Crowdfunding What It Is?

As you rightly guessed it is funding from an individual for a cause or for something in return. This method is usually adopted by people seeking funds for a venture or donations for a cause.  The usual method of accessing the target audience is social media marketing. 

The first step to start a fundraiser is to make a page on sites like crowdfunding.org or kitto.org and start promoting it. This method is also adopted by budding artists, small-time filmmakers, designers, and so on. The projects have been used to gather funds for expeditions, medical reliefs, and social benefit projects. The scope of accumulating a large number of funds from the public is vast and many mediums have yet to be explored. The funds accumulated are from a large number of people hence the name.      

The concept can be promoted through fundraiser events and mail-order subscriptions. But this alternative financing activity is purely Internet-based and depends largely on social media for attention in order to achieve high gains. 

There are many types of crowdfunding:

Donation-based funding is basically for charities.

Equity-based funding pertains to allowing equity for unsecured loans so obtain. The investors benefit whence the project is successful and equity values rise. 

Debt-based or P2P (peer-to-peer) funding. In this case investor gain from the interest accrued.  Here borrower application is reviewed by an automated system and the creditworthiness is gauged. The interest rate applicable is also ascertained by the system. 

Several platforms are in the picture now. Some are global while a few are limited niche segments.

To learn in greater detail click on the crowdfunding link.   

Examples

Digital Donations 

Digital Donations Video

The marketing and propaganda are mostly done using email and, SMS marketing and various content and video platforms that social media offers. The target audience should be accurately targeted for success in the campaign.