come along in the long run.
- Helps you reel in your community’s support, giving you friends you didn’t have before.
As an artist:
- Gives you a chance to involve your fans, friends and everybody else in your project.
- With direct interaction during the campaign, your fans can actually see you as a person rather than just the artist.
- Their support is an assertion that your work is good.
- Puts off a lot of pressure of running around to organize the required funds, giving you more time to indulge in creative pursuits.
Isn’t crowdfunding a great way to connect to people who share your ideas? You could also get on board this train, even for free. Hop over to Crowdera and start your journey towards making the right connections right away.