Internet Crowdfunding For Beginners

You may have heard about crowdfunding as a very effective way of raising money online, if you have, read on there are many things you don’t know about crowdfunding, if you havn’t well you’ll learn a lot.

What is Internet Crowdfunding

Online crowdfunding is the process of raising money online, just like the name you raise funds using this method; by a combination of Crowd and Funding, is simple people visit your project then they donate or contribute. The most common and effective crowdfunding is the ones done via a “middle man” in this case, middle men are those websites created with the sole aim of helping entreprenuers or individuals looking for funds to raise money.

How do crowdfunding websites operate?

Almost all the crowdfunding platforms are free, free to register free to join and free to create your project or projects. However they collect around 1 to 5 percent of the money raised depending on the type of crowdfunding website you choose, for instance if you raise $1000 they’ll take around $5 to $50 or more that’s how they make profits to keep the site running, ah! well actually those little little percentages makes them millions in profit.

Types of crowdfunding

There are 2 major types of crowdfunding, the first one is known as donation based crowdfunding, which is based on contributing towards a common goal, here the contributor only gets products or rewards.
The second and more recent type is investment crowdfunding, where businesses seeking capital sell ownership stakes online in the form of equity or debt.

Crowdfunding Sites

* * Indiegogo. Indiegogo is a donation based crowdfunding platform which approves almost every type of project be it music, personal finance, hobbies, and whatever thing you can think of except investment though.
* Crowdfunder Crowdfunder is based on both donations and investment, focused mainly in US and Mexico, they are great in terms of raising money.
* Rockethub Rockethub is the best in my own opinion, their they support you, help you raise money for virtually any project, it is also global that is they accept almost all countries including Nigeria. Others include
* Kickstarter. Kickstarter helps business, individuals and organizations to set up and obtain funds for their project. However Kickstarter is not widely available to some countries
* appbackr For app developers to raise funds to build their apps. Great for Tech savvy ones.

9 easy steps to create your project

To join any of the sites
1. Click the links to their website
3. First read the rules and FAQs 3. Create your account
4. Set-up your profile correctly with your pic, is important because potential donors will like to know that you’re real.
5. Start by creating your project, add text, images, audios and videos if avaliable
6. Proof read then publish your project.
7. Wait for approval, which is quick and easy, they don’t usually disapprove projects, so rest easy your projects will be approved so far you’ve done things by their books.
8. Once it is approved let the world know! Share with other like minded ones, it’s easy some crowdfunding sites has the best share services intergrated like social media buttons and more. Don’t be shy send links to people you know that can help.
9. Read their rules and FAQs if you havn’t done that ealier, they are very important that’s why you need to read them first.

Don’t forget to find a way and send your projects to me.

Wish you luck