How to Choose the Right Crowdfunding Model for Your Business?
Crowdfunding has become a rapidly changing trendsetter and has placed itself on the edge of today’s world. In case you are looking for an extra income to take your business to the next level, then the crowdfunding platforms will be a great option for you.
Crowdfunding happens to be the perfect tool for charities and social entrepreneurs in raising more money and outshines as a way in experimenting the new methods of addressing the social challenges. The main challenge that every entrepreneur meets is in finding out which crowdfunding platform is best suited for their business.
Crowdfunding Models for Your Business
The foremost step in selecting the right crowdfunding platform is to make sure that you have a rock-solid idea that matches to the crowdfunding model that you choose. There are mainly four basic types of crowdfunding platforms:
In Equity-based crowdfunding the investors spend a large amount of money which they normally receive its interest in the company or project that he pledges. As a result, this type of crowdfunding is normally used for raising money for the launch or growth of a company. Some of the most popular sites include the CrowdCube, EquityNet, Rock the Post and so on.
Here the donors generally donate small amounts, that are normally used for non-profit organizations be it for any project or charitable causes. The two popular crowdfunding platforms are GoFundMe and Crowdrise which are also followed up by other donation-based crowdfunding websites.
This is one of the most popular crowdfunding platforms that has become an attractive fundraising option for the small businesses and creative projects. This is preferred to be an easy method as compared to the traditional business finance being more efficient and easy to launch and manage the sites. The popular sites include Kickstarter and Indiegogo.
This is a peer-to-peer lending in which the entrepreneurs raise funds as loans that will be paid back to the lenders within the estimated duration of time along with the interest rate. This acts as a major platform in connecting lenders and borrowers.
Now that you have got a glimpse of the popular crowdfunding models you will be able to figure out which one suits your project or business and go ahead with it.
Crowdfunding your Business Clearly
With regard to this, there is a cutting-edge Kickstarter clone script available in the market that will surely give the big hit in stepping into the crowdfunding world. As you are now ready to start crowdfunding, here there are some points that need to be looked over before starting your own crowdfunding project:
Right time crowdfunding
Businesses involve right time funding at multiple stages for being successful. So always be alert at picking the right time to avoid being exhausted during the process.
Follow the rules
Most of the projects get turned down by the crowdfunding sites. This is due to the reason that they fail to stick to the rules that are being laid down by the sites.
Protect your idea
Follow proactive steps by yourself as most of the crowdfunding sites do not adhere to protect your copyrights.
So I conclude here by saying that it mainly depends on your comfortability and on the type of the business that you are intending to take up. Among all these the Kickstarter is found out to be the biggest platform which assures to give you maximum chances in raising the amount you need. Start building such a platform using Agriya’s ready-made crowdfunding scripts.