4 basic things you should know before crowdfunding your creative project

Posted on 7 March, 2016 by Team Wishberry

 Looking-to-crowdfund-your-idea- Every successful crowdfunding story begins with good research about crowdfunding itself. Here’s a step by step guide of the kind of research your should do right after you think about crowdfunding your project:  

Step 1: Learn about the four types of crowdfunding 

Did you know there are actually four types of crowdfunding models? Here’s a quick brief on what each type of crowdfunding means: Types-of-crowdfunding

Step 2: Find out where does your project fall

  • If you have a tangible end product like a film, a theatre play, or a smartwatch and you want early customers, without giving away stakes or creative control - go for rewards-based crowdfunding platforms
  • If you want to raise funds for social causes like fundraising for disaster victims or orphanages, go for donation-based crowdfunding platforms or even debt-based if you think you can return the principle amount with interest
  • If you have a start up with at least a 100-200 customers already and you want to scale up, get more employees, want money for marketing etc, go for equity/debt based crowdfunding platforms

Step 3: What to look for in the platform you choose?

This goes beyond whether a platform has an international audience or popular names attached to it. You need to consider things like:
  • How responsive a crowdfunding platform is
  • Does it provide you with steady guidance and coaching on how to present and market your project?
  • What is the success rate of ideas crowdfunded on the platform?
  • How do people who know about the platform feel about it?
  • How well does the platform understand your requirements and problems?
  • How much commission does it charge on the amount of money you raise?
  • Is it an All or Nothing platform? (Choosing a platform that follows the All or Nothing model is important because it means you take your crowdfunding project seriously and aim for nothing below 100%. It reassures people’s trust, since they know that if you fail to succeed, their money isn’t going anywhere.)

Step 4: How to crowdfund successfully

Find out the top projects that succeeded in crowdfunding. A simple google search will help you make a list. Find the ones closest to your project. So if you’re making a film, find which other film project raised money successfully and became popular. Then dig deeper into their Facebook pages, find out what they did during the crowdfunding campaign. Better still, talk to the project creators, ask them to clear all your doubts. A crowdfunding platform can definitely help you put in touch with other creators. We understand all this might lead to information overload and probably leave you even more confused than before. But, remember to take it slow- one piece of information at a time. And if you still get stuck, you can always ask us!

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