If you are in the process of launching a crowdfunding campaign, one of the challenging steps is selecting the right platform for your project. Having many to choose from can either be a curse or a blessing. For some, having too many choices adds to the difficulty. At first, you might think that all these platforms are alike in many ways and perhaps choosing one over the other won’t make a big difference. Unfortunately, this assumption cannot be farther from the truth. Your success also relies on finding a platform that suits your campaign and best fits your idea.
Since crowdfunding platforms attract investors, it is vital to keep in mind that crowdfunding users donate money for a myriad of reasons:
They connect and relate to the product or campaign you are launching.
They are attracted by how creative your materials and tools are.
They donate money because of the reward you are offering.
In selecting a crowdfunding platform, there are essential questions you also need to ask yourself. First, what is the purpose of the funds you are raising? Do you have a business plan or strategy for the funds once you reach your goal? How much effort are you willing to give to promote your campaign?
The genre your campaign falls under
Most crowdfunding websites support all kinds of campaigns and categorize them according to specific genres. But if your campaign falls under a particular category, you can find a crowdfunding platform that specializes in promoting campaigns under the same type. For example, some sites support projects aimed at producing eco-friendly products and services. There are also crowdfunding sites that cater to charities and other causes.
The level of support you get from the platform
Different crowdfunding sites offer different levels of support for creating a project page. Depending on how much help you need, you can choose a platform accordingly. You can find a platform that can help walk you through the entire creation process, while other platforms give project owners the option to have complete control over their campaign.
What about partial funding?
You need to take into consideration the possibility that you won’t reach the goal amount after running your campaign. If you don’t raise enough funds to produce your product, your project will fail, and you might not be able to fulfill the promised reward for your backers. You need to take this possibility into account and prepare for the possibility of partial funding.
Type of investors you wish to attract
Crowdfunding sites can either have individuals, organizations, or seasoned investors pledging money for a campaign. Depending on the kind of project you are planning to launch, you also need to consider what type of backers you intend to attract to your campaign.
It is no longer a surprise that joining a crowdfunding site to launch a campaign does not come for free. Before you select a platform, you also need to verify fees associated with the service such as commissions, transaction fees, and success fees.
Published by Zachary McGavin