Reward based crowdfunding

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What is crowdfunding?

• Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors.

• It describes the collective effort of individuals who network and pool their resources, usually via the Internet, to support efforts initiated by other. people or organizations.

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Types of crowdfunding

Reward Based Crowdfunding

• Reward based Crowdfunding is asking a crowd of people to donate a defined amount of money for a specific cause or project in exchange for various rewards.

How does reward based crowdfundingworks?

Innovative Idea

• We must focus on new and creative ideas which is the most important skill while starting any new business.

• To drive innovation in your idea, make a team having the ability to think differently and try to generate the new ideas that can make history.

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Create a Campaign

An attractive campaign must consist of:

• Right Content – The project creator must have to check the information to be displayed on the crowdfunding platform. Each section must be properly checked and corrected before submitting it on the website.

• Visual Appeal - A picture contains thousand of words in it. Images and photos must be used in an effective manner to describe the objective of the campaign so that the campaign looks more interesting to the people.

• Engaging Video- Your video is likely to be the first thing the funders look at. Think about the perfect look and feel in order to attract funders. Remember that above all, the video should reflect you and what you are trying to do.

Engage Crowd

• You must create a buzz of your product and services. This can be done by communicating with your supporters, distributing press releases, creating an accessible media page and being strategic on social media.

• This process will help you to spread awareness among the potential investors for your new business product and services.

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Deliver Rewards

The ideal rewards are going to be items that are naturally generated by the act of moving forward with your project and that can be transferred to benefactors at little to no cost.

Limit Premium Rewards:

• If you decide it would be beneficial to offer a few premium rewards that will cost you a little extra in time or effort, then you may want to put some limitations on how many are available.

• Attach premium rewards to higher donation levels and specify that there are a limited number of them available.

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Benefits of reward based crowdfunding

Low Risk

• A successful crowdfunding campaign is about a lot more than simply getting the money you need to move a project forward.

• Going the donations only route is also a way to avoid many of the financial risks associated with using other avenues.

Low Cost

• Most of today’s online crowdfundingplatforms allow you to set up your project and raise your funds.

• They’re highly user friendly and simple to manage, so you save money in labour costs as well.

Personal Connection

• In the age of the internet, people like to feel a personal connection with the businesses, projects, and charities they give their money to.

• Reward based crowdfunding allows you or your organization to actually make that connection with those who are interested in what you’re doing.

• People who feel connected to your cause will be more inclined to help you spread the word, helping you reduce marketing costs.

• They’ll also be more interested in continuing to back you or your projects in the future.

Effectiveness

• While many people do enjoy simply donating money to a cause for its own sake, reward based crowdfunding is as popular as it is because it appeals to just about everyone.

• Taking the time to choose rewards people really want is a great way to make them an offer they can’t refuse.

• It’s also a super way to appeal to benefactors from all walks of life and ultimately raise more money.

• A hundred small donations, after all, can be just as effective as one or two big ones.

Trendy

• Even though crowdfunding is still a relatively new way to raise money for a project, it’s already become incredibly trendy.

• At this point, people are used to hearing about people who are raising money this way and many already regularly contribute to campaigns they find worthy or interesting.

• Supporting artists, small businesses, and other independent entities is an incredibly popular thing to do right now.

Conclusion

• Reward-based crowdfunding is one of the least costly ways to raise capital. Fees are a percentage of the money raised, and businesses may select rewards that let them keep the bulk of each donation.

• Feedback from donors is valuable for future product development.

Thank You