Crowdfunding is relatively new trend online, and the way it works is pretty simple to grasp!
Crowdfunding = Free Money?
I'm going to assume you haven't discovered crowdfunding yet...
If you have, then this article isn't going to teach you anything you don't know, but the link at the bottom probably will...
is relatively new trend online, and the way it works is pretty simple to grasp:
Let's say you have an idea, a project, an album, an invention, or some THING you want to work on, but you don't have the cash in hand to make it happen... So, you've got some choices:
1) Save up. It's tried and true, but it can take months or even years to save up the dough you need...
2) Borrow. You can get a loan, investments, or just borrow money from friends and family, but you'll have to repay it.
3) Beg / Steal. Most of us are too proud or civilized to go this route, but in a pinch, people have been known to do both...
Crowdfunding is pretty much like an amalgam of the three -
You start up your crowdfunding project on one of the major crowdfunding platforms like Kickstarter.com, IndieGoGo.com or Quirky.com, and drive some social traffic to it.
That means, you'll be asking people in your social network to go visit your crowdfunding
site, where you expalin what you want the money for.
Then, depending on if they're inspired by your idea and their ability to help out, they make small donations (usually in the range of $1.00 - $4,000.00) to your crowdfunding project.
In exchange, you can offer donors cool prizes and gifts so they get something out of the deal.
is an exciting new phenomenon because it lets anyone raise funds, much like a political campaign, but for cool projects, new business startups, music, art, invention, research, journalism, and probably a thousand other things.
If your idea is something you can get other people excited about, you can probably get funding to make it happen.
So, to answer the question - "Is crowdfunding basically free money?" the answer is "Yes, and No..."
Yes, you can get money that you don't have to repay to make your project happen.
Yes, it's usually free (or very cheap) to start up a crowdfunding project on the major crowdfunding platforms...
But NO, you don't just get free money.
Once you have your funds, it's up to you to honor your word and make your project happen. After all, crowdfunding works by letting you turn your social network, your friends, family, followers and fans into donors...
And if you don't honor your word and use the money the way you said you would, it's THEM who will be upset. And personally, I'd rather have a bank breathing down my neck than outrage my closest of kith and kin.
To learn more about the exciting and expanding world of crowdfunding, head over to the link below - you'll get a free audio interview with a crowdfunding expert that gives you tips, tricks and resources for sucess with crowdfunding: