People are using the Internet more and more to help promote themselves and to spread awareness of certain needs. A new way that a wide variety of people are getting the financial help they need is through crowdfunding. Crowd funding consists of a group of people who donate money to help finance a larger project. Many charities, political campaigns, and band start-ups create profiles on crowdfunding websites to connect with their investors. The newest profiles that are popping up are people asking for donations to avoid foreclosures! There is a platform out there for anyone in need.
Many people donate to these crowd funding projects, which is a great way to help a small business break into a tough market. If you are looking for a new way to promote your fundraiser, check out these websites:
Kickstarter: This crowd funding website is perfect for creative or artistic endeavors. Kickstarter is considered to be the world’s largest funding platform for creative projects, making it the perfect platform for new workout groups to buy a studio, artists to find funding for supplies, or new filmmakers to complete their films.
Indiegogo: This site is more of a general website, providing crowd funding resources for a large variety of enterprises. There are platforms for people starting dog therapy groups, rail workers going on strike, and even a new line of wristwatches that are voice activated.
Crowdfunder: This website specializes in crowdfunding for small businesses that are going to go big! This website advertises that it crowd funds locally but connects to people globally. If you have a small business, this is the platform for you.
The group or business in need creates an online profile where people can find out about the project and donate money to help finance it. Crowd funding is helping small businesses stay afloat in this unsteady economy by advertising at a very low cost. These small business owners are able to show people their businesses and their products at little to no cost to themselves. But, remember, these websites will take a percentage of the donations, usually between four and ten percent.
The most important thing for funding your cause successfully is to have a good pitch. Make your product sound brand new, engaging, and exclusive! Make sure you are proactive in communicating with your contributors, and promote your project on all of the social media outlets available.
Many of the small business owners offer incentives for donations. For example, a band asking for money to create and produce an album, might offer the people who donated a free copy of the album when it is released. So, philanthropists and investors alike can appreciate this new platform!
By: Kimberly Beers
Blackhawk Investment Corp Intern Writer