Crowdfunding has definitely taken over our lives, whether it’s funding the ideas of your dreams or funding your neighborhood’s operations. As with all new and evolving means of making things simpler, crowdfunding has its own set of pre-existing terms and contexts.
It has never been easier for anyone to start a crowdfunding campaign. But the best part is knowing what you want to sign up for. For anyone who is vague about crowdfunding, it’s important to do your due diligence before running a crowdfunding campaign. Crowdfunding platforms are generally for-profit platforms (this is not to say that crowdfunding platforms for non-profits don’t exist). There are rules and regulations here. It’s best to know these three things before choosing to launch a crowdfunding campaign for any purpose. , whether creative, medicinal, or entrepreneurial.
1- Know your platform
Some platforms specifically address creative causes, some are related to healthcare, and others are broadly addressing entrepreneurial pursuits. It is important to properly evaluate the platform in your case. Most crowdfunding platforms typically charge for hosting campaigns. You may also incur different charges depending on the additional services you subscribe to.
These platforms also come with unique target audiences. If you’re setting up a campaign to raise money for healthcare on a creative platform, you should be aware that there is a serious discrepancy among the audiences you’re tagging. Niche platforms usually specialize in one specific type of fundraising, and it’s best to use them for the benefit of your campaigns in terms of context, reach, marketing, and audience, etc.
2- Know the cost
It is important to have a buffer as the platform charges fees and charges incurred for marketing or promotional activities. Always consider fluctuations in different currencies (if the platform allows international donations) and the amount you will lose in taxes levied (depending on where you live). If your cause is creative or entrepreneurial in nature, it’s important to think about your PR costs and promotional efforts. Marketing has game-changing potential, so it’s important not to overlook it and get the funds you need.
3- Know your audience
It’s important to be able to communicate the value of your campaign to your audience. Regardless of the nature of your campaign (medical, creative and/or entrepreneurial), it is important to be able to communicate the urgency of your campaign to your audience. Building trust, transparency and openness to your campaigns is essential. This allows you to connect with your audience. If someone is willing to donate money to your cause, of course they’ll want to know the details and updates in the long run.
Please understand that being able to communicate your condition to potential donors is very important. It is very important to understand how you can communicate your cause. Empathy goes well with medical causes, pitches with entrepreneurial causes should revolve around types, and with creative causes it should revolve around your history and creative field and project scope.