Crowd funding, as its name says, is the funding or investment made by the public to start a project or a business. It is a practice of raising capital for a venture by collecting small amount of money from a large number of people. This collection will be done mainly through internet. Crowd funding thus helps emerging entrepreneurs to achieve success. It should be noted that crowd funding is not only used for business purposes but also for disaster relief, political campaigns etc. It removes the need for formal applications and sanctions for fund collection. Apart from the conventional ways, it facilitates more participation of public through internet platforms.
There are many internet platforms which facilitates crowdfunding. Some among them are Kickstarter, IndigeGoGo, GoFundMe, ChipIn, RocketHub etc. In these platforms the project creators or business person can create a profile which includes the details of the project, a short video relating to that, the reward for the donation and related images. This is to convince the viewer about the project and its creator. Also there should be a fairly good explanation about the need of the project which compels the people to make their contributions. The popularity of the project also matters a lot. In the platform, the contributions earned till then from the public should be specified which acts as a catalyst for its acceptability
It should be noted that crowd funding is not as easier as it thinks. A great amount of work lies behind it if you are really sincere about your success. If people think they should join you for your project, then there should be a fairly good reason to appeal them so that they invest their hard earned money in you. For that the campaign should be well defined, updated and attractive. As mentioned earlier, videos can play an important role here as people are more interested in visual media than reading. Proper online communities and social networks can influence this largely.
As crowd funding is a two way money making prospect, people will be interested in investing. Also as it provides a risk free method to earn money, crowd funding ultimately becomes a crowd puller. Moreover it can provide life blood to struggling business men to come up with new innovations and ideas and make them a reality. In this way, the economic balance is also maintained even in times of slowdown which can drive the country and its people to prosperity.
(SEO Expert and Content Writer)