Thinking of starting a business and delving into your dream project are two different things, which require commitment, a practical mindset, and a thick skin. It is a difficult path to tread on, especially when one doesn’t have the financial edge over them. Since not everyone is born with a silver spoon like the Kardashians, who can start multi-millionaire projects with just their family’s support, the ordinary man has to go the extra mile to amass the right amount of capital for their dream project. This is where crowdsourcing comes in handy for the average dream weaver to make his dreams come true.
Defining the Concept of Crowdsourcing
Crowdsourcing is a relatively different technique for new businesses to accumulate funds for their new venture. According to the U.S. Securities and Exchange Commission, crowdsourcing is a funding method in which capital is raised by considerably small distinct investments put together by a large group of people. This method has become popular because it can be managed by individuals (s) from all kinds of financial backgrounds. Currently, there are multiple kinds of crowdsourcing methods, which are used by the general population.
The Different Kinds of Crowdsourcing
One type of crowdsourcing is donation-based crowdsourcing, which involves generous aid with the donor demanding nothing in return. The second type is debt-based, which is peer-to-peer-based (P2P). The debtor accepts finances and has to repay them with interest added by a certain date. The third type of crowdsourcing is a rewards-based in which the donors achieve several that are based on the amount they have donated. For example, if a person donates $20, they will receive a certain incentive for their donation. And the fourth kind is the value-based kind, in which the contributors attain a specific number of shares of the company for investing a certain amount of cash. Get learn more information liangzhongmiye Read more about Mywikinews
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How Does Crowdsourcing Work?
All kinds of crowdsourcing follow the same steps, irrespective of the type of method a person selects for contribution. It all begins with a story. Businesses create a backstory for their initiative that explains the reasons why crowdsourcing is required by the enterprise in the first place and explains the intense necessity of the monetary support for the new product/service by the new venture. Next, they explain how the new product/service is necessary for their target audience. This step also elucidates the target capital that’s required.
The marketing team then presents a series of campaigns that are meant to show how the collected amount would be used by the enterprise to achieve its goal. Here rewards-based crowdsourcing may be used by the business to attract the right sponsor. This will then be followed by numerous engagement tactics, which are meant to gather the amount specified. Once the specified amount has been attained, the business is ready to deliver all that it has promised. Nothing explains a crowdsourcing method better than a political campaign before the election. Whether you pick President Barack Obama’s political campaigns for his elections or Donald Trump’s, both are excellent examples of understanding the technique of crowdsourcing.
The Top Crowdsourcing Websites to Finance Your Start-up Idea
Listed below are some top crowdsourcing websites:
Crowdfunder for Shopify
This app is great if you already have a booming business set up on Shopify. Crowdfunder works wonders for business owners who need some capital investment for a major makeover of their venture and don’t want to spend extra on the mega overhaul of their existing Shopify space. This app is also great if a business owner wants to introduce a new idea to their business. What’s more, is that the fee for the monthly subscription plan is also reasonable, just $24 per month, which is separate from their Shopify subscription. An example of Crowdfunder’s campaign is Keysmart, which wanted to revamp loud, chunky keysets and replace them with a seamlessly better safety solution that didn’t make all that noise. To carry out this tranquil idea, the young venture required a capital of $5000, which they successfully attained via the Crowdfunder app.
Patreon is ideal for all kinds of artistic initiatives. Whether it is setting up a new publication such as an indie magazine or setting up a new band, if you are looking for some funding, Patreon is your place to be! The site’s USP lies in its creative space that aims to make all artists financially stable. In comparison to Kickstarter, Patreon differs slightly. They can access their accumulated funds collected so far and do not have to wait for the crowdsourcing process to end. It is quite similar to the subscription plans seen in most SaaS solutions. The donors are called Patrons and have to subscribe to the creative initiative monthly subscription plan for a nominal fee. For instance, the UAE-based PostScript Magazine was an indie venture that decided to crowdsource its small enterprise. After releasing their 33rd issue, the creatives at PS decided to use the Patreon platform to raise some funds for the expansion of their team. They created an account on Patreon and the first 50 subscribers were offered PS merch, BTS of the monthly feature, along with many other goodies. This first look into the exclusive content allowed many readers and fans of this indie magazine. Just make sure that your current internet service is as fast and reliable as one of the CenturyLink Internet Plans so that you can enjoy the countless benefits of Patreon.
Indiegogo is similar to Kickstarter but the similarity soon ends with the various options and the unique crowdsourcing procedure. For one, Indiegogo allows the business owner to keep the funds collected so far. In comparison to its alternative, Kickstarter does not allow this and one cannot access the funds unless they don’t reach the limit set by the business owner. This site aimed to empower small business owners all over the country. And has seen an increase in its popularity because of its flexible funding model. However, all these websites are of no use, if they are subjected to a glitchy service. That’s when users should contact local internet providers based in the area to fix the issue.
Although these are just some top sites, they are popular for a reason. Sign up with any one of them if you are looking to crowdsource your next entrepreneurial venture. On a side note, these apps can totally fall flat if your connection is glitchy and giving you trouble. If the usual techniques don’t work, we recommend that you get help from Xfinity Customer Service Number to get proactive support instantly!