Sunday, 10 May 2015

Looking For The Best Crowdfunding Site

By Toni Vang


Crowdfunding offers a great venue for persons of any walks of life. Musicians can fund their music projects, music videos, and albums here. Charitable foundations can raise funds for their programs. And entrepreneurs can gain capital and even partnerships from one of the crowds. This is perhaps one of the most convenient and fastest way for startups.

Still, some of the persons who engage in crowdfunding are entrepreneurs. This is an effective strategy to establish a position in the chosen niche. The best crowdfunding site will be the one which serves the purpose of the entrepreneur appropriately. It is recommended to look into reviews of these sites because these will serve as heads up on what they are specialized in.

There are sites that welcome even the simplest project proposals and donation drives. And it can be said that there have been many successful attempts to accumulate funds for their cause. Even the simplest school projects can be funded depending on the preferences of the admin of the site. Some of them actually filter the small funding and prefer those that are as big as business funding and equity.

There are two models in crowdfunding namely, rewards oriented and equity based. Rewards is based on the giving of discounts and pre orders for those who are interested to fund. This is particularly applicable to goods and services business. In addition, this is also applicable for musicians who will make the interested crowds listen to their song in full.

On one hand, rewards refer to pre purchasing products and services or pre donating for a cause. One example for this is crowdfunding musicians wherein they will get the chance to pre purchase their demo tapes or records if they will help fund the music video or recording of a new album.

In two thousand twelve, a total of two point seven billion dollars were raised through site crowdfunding. And in two thousand thirteen, it rose to around five point one billion. In two thousand fourteen up to this year, it is still increasing which is why a lot of niche has actually entered into this venture for their business and personal finances.

This is the chance of any entrepreneur, no matter how small the business is, to market his or her new products and services or innovations affordably. This is perhaps the least costly of all entrepreneurial methods. This is also their chance to get some stakeholders and shareholders who are willing to help in the development and success of the launching.

Hence, judging on which one is the best depends largely on the functionality, popularity, and dependability. Others concentrate only on equity while others only on rewards. There are also those that offer both. Some are limited only to business concerns and do not accept personal projects or charity. This is so because they can profit more if business is involved.

There are also others which have established their presence in the international online environment. Most big time providers of funds have accounts in such sites. But they often have multiple accounts. Their purpose is to be able to support businesses which they think have the potential in the market because they are sure that they can also benefit if these companies start to grow.




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