Crowdfunding for the Entrepreneur
The term “crowdfunding” was originally coined to describe the process of raising money for video projects online. Since then, sites like Kickstarter have increased the prevalence and notoriety of crowdfunding services. Crowdfunding replaces the need for grant applications and other traditional fundraising techniques. Crowdfunding relies on the community that you have already built around your project or idea. It aggregates your social networks to give everyone the chance to be part of your project.
Many of the popular crowdfunding sites that are out now are reward based. This is a tiered system that offers rewards based on how much money is contributed. The contributions can be a wide range. The initiator of the crowdfunding project must set a goal and a time limit.
A successful crowdfunding project depends on your pitch. It isn’t simply asking for money, it’s showing your potential investors why your project is important. What is your message? Why are you passionate about your business? How can you turn your customers into investors? A large part of crowdfunding is reaching out to people who will make a commitment to your business and these committed fans are poised to become the advocates of your business.
One crowdfunding site, Rock The Post, is a site specifically for small businesses. The team at Rock The Post not only get your project up and running on the site, they also offer consultations on how to make to make your crowdfunding project a success. You get expert advice from people who know how to launch a successful campaign. From pitch to reward system, you’ll have a quality project to present to your community.
If you decide to use crowdfunding with your business, make sure you find the site that’s right for you. Kickstarter tends to fund media projects, from video games to music videos. IndieGoGo is a mashup of projects, including causes for the Red Cross. Make sure you know where your project belongs before you try to raise your money.
Posted on November 12, 2012, in Biz Tips, Entrepreneur, Internet, Market Trends, Small Business, Technology and tagged business, crowdfundding, indiegogo, Internet, kickstarter, marketing, pitch, PR, red cross, rock the post, rockthepost, technology. Bookmark the permalink. Leave a comment.