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Have you had success with a crowdfunding campaign?



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Have you had success with a crowdfunding campaign?

Hello all. You'd be surprised, but not everyone has heard of crowdfunding yet. Mainly those people that don't use the Internet much. I was talking to one of my friends the other day about crowdfunding because he was saying he had this cool idea and I was saying that he could start a crowdfunding campaign and get donations to it. At first he didn't understand what I was talking about as he'd never heard of crowdfunding before so I had to explain the concept to him and how it all works. I know the circles I keep right!?

What is crowdfunding?

I was explaining that basically the way it works is that you present your idea that you have, whether it's an idea for some new service like a mobile dog washing service or mobile ear cleaning service or some new high tech gadget or invention whatever. Then people can "back" you and donate money to your idea. Then when you've reached the required amount needed to do whatever you need to do to get that idea off the ground and into a running business you can. And you can offer rewards and incentives to those that back you such as a share in the business or tax benefits if you're a registered registered NGO (non-governmental organization). Although people that donate for good causes like someone needing clothes don't generally expect to get their money back. They just donate to you because they think it's a good cause!

What types of crowdfunding is there?

There are basically 3 different types of crowdfunding. There's donation crowdfunding, where people can donate to you because they like the cause and you can offer them some incentives in return like free ticks to the events you'll be holding or free albums and tracks you release and other gifts and stuff. You don't have to give the money back and generally, all the donations you get are considered to be intangible and yours to keep and put towards what you need it for. Donation crowdfunding is more ideally suited for someone that need to raise some money for something they need to improve their life with in some way. It could be something like you need the money to buy a new car or a new washing machine. Or you want to hire a studio out so you can make songs. If they like your cause and they like your sample songs, and they want to spend their money on something they can back you on it!

Then there's debt crowdfunding where the donators or for want of a better word "investors" get their money back with interest on top. This is sometimes called peer-2-peer or lend-2-save and it lets people basically lend money and bypass the banks. The returns you get as a debt crowdfunding investor are always financial. Although you will be able to say you contributed to the success of someone's idea for some innovate product or business. Sometimes known as "micro-finance", this is good for people in poor countries where no interest is paid on the money loaned but the one who lends it is rewarded in a social way such as being invited to events as well as what you will receive back financially. You will have to have a solid idea and put together concepts and know about how the business will work to get people to back you though.

Then there's equity crowdfunding where people invest their money in exchange to receive equity which could be a certain percentage share in that business for the life of that business. To a slice of the earnings every month or year. This can be much more profitable than debt crowdfunding but also carries more risk as well. If the idea is successful then the value of it will increase. That's just the law of supply and demand. But if that idea flops, the interest in it will flop along with the value of it and you could loose out on every cent you invested in that idea. That's why you should do a lot of research into something that is equity based to ensure it doesn't flop later down the line! You just have to convince people that it wont and will be a success.

Have you had success with a crowdfunding campaign?

So that's the basic 3 types of crowdfunding.

Have you ever done any of these types of crowdfunding yourself?

Did you have any success from it? Did you meet your goal?

Or are you still waiting?

Or have you ever even backed someone's crowdfunding campaign?

Do you have any ideas you think the crowd could help you with?

Have you ever thought of making a crowdfunding campaign but didn't know how?

Would you pay for someone to make a crowdfunding campaign for you?

Just wondering. Have you had success with a crowdfunding campaign?

Thanks!

Comments

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hitmeasap

I would definitely be willing to pay someone to do a crowdfunding campaign for me, if they would also handle the advertising that needs to be done. I've never done a crowdfunding campaign myself but I've been pretty close to a person who did. And he was not successful at all.

He couldn't get any donations at all, which obviously could be for several reasons. The first reason is that no one liked his project. The second is that no one actually found the project. And I totally believe that the second reason is the major thing here. You'll need to get donations before you'll get more. Just how it is with likes on content. People don't want to be the first one to do things.

I also assume that you'll need to use your real identity, linking to your personal facebook accounts etc. And personally, I'm a bit skeptical. I obviously understand that the people who'll potentially donate would like some sort of verification, but at the same time, I personally don't want everyone around me to see what I'm up too.. So that would be a bit tricky.



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MusicMoguls

Man i really wish i could say i have had success. These types of campaigns really seem like a good way to get your business funded for free. The problem i for see is that nobody invests or can find your campaign. How do you come with a idea good enough to make people want to fund you? I always see these stories of people who are homeless or need special surgery making tens if not hundreds of thousands of dollars. I mean that is great especially when you have a cause that puts the money to good use. What about people like me who need a business funded? Will people still be as excited to help you knowing that you will just continue to make money after your funded? I am super interested in finding out i just don't have the time to do it.



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idealmike

Thanks Keyz I hear you brother! Yeah you will have to work on promotion of it as well. Although, if you do have a really novel idea, it can pick up traction on its own. There's a lot of campaigns like that, which people just done on a whim as a laugh only to find people started backing it and ended up reaching it's goal. The trick to an idea is to stumble upon it most times, like when you need to do something and think "wouldn't it be good if enter idea here". And yeah it's crazy what some people start campaigns asking for but equally as crazy what some people back as well. And it's really just a matter of convincing people what the money will go towards and how it will help you in some way which can then be helpful to them as well and the whole world on a whole lol.



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Lynne

I sort of have a crowdfunding campaign going on Patreon. I have 2 patrons that have pledged a few dollars to me. I haven't spent any time on adding content there. This is how Patreon works, people pledge their support to other people that create content. I have created lots of content but I have hardly added any to Patreon.

The next thing I should be doing is promoting my Patreon profile. I have done a little bit of promotion but not nearly enough.

I believe that crowdfunding can be an amazing way to fund a business or a project but like anything in this world, there needs to be work done. It is not just about creating a crowdfunding campaign, sitting back and scooping in the funds. The campaign must be pushed, it must be marketed.

Otherwise all that will happen, like Andre mentioned, nobody will see the campaign!



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MasterA

I have not down debt or equity crowdfunding in the past but I have done donation crowdfunding and honestly it went very bad and only manage to get like 5% of my goal after two months. I think it is better to just find a business partner or investor and make a deal with them. I think crowdfunding is too uncertain and I don't really like the idea of it.



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Corzhens

Over here, the only successful crowdfunding I know are those involving celebrities. One actual example is the movies. A popular actor named Piolo Pascual produced a movie by crowdfunding. He started the ball rolling by investing his money and some of his friends followed his act. The cast of the movie are popular actors but in the lower category which means the talent fee is minimal. And for an investment of a few millions, the movie made 350 million. I’m sure that experience will encourage crowdfunding in the movie industry.



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Kakashi2020

I'm really interested in Crowd funding and would like to know if there's a crowdfunding site in which I could go to? Or even a third party site in which I could avail crowdfunding services from.



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