With all the hub bub going around online and off about crowdfunding, you’d think everyone and their brother would know what it’s all about.
There are a LOT of people that have not heard about, have no interest in, just don’t get, or haven’t been involved enough to understand the concept of crowdfunding.
So what’s the best way to explain crowdfunding to those that are clueless?
The way I like to describe it, and people immediately relate to, is to point to political fundraising campaigns. Most everyone knows that politicians raise funds to help them with their bid to become the next… President… or whatever. Especially now.
Well, raising funds in hopes of coming through with a particular outcome (like funding an idea), is what crowdfunding is all about. Only, with crowdfunding, it’s not just for politicians.
It’s for those of us with ideas that need funding. We call it “Bringing Ideas to Life.” Those of us who are not rich enough to be approved by today’s banks for loans, that is. (Doesn’t it seem as though you need to prove you DON’T need the money to get a loan these days? Or has it always been that way?)
Crowdfunding is about bringing a whole bunch of people together (family, friends, fans, followers and a lot of strangers) to help support your brilliant idea. A whole bunch of people contributing small amounts of money ($5, $20, $25 and up) until it adds up to your funding goal (or more than your goal).
You may have heard that some people are receiving millions of dollars in contributions. It’s true, but not typical. Most projects receive $5,000 to $12,000, which is usually enough to get going. One of our project owners onCrowdFundingLIVE.com raised over $20,000 for her independent film. Another raised over $5,000 to produce her next music CD. Those are more typical examples of results.
People contribute for different reasons but mostly for rewards, which are “gifts for giving” type things. Check out our project site to see what rewards our projects are offering.
So, what do you think? How would you describe crowdfunding to someone that didn’t know about it? Is crowdfunding something you’re interested in?
Let us know your thoughts…