10 Reasons to Use Crowdfunding for Freelancers and Small Businesses
I admit, it’s the newest craze. Everyone’s talking about crowdfunding these days, whether in the written press or on the radio or television…
Ultimately, it really boils down to one of the oldest concepts there is — “we can do anything if we work together.” In other words, if a large number of people individually contribute a small amount, they can achieve great things.
Definitions aside, a crowdfunding campaign is an excellent way to raise funds to develop an idea and gain recognition as a freelancer or a business.
And if that doesn’t convince you, here are 10 reasons that will.
1. No need for banks
You won’t need loans to make your product successful. Crowdfunding will allow you to test concepts, ideas, or prototypes. You don’t have to produce anything until you have the funds!
2. It’s free to try
Trying is free, and so is failing. The majority of serious crowdfunding platforms never even charge patrons if the project objectives are not met within the agreed upon time frame. A clean and safe system.
3. Get market validation for your ideas
How will you know if this is what you want to build, what you want to sell, or if anyone will like it? In reality, no matter how many market studies you have, you don’t know.
The good news is that, through a crowdfunding campaign, you’ll be able to verify whether your product or service is attractive enough to convince a fairly large group of people to pay for it in advance.
4. Showcase your skills
Just as an example to illustrate — Imagine you’re an industrial designer. You create a design product and launch a campaign during the prototype phase, exhibiting your work online. Isn’t that an amazing way to gain recognition as professional?
What’s more, a crowdfunding campaign serves as a great letter of introduction if you’re a startup, as investors love real numbers.
And it’s not just for startups, this pizzeria earned over $10,000 for it’s opening by pre-selling pizzas and merchandising material. Fear? What fear?
5. Connect with a community
A campaign will not only allow you to know whether your product or service has appeal, it will also serve to connect you with people that enjoy what you do. And what greater asset you can have as a creator than contact with a large number of patrons?
6. You’ll raise funds
Don’t forget, financing will be the primary objective. Your campaign may help you secure the first seed capital for your startup. Additionally, it will be a brilliant way to increase your visibility, whether as a professional or as a business.
7. You’ll have future patrons/customers
Patrons are the linchpins of the campaign. Convincing a large group of people to bet on your project with just a concept, an idea, or a prototype is no easy task. That’s why having an entire community of patrons at your disposal is such a major asset; they’ll be your opinion leaders and first customers. With crowdfunding, the client is no longer king, the patron is king!
A crowdfunding campaign is a communications campaign. You are condensing a marketing effort to 30–40 days of non-stop communication. This will provide you with a great degree of visibility.
Whether you’re successful or not, you never end a campaign as you begin it. You’ll always end up in a better position. Your work will have resonated with a group of people, your online presence will grow, and, if you work hard, the press will be interested in publishing stories about you.
9. It will put you to the test
I’ll admit it, crowdfunding is not easy. Sometimes we come to the conclusion that we can raise millions with little effort because the media tends report on only the most spectacular cases. But let’s not fool ourselves, the majority of projects set a goal of raising less than $10,000. Which is why it is paramount for the platform that you choose to be concerned with providing you any guidance you may need.
If you’re a part of an entrepreneurial team, crowdfunding will serve as an interesting stress test to verify whether all members of the team are 100% on-board with the project. There will be a host of tasks that must be repeated and will require a lot of effort to complete. Your team’s commitment will be put to the test.
If you’re facing the risk alone, it’ll be the definitive act that will align you with your goals, because if you want to achieve something, you can. It just depends you how much effort you’re willing to give. Remember, nothing comes for free, and patrons don’t materialize out of thin air.
10. It’s fun!
You may not believe it based on the picture I’ve painted, but a crowdfunding campaign is actually really fun!
First off, the campaign design. This is the part that no one sees and no one talks about, but involves more than 70% of the total work. Produce a great video, set up rewards, the pitch, images… everything you need to debut your idea with the utmost excitement.
Next, the launch. The wave of communications that you generate will make you more visible during this time — and that’s a welcome boost for any creative ego. The adrenaline rush you get from stepping out into the world, so to speak, and publishing your campaign is a great high!
However, most importantly, you’ll establish intense communication with your patrons via comments, emails, tweets, and messages they send to you. Your patrons will ask you to clear up any doubts they may have, they’ll call you, and you’ll be responsible for a communication channel, creating content, or writing in a blog…
Have you ever been a patron or launched your own campaign? I’d love to hear about your experiences in the comment section.
P.S. If you liked this post, you might also like 5 Smart Passive Income Ideas for your Business (or How to Get Money for Nothin’).
Originally published at getquaderno.com.