The Crowdfunding Hustle

   Maybe your have not heard yet but crowdfunding globally is valued at $32 billion and rising. If you have not heard of the term crowdfunding don't be discouraged because crowdfunding is just another name for fundraising. Someone has a project they would like to start but lack the funds necessary to put their plan into action. Typically they use one of the 3 major platforms. Kickstarter, Indiegogo, and Gofundme. They all have their pros and cons while Kickstarter is the most widely used platform if you do not reach your campaign goal you get nothing. Indiegogo will allow you to receive  funds even if you do not reach your goal however they will charge you a higher percentage than if you did reach your goal, that usually jumps from 4% to approximately 9%. Gofundme is geared towards personal campaigns such as school loans, a trip abroad or even the burial of a loved on. Kickstarter and Indiegogo are for more artistic and business  endeavors such as a short film, creating music, technology, social entrepreneurship and small businesses. Each platform charges approximately 3%-5% per transaction.

  Although crowdfunding has become the go to source for those trying to raise funds for various projects, the majority of these campaigns fail. Like vultures circling the dead, crowdfunding campaign services have popped up like California wildfires, offering a la carte service that range from $20 to $1000's of dollars. These companies are a dime a dozen all claiming to be the best, yet the success rate for campaigns are still hovering around 30%. This is the reason why you do not see any of these companies promoting to the mass media on a consistent basis. Would you want to promote that you are a failing business  model?

  These companies sell the public on the fact that they will promote your campaign over various platforms, offer 24/7 contact and help with campaign development. This all sounds great, but if you are not properly educated on how crowdfunding works and why most campaigns fail these services mean nothing. Not to mention they leave out one LARGE glaring statistic about crowdfunding and that is most people have no idea what crowdfunding is and how it works, so if you are only able to market to 40% of the public that means the larger segment of society has no way of backing your campaign or starting a successful campaign of their own. So if you are thinking about starting a campaign or if you simply want to learn how they work please review the information I share on my website and facebook group (Entrepreneurial Advancement Group). Being part of a group that understands how crowdfunding works, give you a better opportunity to not only run a successful campaign but you can also build business relationships with members that can offer their resources to assist you in reaching your goals.