More businesses than ever before are turning to crowdfunding to attract investors to their startups, but does it have a place in the Internet Marketing space?
So what exactly makes crowdfunding such an attractive alternative marketing option? Also what can Digital Marketers learn from this latest online phenomenon?
crowdfunding refers to social lending, peer to peer lending and seed funding. Simply put it is when individuals pledge money to a company that’s pitching their idea. The financial requirements are made clear for all to see, and once the target is met the money that has been pledged then becomes available to the business.
Why Choose crowdfunding?
crowdfunding has become part of popular culture. People are no longer purely interested in aesthetic creativity, but also in the interactive element. crowdfunding uses the Internet to talk to thousands, if not millions of potential funders.
It gives businesses and entrepreneurs the perfect opportunity to connect with their potential investors. Rather than seeking investments from a few people for a large sum of money, companies are able to reach out to an unlimited number of potential investors for smaller amounts of money.
So what can the Digital Marketing industry learn from crowdfunding?
crowdfunding is an effective way to promote your business message, increase social presence and boost your target audience. By taking the principles used in crowdfunding and using it in their campaigns Digital Marketers can tap into another source of promotion.
Kickstarter is one of the earlier platforms and has experienced strong growth over the years due to its successful campaigns. This platform is best suited to creative projects looking to raise capital through donation-based funding.
Unlike Kickstarter which remains focused on creative projects, Indiegogo approves donation-based campaigns for almost anything – from music and charities, to personal finance and hobbyists. Indiegogo has gained a huge international presence due to its flexible approach to fundraising.
Crowdfunder is best suited for those looking to raise investments, not rewards. It has one of the biggest and fastest growing network of investors of all the platforms. Crowdfunder offers an alternative investment opportunity from the likes of Kickstarter and Indiegogo, giving potential investors the chance to enter a more formal arrangement.
RocketHub is a donation-based platform serving a variety of creative projects. The company’s FuelPad and LaunchPad programs help campaigners connect with potential advertisers and marketers and collaborate for the success of a campaign.
Crowdrise is a great platform for donation-based funding for causes and charity. They have established a large network of fundraisers looking for the next big cause to back. Their unique Points System tracks and displays how much impact members and organisations are making through their donations.