Crowdfunding is a relatively new concept, that allows for small businesses and individuals to gain fans and raise money for their projects.
You’ve probably heard of sites like Kickstarter or IndieGogo; these are funding platforms. You post your project (let’s say a book you want to make) and people “donate” money to your project. In exchange for their money, you offer “rewards” in the form of digital copies, printed books, signed books, etc. If you don’t have any start-up money, it’s a great way to raise funds.
The trick to the project head is that you have to post a funding goal, let’s say $2,000, and a deadline, let’s say 30 days. Funding is all or nothing. If you haven’t raised the needed $2,000 in those 30 days, then none of the money changes hands and you’re back where you started. Kickstarter
and IndieGogo make their money by taking a small cut of the successful projects’ intake. (Edit: IndieGoGo, however, lets you keep whatever money you earn, but their take from it is higher if you don’t meet your funding goal.)
People and companies have used crowdfunding to realize all sorts of projects, including: books, films, designs, buildings, submarine trips, markets, music albums and the list goes on and on.
Here is my question to you:
I’m really curious to know what you think and how you feel about crowdfunding, and we’ll revisit this post later, with your comments and votes.
For more information on how to start your own project using crowdfunding, click here.
For information on crowdfunding options and how successful each platform is, click here.