Crowdfunding is a term that you may have heard a lot lately
in the news, online, and from friends.
Maybe you’re unsure exactly what it is that people are talking
about. The concept of crowdfunding is
quite simple, and in this piece, we’ll take a look at each step in the process.
I’ve got an Idea!
It happens every single day.
An inventor or developer has an idea for a product or service. That product could be something new and
revolutionary, something artistic, or something that improves on an existing
product or service. The problem that you
face is simple and very common: you do not have the necessary funds to develop your
great idea.
The enterprising inventor then tries traditional means of
raising venture capital. This often
means presenting his idea to large investors or companies. These meetings are stressful and usually
unsuccessful. Even in the unlikely event
that the concept is well liked, it can often come with strings attached including:
·
Providing a majority of the profit that may come
from the development of the product to the investors.
·
Outside, often uninformed, input, changing the
core concepts of your idea.
This is where many great concepts die. Not anymore.
Turning to the Public
Now you have options when traditional means of raising the
capital for your idea fail, or don’t suit your personality or vision for your
project. Throughout history, people have
turned to friends or family to help fund new business ventures or concepts. Crowdfunding takes that one step further, by
turning to the public, asking them to invest in your idea.
Using a medium, such as DonatePages.com, you can present
your idea to the public. You’ll be
provided with robust tools to talk about your concept, vision, and how it makes
people’s lives better. People will
evaluate their idea, get excited, and make small contributions to your
project. Instead of asking one or two investors
for thousands of dollars, instead you’re asking thousands of investors for just
a few dollars.
In return, the developer often offers special benefits and
perks to those who’ve donated to their project, usually increasing in value by
the level of donation. Perhaps a
filmmaker will give an early DVD copy to someone who donates $10. For a person who donates $1,000, they may
offer a producer credit. For someone
kind enough to donate $10,000, that person may get a cameo appearance in the
movie.
Crowdfunding is a wonderful way to increase your opportunity
to properly fund your invention, service idea, or artistic project without the
stress, embarrassment, and loss of control that traditional means of raising
investment capital works. More so, you
have the opportunity to develop lasting relationships with large groups of
people who may be interested in future projects. If you have an idea, what’s stopping you from
starting a campaign today? You may turn
your dream into a reality!
