A Crowdfunding Guide: Effective Crowdfunding Setup (5 Steps You Need To Take)
One of the keys to an effective crowdfunding setup is to choose your funding site carefully, unless of course you choose the other option of creating your own crowdfunding website.
Considering the fact that each of the major funding websites has their own set of rules and fee structures (you can avoid all fee costs if you set up your own WordPress website using a special crowdfunding plugin) , there are five basic steps to configure Improve your project.
5 steps to configure your campaign
1. The first step in setting up your project is to include detailed information about yourself, what your project is about, and how much capital you will need to complete your project. Another tip is that it is a good idea to include detailed information about what you will be using the money for.
2. You will need to set a time limit for your project. This limit can range from 1 to 90 days. Considering that the longer your project lasts, the more money you are likely to receive.
3. It is always good practice to start promoting your crowdfunding project early to get as many sponsors as possible.
4. As sponsors donate funds, their money will be placed in an escrow account until the end of your project date.
5. As soon as your project has reached its due date, the funds will be released to you. The exception to this is that (with some crowdfunding sites), if you don’t reach your goal, you won’t receive funds. This is why it is always advisable to look at all the options, including obtaining your own crowdsourcing software add-on.
The best crowdfunding sites
There are many different funding sites available, the best way to find the latest and most popular ones is to do a search for ‘top ten crowdfunding sites’ this way you will find the most up-to-date sites available.
Main points to consider
As you have read before, there are many different points to consider when choosing the right financing site, I will detail a little more:
1. One of the main points to consider is the charges that the website will take from your project once it is finished. This can vary from site to site, but a general rule of thumb is that you will lose 5-8% on fees. It’s always a good idea to keep this in mind before setting up your initial campaign.
2. Another important point to consider is whether the crowdfunding website will in fact not give you any of the funds in case you do not reach your goal. One idea here is to go with the site that will have slightly higher fees, but will actually give you all the funds it raised, even if it doesn’t hit your goal (my preference).
3. Payment options are always good to consider, certainly an advantage if the website accepts PayPal payments and even better if you also get your funds paid in PayPal.
4. My favorite option, of course, is to look for some software that can easily set up your own crowdfunding website with a few clicks of the mouse. This type of system will not charge any fees, you pocket the lot!
I hope A Crowdfunding Guide has been helpful to you.