CrowdFunding is a relatively new method of raising funds for a new business venture. People contribute money
to your business start-up because they just like what you’re doing, enjoy being part of something innovative, or like the rewards you are offering. Most crowdfunding projects raise $5000 to $25,000.
The old days of going to the bank or trying to raise venture capital are fading. More innovative methods are helping launch the streamlined, creative businesses most popular today. Several members at 48Days.net are raising funds through CrowdFunding. Your challenge is to make it interesting enough that other people want to be involved.
Love Cupcakes in San Jose, CA raised $8000 for their startup. For a $50 donation they would send you a dozen cupcakes. For $500 they named a cupcake after you. Sure I might send in $500 of my own money, knowing that people walking in the door of Love Cupcakes could choose the “Dan Miller” cupcake.
Here are the most popular “CrowdFunding” sites. Each name is hyperlinked for further exploration. You’ll find some cater to artists, designers, inventors, musicians, social entrepreneurs, and more.
KickStarter When Donald Miller announced that a movie based on his book Blue Like Jazz had been put on hold because there was not enough funding, a couple of fans decided to take matters into their own hands. They placed a notice on KickStarter and said they wanted to raise $125,000 to complete the movie production. As of 02-02-11 they have $345,992 pledged. Check it out – Blue Like Jazz The Movie
Profounder — this one allows people to give you money, but you show them how they will be repaid. So the money is not just a gift – but an investment. You don’t give up control or equity, but you do repay the money. A much better scenario for everyone than just hoping people will “give” you money.
These organizations connect people who want to invest money with people who want to borrow money
Here’s a training program to understand crowdfunding.
Crowdfunding Formula – Dave Lavinsky $97 for training program
This is a new phenomenon. Get creative and then let us know about your successes.
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