4 basic things you should know before crowdfunding your creative project
Posted on 7 March, 2016 by Team Wishberry
Step 1: Learn about the four types of crowdfundingDid you know there are actually four types of crowdfunding models? Here’s a quick brief on what each type of crowdfunding means:
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.)