What is crowdfunding? you may wonder, so let me explain. If someone or an organization of some type (it can be a loosly defined group or a corporation) has an idea, but not the money to see it come to fruition, they can go to the global masses to finance their plan. For example, charities are all crowd funded, as are churches. Political campaigns are crowd funded. And crowdfunding has financed independent films, music albums, and many other projects via the different crowdfunding sites online. In this short article, let’s look at some of them and what they do.
Launched in 2008, Indiegogo is a very popular crowdfunding site that was founded by three partners: Danae Ringelmann, Slava Rubin, and Eric Schell. Each of them bring different skills to the table in terms of finance, marketing, and IT. It has seen 3,500 projects uploaded from 100 different countries around the world. So, as long as you have a bank account, you will be able to participate.
Like the majority of crowdfunding sites online, Indiegogo is free to add your proejct to, and also like a majority of the sites online, Indiegogo takes a commission from the successful site. At the time of this writing, it’s a 4% fee, so when you’re deciding on how much money you need to complete your project, add that amount into your request.
Another very popular crowdfunding site is Kickstarter. Unlike Indiegogo, your project on Kickstarter will have a particular deadline. You have only that amount of time to collect all of the donations you’re requesting, or the project fails and you get no money at all. The upside for contributors is that their credit cards won’t be charged. The upside for the project owner is that deadlines usually help people to take action faster.
And that’s a differentiation that Kickstarter makes plain. People who donate to your crowdfunding project are not investors. They have no say in how the project goes from the time you get the funding until it is complete. They don’t get their money back for any reason, and it’s up to the person who put the crowdfunding project up to fulfill on the promises made in return for donations.
On the other hand, your project will run on Kickstarter until the dealine you set for it to be fully funded. If your project is funded early, people can still donate and you’ll end up with more than you asked for. For example, a recent project for social marketing software asked for a mere $10,000 and came away with $181,535!
International members are permitted on Kickstarter as long as they have an Amazon Payments account. The fee for a successfully funded crowdfuning project on Kickstarted is 5%.
There are also specific crowdfunding sites for people who want to do specific things. SellaBand,com is for musicians, Quirky.com is for inventors, and CreateaFund.com is for people who want to create their own crowdfunding site.
You can participate in crowdfunding on many different levels and you can get funding for just about any project you want to get funded. To learn more about any of the issues involved with crowdfunding and how it works, visit us at http://90MinuteCashAdvance.com.