One of the most popular ways to obtain funds for a business is to engage in crowdfunding. This is a fairly new financing option for small business owners. While it can be a successful way to generate funds, you have to know which crowdfunding platforms are the best to use.
The best-known crowdfunding site is considered Kickstarter. It has only been running since 2009 but has helped users raise billions of dollars since. It works by choosing a financial goal to meet. You also have to be able to raise the money in a set amount of time. When you have an idea for a Kickstarter campaign, you must get approval from them before you can set up and begin running your campaign.
Donors are each gifted with a reward based on how much money they are willing to pay. One downside of using Kickstarter is that unless you can reach your financial goal before your campaign ends you don’t get to keep the money. Even when you do meet your goal in the designated amount of time, it takes two weeks to receive the money.
For more flexibility in your campaign, consider using Indiegogo. While it follows the same basic structure as Kickstarter does it doesn’t only have the limitation of having to meet your financial goal. There are two funding options when you use Indiegogo. They are flexible and fixed. The flexible funding campaign is what gives you the freedom to take the money raised even if it doesn’t meet your goal. But if you prefer the Kickstarter model, a fixed funding option is your best choice. If you use Indiegogo you’ll have to raise at least $500.
If you are raising funds for a non-profit project, one crowdfunding choice is Causes. Due to paid ads running on the site, you can always use the services of the Causes crowdfunding for free. You can use Causes on social media to bring more attention to your fundraising efforts.
For more information on the best crowdfunding services, please contact DAL Commercial Capital.