Crowdfunding is a way to attract funds from a wide audience for some purpose. Someone starts a crowdfunding campaign to fulfill a dream, while others raise funds to pay for studying at an expensive university or moving to another country. It is also quite common when a person or a team has an idea to create a product that needs a large amount of money, which they simply don't have.
Users can donate money, from a few dollars to thousands of USD, in order to contribute to the cause. This is usually organized through various internet platforms, such as specially created crowdfunding sites.
Let's take a look at the most well-known crowdfunding websites nowadays:
- Kickstarter – A very well-known platform for creative ideas to share with others: pieces of art, crafts, comics, music, film, photography, technology, and much more! You need to present a plan of action and describe the final result, present a prototype if you are creating a product. It is prohibited to raise funds for charitable purposes or to seek investment by offering a share in the product. You pay Kickstarter 5% of total funds raised in case of a successful campaign. In case the campaign doesn't reach the goal, you get nothing. Also, there are transaction fees.
- Indiegogo – Very popular among tech entrepreneurs to obtain starter capital. Campaigns aimed at satisfying personal needs are prohibited. Аs in Кickstarter, you can't offer a part of the profit and a share here either. In return, you can offer perks such as themed t-shirts, mugs, a movie ticket on the company-s account, or a product prototype. In general, the platform fee here is 5% (plus transaction/transfer fees). However, Indiegogo provides two options in terms of achieving the result: fixed funding (you don't get the raised money if you don't reach your goal), flexible funding (you get the raised money even if it-s less than the target amount).
- GoFundMe – The popular crowdfunding platform to raise money for personal, friends, family, or complete stranger needs: medical expenses, education fees, funerals. Memorials, etc. Nothing is for sale here – the site works on a charitable basis. The platform itself is mostly free (check here for country-specific conditions), but there are also transaction fees here.
- Patreon – A platform for creators of digital content (musicians, bloggers, podcasters, writers, and journalists). Тhe artist gathers a network of patrons who pay for each post or purchase a subscription. The platform fee is 5-12% of monthly income plus processing fees.
- Causes – The best one for nonprofits focused on social, cultural, political issues. Here you can create a page on a topic of interest to you, post content, and gather a community of like-minded people.
How to Get Funding Fast?
We talked about several crowdfunding platforms where you will have to spend time and effort to get funding – they are not designed for quick results. If you need a faster funding option, you can use the services of Payday Depot.