A few short years ago crowdfunding wasn’t even a word.
Today, thanks to social networking, an awesome shift in power has taken place. While once only a select few could ever hope to fundraise to the masses, now it has become an avenue for creative individuals who cannot generate the capital from traditional distribution channels. Anyone who has built an online community can leverage it to target, inspire, and achieve goals.
That’s because the current social landscape is trending toward community involvement. By embracing the small donor, artists, nonprofits and entrepreneurs are finding they can achieve dreams that were previously out of reach.
LET’S BREAK IT DOWN
Crowdfunding is when a group or individual uses the power of the Internet to raise funds from like-minded individuals in support of an artistic project, an innovation, or a philanthropic cause. For entrepreneurs it means you’re no longer at the mercy of risk-averse banks or venture capitalists for backing.
Simply put, it’s a new world out there. The beauty of crowdfunding is that individuals and groups can use social media systems, which are built into crowdfunding platforms, to leverage their network and inspire them to fund a project, startup, or cause.
The idea is to get many individuals to contribute by telling a compelling story about your project. In return, contributors receive a non-monetary reward or perk, sometimes only in the form of emotional satisfaction. Whether the compensation is tangible or emotional, your contributors’ biggest satisfaction is that they will become part of a community that they can feel good about having helped to usher it into the world.
THAT SOUNDS REALLY EASY!
As long as it’s done right. Though crowdfunding is one of the most amazing tools to help individuals and small groups fundraise, it’s not free money, and by definition, no one crowdfunds alone. Like anything else that’s worth doing well, crowdfunding takes time, energy and community involvement.
Lots of people have great ideas yet many people do not succeed in raising funds through crowdfunding. Just like you can’t pack for a trip if you don’t know where you’re going, you can’t launch a campaign without first developing a strategy for success!
IT’S ALL ABOUT THE CROWD
Crowdfunding isn’t rocket science but it is a complex web of details to learn and execute. After working with several clients I noticed some patterns: people were either getting stuck, unable to figure out a plan of attack for all the details involved, or they were launching campaigns prematurely and failing.
Securing financial backing is labor intensive and can be unrealistic if you go it alone. No matter how innovative, altruistic or community minded your idea might be, in the crowdfunding space in order to succeed you’re going to need to learn the steps necessary to be successful.
Campaigns need a lot of love, attention and support. That’s where The CrowdFundamental’s services can help steer you in the right direction.