Is Crowdfunding A Solution For You?

Crowdfunding is Quickly Becoming a Worldwide Phenomenon

The global economy has been spiraling out of control since 2008.

Governments all over the world have been scrambling to put the pieces back together.

A new twist on an old concept has been experiencing rapid growth and is seen as a viable solution for many.

Crowdfunding is really very old but like everything else in our changing world, the concept of Crowdfunding has also been altered.

Wikipedia defines it as, (a form of crowdsourcing) is the practice of funding a project or venture by raising monetary contributions from a large number of people.

Crowd funding is a form of alternative finance, which has emerged outside of the traditional financial system.

The world wide web has allowed Crowdfunding platforms to  emerge and grow rapidly.

One of the oldest forms of Crowdfunding is when France donated the Statue of Liberty to the City of New York in 1885.

The City of New York did not have the money to build a base for it.

Over 160,000 small donations were contributed by way of Crowdfunding.

One of the modern day versions is President Obama generated $631,000,000.00 in small donations for his 2012 reelection campaign.

France is using Crowd Funding to pay for the 2024 Olympics it will be hosting.

Crowdfunding

Crowdfunding

Crowd Funding Platforms Have Exploded in Growth since 2003

The most common types of Crowd Funding are reward based, lending based, equity based and donation based.

The most common known platforms are Kickstarter, which is only for business.

Indiegogo and Go Fund Me are also two of the other crowdfunding platforms that have emerged on top.

Crowd Funding or Crowd Sourcing has been around a long time.

The terminology is what has changed.

If you take a look around the world anytime there is a disaster, people generously reach into their pockets and give to help.

Crowd Funding and the word project are very new terms to people.

The word project is usually associated with school project or at business, work project.

Today the word project in reference to Crowd Funding is anything from paying off debt, medical bills, travel, funding retirement and launching a business.

The times are changing and technology is giving us far more advantages because we can go Global very quickly.

Social media has connected us in ways that never existed before.

Crowdfunding platforms are cropping up everywhere because they are viable solutions to people’s problems or challenges.

Crowd Funding

Crowd Funding

The Challenges of Setting up a Crowdfunding Campaign

How does this whole system of Crowd Funding actually work?

It is very similar to you launching a website.

You create your project and find a platform that suits you and begin to market.

Most of the top 10 platforms all have fees and time frames which are huge constraints.

Like a website after you launched your project the real work begins.

You are responsible for all your own marketing in your crowdfunding campaign.

Many platforms also have a restriction, whereby, you need to raise 50% of the funds within the time frame designated.

If you don’t reach 50% you don’t get any funds.

The platform keeps its fees and you go away empty handed.

There is a better way.

Click here to find out more.

If you have no marketing skills and little time then you will not succeed.

These are some of the main reasons why the crowdfunding campaign failure rate is 85%.

Imagine, you are competing with thousands of other projects to generate funds.

There are lots of great websites out there but with little or poor marketing no one knows about them.

Start up Crowdfunding for Business

It is increasingly difficult for business start ups to get funds to launch or grow their business.

The banks have tighter restrictions and are only looking for solidly backed business owners.

Start up crowdfunding makes sense because its usually a lot of people gambling a little bit.

When the risk is low often times so is the reward.

Start up crowdfunding is mostly reward or equity based.

This means that the people investing are going to get a piece of the business or some benefit.

One of the biggest selling games of all time, Trivial Pursuit, was created with Crowd Funding.

Imagine how the people who said no feel now.

Many companies including Microsoft and Apple started off with a group of investors. (Crowd Funding)

There are actually countless numbers of records and movies that have been crowdfunded.

Its really the concept of a lot of people doing a little bit to make something work.

Venture capitalists are really just doing Crowd Funding on a big scale.

Start Up Crowdfunding

Start Up Crowdfunding

Donation Crowdfunding is a Brilliant Strategy to Support Projects

Governments have been cutting back their support for charities, non profit associations and other causes.

The number of people in need is growing but the funds are just not there to go around.

Donation Crowdfunding makes sense because it is for the people by the people.

The cancer society and other charities have been using this approach for many years.

The challenge is that the need has shifted to outweigh the supply of funds.

It seems like everyone has their hand out these days and you can’t give to everyone.

What is the solution?

Donation Crowdfunding is growing because people are stepping up to help out others in need.

The challenge with donation Crowdfunding is the same as the others.

Fees. Time Frame. Amount raised restriction.

This puts even more pressure on charities and non profit associations to become master marketers.

This means spending money on marketing when you are trying to raise funds.

If you don’t meet the criteria of the platform you fail and get nothing.

There is a platform that operates under a no fee, no time frame, no restriction structure.

It is also a pay it forward system designed to have everyone on the platform work together as a community.

Click here to discover a better way.

Crowdfunding

Crowdfunding

The Future of Crowdfunding

Is Crowd Funding a fad or trend or is it something here to stay.

Lets take a look at some statistics.

In 2012 Crowd Funding was just a blip on the charts at 2.7 Billion on all platforms combined.

In 2013 it reached 6.1 Billion.

In 2014 it reached 16.2 Billion.

In 2015 it reached 34.4 Billion.

It is expected to reach $70-80 Billion in 2016.

Forbes is predicting that Global Crowd Funding will hit 1,000 Billion by 2020.

That’s a lot of zeros and a lot of growth so it looks like it is here to stay as a source of raising funds.

What will the next generation platforms look like?

What if I told you there was a holistic pay it forward platform that is 100% donation based?

Do you like helping others and helping yourself at the same time?

Check this out and see for yourself.

Cheers

David Thompson

P.S. Happy Crowdfunding!!!

 

 

 

 

 

About David Thompson

I help anyone in any business at any level of experience create profits through internet marketing using the right tools resources and mindset. my website, my business, and follow me, +David Thompson on Google+.

Speak Your Mind

*

*