CrowdfundHQ Article

The truth about Crowdfunding and how it works

Posted by Susana Pham on October 18, 2015

Crowdfund is the new rage. It is the concept platform that enables anyone from anywhere in the world to host their project online to acquire funds. It is the most amazing "pay-it-forward" concept EVER!

Who can Crowdfund?

Crowdfunding is for "the people", whether you work for a company, all types of communities, political campaigns, universities and all sort of business. Crowdfunding opens many doors for fundraising and creates an online community of people who want to give and share.

Why crowdfunding? …why NOT?

It is true democracy in practice. Crowdfunding enables you to realize your goals without some of the unnecessary hassles and it eliminates:
1. Having to get a bank loan and pay high interest rates.
2. Having to borrow money from friends and family to launch ideas.
3. Having to pay out huge dividends on your business.

So, why should companies use crowdfunding to raise money?

  • Crowdfunding has very low fees and 0% interest.
  • No risk, meaning if the project fails, you don't go bankrupt.
  • You dont have to deal with a strict corporate institution like the banks are
  • You know your contributors are interested in your product before you launch, and they will help you promote it end sell it. All of your contributors want to see you succeed. Banks don't provide community or crowds.
  • There are no deadlines, meaning less stress.
  • It's humane

When Crowdfunding doesn't work… what does that mean?

A few common examples of when crowdfunding doesn’t work:
1. the concept is bad
2. the campaign is running either too short or too long
3. the campaign has zero appeal
4. the campaign does not resonate with prospects

Why you should be a site owner instead of using other crowdfunding site

As a site owner has the power to control their own site and which campaigns to approve. Crowdfund something you're passionate about. Your success if the success of your users, it's a win-win deal. How great is that?!

Choosing the right crowdfunding platform is definitely a crucial step. There are a few white label platform to choose from out there. You should always take your time to do some research, and check what each company offers. You might also check what benefits the company can give you and if the price they offer is worth the money.

We have been searching and trying out different white label platforms, and it's no doubt that we think CrowdfundHQ offers one of the most affordable, customizable and easy to use platforms out there. If you don't believe us, try us out now.

So, let's face the facts…

Not everything can be crowdfunded. The best products are the ones with a community of people who deeply wants it. With that said, crowdfunding can really be effective, if you're engaging and know what you're doing.

Tell the story of your project, and don't forget the presentation. Think things that move people into placing their faith in you. Be passionate about making people happy. It starts with fulfilling their expectations. Give people reasons to care and share.

Remember that crowdfunding is hard work, but if you prepare and execute the plan properly, there's nothing that says you won't succeed.