Crowdfunding: ‘Yay!’ and ‘Eek!’

By October 9, 2017Crowdfunding

Rewards-based crowdfunding ( think Kickstarter or Indiegogo) offers a fresh avenue for raising funds and gaining visibility. As with any first step on a path with so much potential, there are plenty of things to be excited about, but also things that may scare you a little. Here’s a short summary of some of the ups and downs, or the YAYs! and the EEKs!

YAY! (aka: things to be excited about):

  • The rapid investment and visibility that can be secured through rewards-based crowdfunding
  • The potential size of your new audience and supporter base
  • It’s for everybody, and not just for those with deep pockets. Or for ‘Shark Tank’ or ‘Dragon’s Den’ wannabees
  • Crowdfunding can be used by a business of any size, for almost every imaginable project or product, and at any stage of growth
  • It brings business and innovation investment within reach of everyday people, enabling them to participate, support and be involved in new projects, ideas and causes they believe in
  • Depending on the type of crowdfunding, you can raise funds without having to surrender equity or control of your business
  • You no longer have to convince a small group of investors that your project or idea is brilliant. Instead you get to pitch your idea to a large number of people, hoping to convince enough of them to contribute a small amount each

crowdfunding challengesEEK (aka: crowdfunding challenges):

  • Being excited about the phenomenal possibilities offered by crowdfunding, only to discover tumbleweed
  • It can be daunting and complicated to figure out which site to use. There are hundreds of crowdfunding sites which each follow different funding models, accept different types of projects and have different fee structures
  • It’s raw. You are sharing your project, service or product on a very visible platform
  • The average crowdfunding campaign is condensed and stressful, so you need to raise visibility, awareness and support in a very limited timeframe
  • Choosing an ‘All or Nothing’ platform means that if you don’t reach your target, you don’t get anything
  • If your campaign is successful, you have to deliver to and support a customer base that has appeared almost overnight
  • You no longer have to convince just one, or a small group of investors that your idea is brilliant. Instead, you must pitch your idea to a large number of people, hoping to convince enough of them to contribute a small amount per person

If you’re thinking of launching a crowdfunding campaign and want to know what crowdfunding challenges you need to be prepared for then join us for a webinar on Friday the 13th to learn 13 things to avoid so you don’t screw up your own crowdfunding campaign.

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