03 Jan How a Custom Crowdfunding Platform Can Help Grow Your Business in 2018
One of the predicted trends for 2018 is a continued increase of crowdfunding campaigns. It’s predicted that more companies will start integrating crowdfunding into their marketing strategy. We have already seen some evidence of this in 2017 as platforms like Kickstarter and GoFundMe have increased in popularity. In 2018, the trend is expected to continue to grow and reach new levels of popularity.
But for many, the concepts behind crowdfunding still seem unclear. If you’re unfamiliar with crowdfunding campaigns, you’re not alone. Crowdfunding is a relatively new trend. However, it is one that should be taken advantage of, especially for small businesses and athletes. In this post, we’ll delve into the details of how crowdfunding works and how entrepreneurs can use crowdfunding platforms to their advantage.
The Basics: What Is Crowdfunding?
Let’s start with the basics. So, what exactly is crowdfunding and how does it work? Crowdfunding is a means of generating revenue based on donations. Essentially, it’s a roundabout way of getting people to buy your goods or services by getting them to invest in a cause. The reason that so many companies find crowdfunding successful is because it taps into the emotions and the heart of the consumer.
For example, say that a company sells sports apparel and their main target is high school students. Instead of trying to sell directly to the students or parents, the company decides to host a crowdfunding event, called a “hit-a-thon”. During the hit-a-thon, students try to hit as many baseballs pitched to them as possible.
Parents, teachers, and family members can pledge to donate a certain amount of money for each baseball a certain player (their child, student, grandchild, etc) hits. The money is then put towards purchasing a uniform for that player. In this way, revenue is generated more effectively because consumers feel that they are invested in a specific cause, a specific person, rather than a product.
Another example of crowdfunding could be a campaign created by a nonprofit agency. Say that the agency works with local homeless shelters. The agency could launch a campaign to generate funds for the shelters by encouraging people to give donations to sponsor specific families. Donators are shown pictures of the families, which are posted on a website, and can pick which families they want to donate to.
The funds generated from the campaign all go to the same cause. Regardless if the donation is made out to “the Johnson family” or “the Phoenix Homeless Shelter,” families at the shelters are benefitting from the donations. The difference is how the campaign is being marketed.
Learn More About Custom Crowdfunding Platforms
If you would like to learn more about crowdfunding strategies or are interested in integrating a custom crowdfunding platform on your website, please do not hesitate to give me a call. I would be more than happy to discuss different strategies with you and develop a plan that can help you successfully market your business.