Crowdfunding is a way of raising money to fund the creative projects and businesses. People usually collect money from a lot of backers through online crowdfunding platforms, such as Kickstarter, Indiegogo, Crowdfunder, GoFundMe.
Three Most Common Types of Crowdfunding
There are several types of crowdfunding, among which three types are most common in practice.
- Reward crowdfunding. People donate to a project or business on one crowdfunding platform, expecting to receive a non-financial reward in return, such as products or services.
- Equity crowdfunding. “Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital market. “(wikipedia) Backers give money to the business and gain a samll share of the business. When the business succeeds, the values of the business and the share both increase so that the backers get more returns than their investment.
- Peer-to-peer lending. People lend their money to the business or the individual on the condition that the money will be repaid with interest, which sounds like a loan, borrowed from a lot of online investors rather than from the bank.
Do you know the best thing about crowdfunding? It evokes interest among the public and assists the fundraiser in marketing his/her products or services while he/she gets financial support. Moreover, it can help the business or the individual to test whether the product or service is in high demand in the market before its launch.
What Can You Do to Make Your Crowdfunding Successful
Before launching the crowdfunding project, what should you do in the right way?
There are three core elements in crowdfunding: the project, the backers and the goal. The project is what you are going to raise fund for, a new product or service. The backers are those who support your project and give their money by the online platform. The goal is not only the amount of money you want to raise, but also to connect with your backers and first customers and to validate the project.
You have to put up a detailed description of your projects on one crowdfunding platform, which including the goals of your business, your commercial plans for making profits, the amount of money you need and the reason why people should support your project and business.
To convince people to support your project and business, you can build a campaign page with an explanatory video, images, and texts. And you can share the page on social media, like Facebook, to make more people know your campaign and support it. The more backers you get, the more you are likely to gain the amount of money you want to raise.
Keep in mind that the amount of money should not be set too high so that it can be realized. Otherwise, you can get nothing if the goal is not achieved in some platforms. The money will return to the backers and your project is reduced to failure.
What Chinadivision Can Help You with Your Crowdfunding Projects
Chinadivision has more than eight years’ experience in delivering crowdfunding orders, which has benefited countless crowdfunding initiators. When your products are ready, you need to send them to thousands of backers all around the world. Chinadivision can customize your packages with your logo and offer you professional, reasonable and 360-degree comprehensive protection for your crowdfunding packages to make sure they are delivered to your customers without damage. Chinadivision’s diversified delivery channels and competitive prices to provide you with almost 100% high delivery rate.
In conclusion, more and more crowdfunding initiators choose chinadivision to fulfill their crowdfunding orders and chinadivision gets more and more happy clients of crowdfunding projects. Thanks for your reading!