Navigating The Sea Of Crowdfunding: How To Pick The Right Platform For Your Brand

Choosing the right crowdfunding platform for your business or project can be an overwhelming process. At face value, many of the popular sites can look identical, and the numerous factors involved can turn this into a complicated decision. The first step in choosing a crowdfunding platform is to ensure that you have a solid idea that will appeal to the crowdfunding model.

It’s helpful to keep in mind that people tend to pledge money for three different reasons:

1. They relate to the message or cause behind your project

2. They connect to the creative presentation of your materials

3. They are interested in a physical aspect of your project, i.e. the rewards

Before you create your campaign, its important to ask yourself these questions:

Are you trying to raise funds for a specific purpose?

Do you have a clear idea of what you will do with those funds, once received?

What genre does your project fall under?

Why should someone unfamiliar with your brand support your campaign?

Are you willing to put yourself out there and fundraise your heart out?

Once you are confident in the message of your pitch, and have gone through your project checklist, you are ready to choose a platform. The first thing to consider is the possibility of partial funding. While this may seem like a no-brainer at first, this is actually one of easiest ways that small businesses can fail. If your product requires $10,000 for production costs, and you only raise $2,000, you might not have enough capital to fund the orders you committed to. Since you committed to those orders, you’ll be obligated to fill them, even if it means paying out of your own pocket. It’s also important to think of the people you are asking for money. Consumers may be hesitant to give money to a company that is not guaranteed to meet its required funds, since they are incurring more risk with their pledge. This could mean a huge loss in pledges for your campaign, just from a security standpoint.

[via Forbes]

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