What is Crowdfunding and how can I profit from it?

· von cosmopanama ·

Did you know the Statue of Liberty was already Crowdfunded? More than 160.000 people helped funding the iconic New York landmark in 1885. Crowdfunding now works almost the same, but now everyone can start a Campaign and reach out to Millions of people around the world, looking for support.

Many different kinds of Crowdfunding styles and platforms developed in the 2000s, finding ways of supporting new technology, movies, games or music. For every situation there is a fitting style of Crowdfunding, so here is an overview of the most popular ones:

Donation-Based Crowdfunding (Crowddonation)

  • The most simple form of Crowdfunding, here the supporter donates any amount of money he wishes to the project. A return or reward does not have to be guaranteed, as this form often is used for good purposes.

Reward-Based Crowdfunding

  • One of the most used Crowdfunding models, the projects backers get different rewards for the amount of money they give.

Lending-Based Crowdfunding (Crowdlending)

  • Crowdlending works like a big credit paid by the users. The project backers get a return in money and often a reward for supporting the project.

Crowdinvestment

  • Like in the stock market, in this form of Crowdfunding the supporters get shares of the revenue over time from the project, depending on how much they invested.

As we're working on our own full Crowdfunding feature, we want to know from you:

  • What makes a Crowdfunding platform good in your opinion?
  • Which model is the best for musicians and artists?
  • Your experience from different Crowdfunding platforms.
Thanks for reading and a great weekend, wishes Inicat! :)

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