Facebook and Twitter and Instagram. It’s always out there and people are
always noticing it and you get such a wide variety of audience. If I put it in
the newspaper, maybe only a hundred people will read that ad and donate,
but if I put it on Facebook, millions of people can share it and keep on
sharing it.”
Starting a campaign is an easy process; most related websites give
guides on how to create and manage your crowdfundung. Once you have an
idea and know what website you want to use, you create your campaign.
Most advise creating a video for the “pitch.”
Jeremy Ing, of Windsor, says communication from the campaign maker
can be a deciding factor for donors. The more professionally a campaign is
run and the more value his donation will get him, the more he’s likely to
donate. Ing has donated more than $800 to six different campaigns on
Kickstarter.
“(I donated) if they offered a good cost vs. rewards value (and were
from) companies known for quality, ” says Ing.
Crowdunding could be the secret
Crowdfunding can be sorted into four basic types, each with its own
to increasing alumnae donations
terms and standards. Donation-based crowdfunding, like Hewitt’s
fundraiser, sees money raised by the crowd with no expectation of reward.
Reward-based funding is formed when various rewards are given for
different amounts raised and is considered by Fundable.com to be the most
common type of crowdfunding. Lending is frequently used by entrepreneurs
to raise funds by receiving loans from supporters that will be returned
within a set time. And equity-based funding is the most recent type of
crowdfunding to develop; often the time period to donate is longer than the
other three. In this type, people are buying equity in a private company.
Most campaign websites allow a campaign to last for up to 60 days, but
do recommend no more than 40 days. The longer a campaign lasts, the more
difficult it is to keep the audience engaged. Shorter campaigns also reduce
the time commitment necessary for the person who created the campaign.
There are various opinions about the equity based and rewards based
funding because some believe, like Hewitt, that people should be able to
donate without the need for a reward.
“You should feel great about giving just a couple bucks without winning
a prize,” says Hewitt. “But (rewards) provide a really good incentive, so if it
Many crowdfunding projects
works, it works.”
focus on community and urban
Jason Tang, who has donated to three Kickstarter campaigns, said he
renewal
might donate more if the reward is worth it.
Crowdfunding by the numbers
Individuals ages 24 to 35 are most likely to donate to campaigns
Men are more likely than women to fund unknown startups
Those who earn more than $100k per year are most likely to invest in
startups through crowdfunding
As of 2012, there were almost 600 active crowdfunding platforms
July 2014 - The HUB 13