At some point of your life, there comes a time when you have an idea and want to realize a project, but you do not have the necessary funds to make it come true. Here come to help certain possibilities, like networking, asking money from friends and relatives, taking a credit from the Bank and many others…
While you are on the lookout of how to get funding to make your dream idea come true, there is the growing trend of crowdfunding practiced all over the world, but more frequently it is a usual and common way of gathering money in the Western World. What especially attracts in crowdfunding is that unlike other ways to get financial means, the funds earned through crowdfunding will stay at your disposal and you will not be required to return it to those who helped you.
So which are the benefits of crowdfunding and why is it worthwhile to run a crowdfunding campaign?
If you are just starting a company, convincing the investors about the worth of your idea might be tricky. What is vital here is to build trust among the investors and why not competitors. The crowdfunding formula is much like a recipe. Even though the initial stage of crowdfunding may still present obstacles showing credibility, but through some dedication and hard work crowdfunding will later on help you build validation. How?
When the number of your backers increases, it speaks for itself. They say “Better to have quality, than quantity”. But this is not the case. The more people will trust your campaign, the better will be the impression of investors and the public for the concept.
As mentioned earlier, perhaps one of the greatest benefits and bonus points of crowdfunding is that you get money “for free”, without any obligation to pay off. More details on this: the word “crowdfunding” is composed of two words- funding and crowd; that is funding from the crowd. The crowd, in this case, is the community that is involved in financing your idea.
If in other situations, you would have an accumulated debt to be paid off, in the case of crowdfunding you do not pay back the raised funds to the community; you simply present the realised plan/product that they paid for: it actually works as a return, but not in monetary terms, rather in the form of tangible or intangible products.
In any new project, it is normal to have doubts and/or questions with regards to the process and result it is going to bring. Whether you are sure/unsure about the correctness and positive aspects of the project, it is always worth getting feedback from people who are not directly linked to the project. Crowdfunding will serve as a good platform for this purpose.
The crowd or community that is supporting your campaign may give fair comments on it, as they are neither your competitors nor those who are closely attached to the project implementation. They are people who like your idea, believe in that, hence, they support it. This sort of feedback is vital, as it may inspire you to deliver other aspects of the project that you did not think of before; likewise, it may point out to the downsides of the project that were initially missed out. Consequently, it comes out that your backers are your supporters not only in monetary terms.
Have you ever seen how actively the campaigns are spread over the web? Hence, you might guess that those campaigns do receive hundreds or thousands of views. What a better marketing tool there may be for your project?
Apart from that, list of crowdfunding websites provide Social Media buttons on their sites, which makes it easier to double the visibility of campaigns by sharing them over the Social Media world as well. This way you create a so-called “Advertisement” for the project without spending a penny on that. From here comes the next positive side of crowdfunding, that is:
For the creation and follow-up of the crowdfunding campaign, you do not need to pay, unless the crowdfunding platform asks for a registration fee or a pay for posting a campaign. However, most of the platforms are still free of charge and it is up to you which one to choose.
As you may see, crowdfunding has endless benefits and bonus points to be implemented. So, make up your mind, fill in with energy and start realizing that idea you always dreamt of.