Crowdfunding is not as straightforward as you might think. In fact, it’s really, really confusing.
When I mention the word “crowdfunding” a lot of people instantly think of the website GoFundMe. Others think about Kickstarter. Some reference startup financing.
There are so many different types of crowdfunding that you could write books about the topic – actually I have, six of them (haha).
It might be a mysterious topic, but that doesn’t mean it has to be complicated. That’s why I’ve put together a YouTube video for you which breaks down these different types of crowdfunding and sheds some light on it.
You’ll quickly get up to speed with what crowdfunding is and how you can use it.
Did you like this video?
Dope! Take a sec to subscribe to my channel for more info like this. I put out videos regularly on the topic of crowdfunding. You’ll learn how to launch a campaign, raise money, and get funding for your passion.
Now that you know about the different ways you can raise money with crowdfunding, you might be wondering, which avenue is right for you?
You can’t raise funding for EVERYTHING
You can use Kickstarter for an equity crowdfunding campaign. You can’t use Fundrise for a creative project. Each website has it’s own specific type of crowdfunding.
First, you need to settle on what you’re actually raising money for, like a nonprofit, personal cause, real estate, tech startup, creative project, or fashion line.
Once you figure that out, then you can begin to explore the specific type of crowdfunding that is best for your needs. Fail to do this and you’ll end up trying to raise money for a business on GoFundMe (bad idea).
I also shared a bit about how to decide on this video.
Each website has its own speciality
Now… there are some websites, like Indiegogo, which offer a few different version of crowdfunding (think equity, charity, and rewards-based).
However, for the most part, each website specializes in a certain type of crowdfunding. For example:
- Real estate: Fundrise, Realty Shares, Realty Mogul
- Equity Crowdfunding: Seedrs, CrowdCube, Start Engine, WeFunder, etc.
- Rewards-based: Kickstarter, Indiegogo, Seed and Spark.
I didn’t even get into nonprofit crowdfunding and the websites that focus on this type of funding. As you can see, there are lots of different resources to choose from.
Imagine gaining access to a crowd…
Of all of the entrepreneurs I’ve spoken with over the years, the #1 thing that they’ve said they love about crowdfunding is how it puts you on the map.
You can go from being a nobody from an obscure part of the world to a majorly successful business owner in the spotlight. With a successful campaign comes media attention, social shares, and virality.
It’s true that the core of crowdfunding is… funding… but ironically, it’s the least valuable part of the process. Of course, you’re going to get funding, but what about after that?
What’s more important is funding is the way that the campaign launch process puts you in the perfect position to capitalize on your success going forward. It doesn’t stop with a successful fundraiser.
How to get cash monayyy (without being salsey)
People don’t just give you money online. No one is just going to hand over $25, $50, or $400. If it does happen, it’s the exception, not the norm.
There are only two reasons why people support crowdfunding campaigns:
- Relationships: Giving money is an extension of the relationship with the creator.
- Positive Expectations: When someone gives you money, the expect something in return. That could be a product that solves a problem they experience, a product that enhances their life, or they want to feel GOOD emotions.
If you don’t have either of these, then you’re gonna have your work cut out for you. You gotta figure out how to build up these two pillars before launching your project.
Decide to launch anyway? You won’t get funding. Plain and simple. You’re wasting your time.
How I can help you
Along with putting out quality education, I also coach students through the process of running a successful crowdfunding campaign. Interested?
We’ll nail down a launch strategy that works given your resources, social network, and plans for the future. You can draw from my previous experience to have an explosive announcement when you go live.
You can also dive into my channel and some of the other video that I’ve put out there on crowdfunding, marketing, and getting funding. I also have a podcast, which you can find on iTunes, and this blog, where I regularly put out articles on the same subject.
Hope you enjoyed the vid! Would love to hear from ya!
