Crowdfunding 101: Everything You Need To Know About This Popular Fundraising Method
Tags: Entrepreneur, Crowdfunding Marketing, Crowdfunding, Entrepreneurship, Crowdfunding Tips

Crowdfunding is one of the most popular ways to raise funds for an idea or project these days. Gone are the days in which a person needs to find an investor or hit up their friends and family only for some money to make an idea a reality. Now, it just takes a good idea and an Internet connection to share that idea with the world. Here is a closer look at how crowdfunding is really changing the game.

The Difference Between Crowdfunding and Traditional Funding Methods

There are always going to be conventional ways to raise money for any type of project. However, the beauty of the Internet is that it can connect people with those who are passionate about very niche topics. For example, launching a product with a focus on a very specific type of pain point might only benefit if you find those exact people out there with that pain point. Traditional funding methods would make it difficult to spread the word, but online all the right people can see it.

Funding can also come from quite a few individuals instead of focusing on a few big investors. This means less reliance on someone who has a lot invested into a project. There is still pressure to make the idea become a reality, but crowdfunding is much more built for the world we live in today.

Top Crowdfunding Platforms

Kickstarter and GoFundMe have really taken over as the two leaders in crowdfunding for their own types of crowdfunding. Kickstarter is a great option for those looking to raise funding for a product or service, where as GoFundMe is great for charitable fundraising, including raising funds for medical procedures and expenses.

That is not to say that there are not a lot of other options to turn to. Other popular choices include Indiegogo, Patreon, RocketHub, CircleUp and more. These alternatives might offer something slightly different than the others, so it is important to look at them all a bit before committing. Some might work better for different types of products or services as well.

Campaign Types

Crowdfunding can be used for a number of campaigns to help raise money for basically anything. Some people will use crowdfunding to launch a product, while others are just trying to see if they can raise enough money to pay medical bills after an accident.

A product, application, or service usually needs some type of capital to get started. When a person puts together a campaign, they can market their product as well as possible and show why it is in need of funding. Many people will attach incentives to help entice people into putting money towards the campaign.

Raising money for charity, illness, or injury is it a little bit different. Most people are just going to tell the main story about what happened, and then they will usually list all the expenses that go with it.

Components to Launching Successful Crowdfunding Campaigns

Above all else, presentation is huge when it comes to launching any type of campaign. Not only does a person need to know what they are putting their money up for, but they need to be excited about doing so. This is especially true for products.

Marketing is also big, because crowdfunding is becoming somewhat saturated. Even a great campaign can be lost in the shuffle if it is not market right. That is why so many people are using funds to do just that. Company such as us at Ideazon are there to specifically help those who might be struggling on that front.

How to Contact Ideazon for Crowdfunding Help

To set up an initial consultation with Ideazon on campaign ideas and general crowdfunding help, visit Ideazon.com/crowdfunding.