Donation Crowdfunding
When donors do not receive any kind of financial or material reward, we speak of donation crowdfunding. This is usually done for disaster relief campaigns, charities or non-profit organizations. Of course, it is more difficult to convince people to donate without receiving anything in return in the case of purely commercial products or services. For this reason, most companies opt for a type of crowdfunding based on rewards or investments ( equity ).
Reward Crowdfunding
In this case, the public contributes to your cause in exchange for a reward. Typically, the israel telegram mobile phone number list reward is the product or service itself that you are trying to fund. This is a very popular approach, as it gives you the ability to incentivize investors without incurring extra costs or having to sell shares in your business.
Investment or equity crowdfunding
Unlike donation- or reward-based crowdfunding, equity- based crowdfunding allows contributors to become co-owners of your company by exchanging equity for shares. As equity owners, contributors receive a financial reward for their investment and ultimately receive a share of the profits in the form of a dividend or distribution.
HQ Blog Crowdfunding Inline1
How do you start a crowdfunding campaign?
Choose a specific product or service to start your crowdfunding campaign. People prefer to donate money for tangible items , rather than vague or unspecified ideas.
Next, target your campaign to a community. Your campaign is connected to the backers who will eventually become your customers. They have to want your product or service, so you need to offer something that doesn't exist anywhere else. If you don't have a community to target your crowdfunding campaign to, it will be impossible to raise money.
After you've developed your big idea with a specific audience in mind, you'll need to choose a platform for your campaign. This isn't an easy task, as there are numerous options and each has its own rules. Some platforms let you keep all the money you raise, while others only let you access the amount raised if you reach your target figure. Some platforms are dedicated to creative projects and business ideas, while others are more suited to presenting initiatives from entrepreneurs.
