What is crowdfunding?
Crowdfunding is basically a practice where people put in small amounts of money to collect a large amount of money. It is typically done via the internet. It can also be known as alternate finance and crowdsourcing. It is based on 3 parties, the party that gets the crowdfunding money, the party that organises the whole thing and provides a platform and the people who put in the money to collect a certain amount. Crowdfunding can be used to fund various ventures such as artistic or creative projects, entrepreneurial ventures, travelling or medical expenses.
What is the history of crowdfunding? Why is it important?
Crowdfunding has a history of several centuries. Fundraisers in India have also been known to collect money for medical reasons from people on the street but putting your campaign on the internet increases its legitimacy. Crowdfunding abroad has been used for books, war and other purposes.
Crowdfunding has by far arranged for billions of dollars. Millennials and fundraisers in India have been known to trust crowdfunding for meeting several end goal. Primarily gaining popularity in the music and arts community, crowdfunding has been proven useful for several other reasons.
Who all does it benefit?
Starting from people who need to have their medical expenses met to people who have needs in mainstream media, crowdfunding benefits all kinds of people. Earlier people were dependant on external capital, to pitch, make financial projections and other skills that creators of certain areas often don’t have. With crowdfunding however, artists get exposure and support from their customers. Benefitting all, crowdfunding is as useful as it gets.
Why your network is crucial for your crowdfunding success:
As useful as crowdfunding is, it is nothing without our network and social circle. Gathering people is the most important aspect of crowdfunding. Gathering people gives more and more exposure to the campaign which actually makes crowdfunding a success. People can share and tweet about your crowdfunding campaign, they can micro manage your campaign when you’re not around, and they can create support campaigns that organises a part of the actual amount.
Motivation for participation of the donors comes with the storytelling capacity of the creators of the campaign. The more number of people you will keep in the loop, the more effective the campaign will be. The other people, including your friends or family, can run your campaign for you when you are not around. Crowdfunding is dependant vastly on the exposure it gets. Hence, sharing the campaign widely is very important as well which can only happen if there are a lot of people who are sharing your posts on social media and otherwise. These people can also tell other people about your cause who will in turn inform other people. This is very important as this might attract people who feel strongly for your cause and donate generously. So keeping people informed is very important.
The ‘crowd’ in crowdfunding is very important. It runs comprises of the people, and runs by the people and for the people. Ignoring the importance of any one can hamper the success of the campaign. The most important, however, is to have your networking circle on the loop. These are the people who will give your campaign the boost it needs. By sharing, talking and micro managing your campaign, these are the people who will keep your campaign going. Ignoring this aspect will seriously lead to the failure of the entire campaign. So please remember to keep reminding your close ones about your campaign.