What Is Crowdfunding?
It is a process by which people give a small amount of money to collect a large amount of money usually for a cause. It is kind of an alternative finance and crowd sourcing. There are several kinds of crowdfunding, the internet being the main. It consists of 3 parties, the party that will be getting the money, the party that will be arranging the crowdfunding by providing a platform and the people who will be contributing for the cause. Crowdfunding is done for several causes including travelling entrepreneurial ventures, medical reasons and others. Crowdfunding is a very important way of collecting money.
Why Is Crowdfunding Important And How Long Has It Been Around?
Crowdfunding is essential in places like India because most people are below the poverty line and can’t pay their medical or other bills. Crowdfunding in its raw form has been around for quite some time. Fundraisers,crowdfunding in India have known to collect money from the people on the streets by showing their medical bills for quite some time. However, doing it with the help of internet increases its legitimacy and makes everything happen in a more organised way. Fundraising is there to stay.
Crowdfunding can also be essential if you are trying to start a business because crowdfunding can also increase the customer base and make more people aware of the initiative. Fundraisers,crowdfunding in India especially, have been known to use crowdfunding to start their business ventures. One must however make sure how he is executing his campaign because a poorly executed campaign won’t garner a lot of attention. Crowdfunding is very important for most people these days. Even though it has been around for a long time, its significance is increasing with every passing day. Fundraising has never been easier.
As useful as crowdfunding is, it is nothing without our network and social circle. Gathering people is the most important aspect of crowdfunding. Gathering people gives more and more exposure to the campaign which actually makes crowdfunding a success. People can share and tweet about your crowdfunding campaign, they can micro manage your campaign when you’re not around, and they can create support campaigns that organises a part of the actual amount.
Motivation for participation of the donors comes with the storytelling capacity of the creators of the campaign. The more number of people you will keep in the loop, the more effective the campaign will be. The other people, including your friends or family, can run your campaign for you when you are not around. Crowdfunding is dependant vastly on the exposure it gets. Hence, sharing the campaign widely is very important as well which can only happen if there are a lot of people who are sharing your posts on social media and otherwise. These people can also tell other people about your cause who will in turn inform other people. This is very important as this might attract people who feel strongly for your cause and donate generously. So keeping people informed is very important.
These are the baby steps to crowdfunding. Crowdfunding is an extremely important these days. Effective ways are there to make ones campaign a success, one just has to be careful with it. Crowdfunding presents an exciting opportunity for budding entrepreneurs and business owners to obtain funding to help them turn their amazing ideas into brilliant businesses. Whether or not one will succeed at a campaign or not is totally dependent on their contacts, public relations and their goal setting. So go out there and make your campaign a success.