Things to Know Before Starting a Crowdfunding Campaign

Things to Know Before Starting a Crowdfunding Campaign

The world has changed a lot financially, and if you are looking for great means to raise money, crowdfunding is one option you should consider. It can easily be accessed, and when used properly – it can help you to attain your crowd source funding goal quite easily. However, it is important for you to know that this is no 1-2-3 process, and raising money from a crowdfunding platform is hardly a cakewalk. Find out a few things about this alternative way of gathering finances before starting your own campaign.

All or Nothing

People who are familiar with fundraising ideas and online fundraising sites are well-aware of the term “All or Nothing”. Simply put, this is the approach followed by Kickstarter, a top crowdfunding platform on which project creators can get the funds that have been donated by contributors only when their fundraising goals have been satisfied. On the other hand, there is another top platform Indiegogo which has the Fixed Funding approach, similar to the “All or Nothing” model, and also the Flexible Funding approach for creators which lets them get the money irrespective of whether or not the objectives are being satisfied.

Fee Policies

The policies about fees also differ across online fundraising sites. All crowd funding sites tend to charge a fee of about 3 – 10% for campaigns which reach their objectives. Some sites do not charge any fees and only ask for a commission once a campaign reaches its goal successfully. The fee structures differ from one crowd source funding platform to another, and you need to choose one according to your budget and requirements. Make sure to check the fees section of the crowd funding sites you intend to use, before actually signing up with them.

Acceptance of projects

There is also the thing about the acceptance of projects that you have to consider. Each crowdfunding platform has its specific rules regarding the type of project that it is ready to accept. Even when a crowdfunding project is not approved, its creator might not always be informed why it has not met with approval. The strictness with which such fundraising ideas and policies are dealt with differs on varied conditions. Sites like Kickstarter tend to be very strict, and approve projects only after monitoring them according to its policies and regulations. However, Indiegogo allows submission of any kind of project, barring only a few on grounds of ethical or legal reasons.

Keywords: Crowdfunding, fundraising ideas, crowdfunding platform, online fundraising sites, crowd source funding, crowd funding sites

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