28 Feb The Benefits of Choosing Reward Based Crowdfunding?
Crowdfunding in general comes attached to a variety of benefits and deciding to go with reward based options brings even more perks to the table. Let’s take a closer look at some of the most noteworthy ones.
A successful crowdfunding campaign is about a lot more than simply getting the money you need to move a project forward. Going the “donations only” route is also a way to avoid many of the financial risks associated with using other avenues. For instance, you won’t have to deal with the debt, credit implications, and interest attached to standard bank loans or the restrictions associated with a government grant. You can avoid feeling indebted to friends or family as well.
If you go with traditional fundraising platforms, you could wind up paying a lot of money for the privilege of doing so. However, most of today’s online crowdfunding platforms allow you to set up your project and raise your funds for only a small percentage of the money you collect. Plus, they’re highly user friendly and simple to manage, so you save money in labor costs as well.
In the age of the internet, people like to feel a personal connection with the businesses, projects, and charities they give their money to. Reward based crowdfunding allows you or your organization to actually make that connection with those who are interested in what you’re doing. People who feel connected to your cause will be more inclined to help you spread the word, helping you reduce marketing costs. They’ll also be more interested in continuing to back you or your projects in the future.
While many people do enjoy simply donating money to a cause for its own sake, reward based crowdfunding is as popular as it is because it appeals to just about everyone. Taking the time to choose rewards people really want is a great way to make them an offer they can’t refuse. It’s also a super way to appeal to benefactors from all walks of life and ultimately raise more money. A hundred small donations, after all, can be just as effective as one or two big ones.
Even though crowdfunding is still a relatively new way to raise money for a project, it’s already become incredibly trendy. At this point, people are used to hearing about people who are raising money this way and many already regularly contribute to campaigns they find worthy or interesting. Plus, supporting indie artists, small businesses, and other independent entities is an incredibly popular thing to do right now. That said, one of the bigger challenges left for someone looking to raise money this way lies in making a strong enough connection with an audience to make them want to get involved.