People who are still new to Crowdfunding, either as an investor or as a campaigner, they often wonder how people put their hard-earned money into someone else’s dream.
Obviously, it is surprising when you fund a stranger’s dream project, but crowdfunding is a proven technology today, which has come a long way. Every individual who has an idea that can bring a change for good or solve a need at a reasonable cost should never shy away from approaching the crowd for help.
The world today is driven by innovation. It is in trend to take chances. People are open to taking chances for a cause or business they approve of. However, it is suggested that one must take calculated risk for their best interest.
Here are the key reasons people get encouraged to back a campaign:
Entrepreneur’s Fraternity is a sect in society who has entrepreneurship in their DNA. They are excited about every new thing. They see an opportunity in every challenge. These people are always on a look out for a campaign that has the potential to make a difference. If they find a certain project promising, they don’t think twice before entrusting their money to it.
Many times people back a campaign because it has a big name backing it. For example, if Tom Hanks is associated with a cause, there would be so many people who would follow the herd. In the same way, when big brands like Whirlpool or Coca-Cola shoot a campaign, people go by their glorious track record and flawless reputation and put their hard-earned money on the campaign.
They like your product
Crowdfunding is definitely a tool for those who have a revolutionary product. Therefore, if you have a product that is fantastic and a bit more than that, rest assured you will get loads of pre-orders. Coolest Cooler campaign on Kickstarter is one such example. People loved the product and campaign got tremendously overfunded.
Reward points are the most exciting part of any campaign. It can be a digital hi-fi, or a badge, or a t-shirt. Whatsoever it may be, if the backers feel that they are getting a reward which is worth the money they are putting in, they will not shy away from putting their money in.
Your story is compelling
Crowdfunding is famous for funding concepts. In case, the story is convincing enough, ideas that are still in the womb too, receive awesome backing. You must convey your message in the most persuasive style.
They relate to the cause
Many people choose to fund a campaign because they can relate to that cause. That happens mostly with the donation-based crowdfunding campaigns. Also, some people are art lovers and lavishly fund music and art campaigns. What they derive out of making such donations are satisfaction and happiness.
They are looking for investment options
Debt and Equity crowdfunding is one tool that is famous amongst people who want to place crowdfunding as one of the elements inside their investment portfolios. People get to earn a fat double-digit rate of interest out of Debt Crowdfunding. On the other hand, through Equity Crowdfunding investors get a chance to own the stakes in most promising startups and SMEs around.
This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com.
CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]