Crowdfunding has quickly become one of the most popular forms of fundraising in the past few years. Industry giants like Kickstarter, Patreon, and Indiegogo have helped tons of entrepreneurs fund some of the greatest (and most unusual) ideas. Some companies have walked away with much more than their initial request. For example, the Pebble Time wanted to raise $500,000 and ended up making over $20 million, making it the highest-funded Kickstarter project in history. Are you still not convinced that crowdfunding is for you? Here are some of the potential benefits of crowdfunding:
1. It is free. Unlike traditional forms of fundraising, crowdfunding is entirely free to do, although some places will charge you some of your earnings. As seen with the Pebble Time and many others, you can quickly make profits off the Kickstarter funding alone.
2. There are no interest fees. When it comes to traditional investing, like the kind you see on Shark Tank, the investors always ask for part of your company’s stock or a percentage of your profits. When it comes to crowdfunding, you don’t have as many obligations, but you should make the best of what you get.
3. You will be introduced to potential new customers. If your product is something brand new that hasn’t even hit the market, any backers will likely be customers who are interested in what you are selling. Many people love scrolling through Kickstarter and other websites for new and exciting content. The virtue of having your project on those sites will get fresh eyes on your offering.
Crowdfunding is a fun and exciting way to raise money for a project or business. The most important thing to do is to make sure that you offer something of value for your backers. Most people won’t donate out of the goodness of their hearts. You must give them something in return such as a gift or a special perk. Make sure to work those into your campaigns, or you’ll be doomed to fail.