What is crowdfunding and how to apply it to your project
Posted: Thu Jan 23, 2025 10:20 am
To launch a project, you need to have some savings to be able to finance it. However, it is often a bit difficult to gather all the money needed to achieve this. That is why crowdfunding was born in this digital revolution.
This new “alternative” is a form of crowdfunding that can be applied for many purposes, such as political campaigns, donation funds for an NGO, production of independent films, etc.
To understand how this new mechanism can be applied to obtain financing for your buy cell phone number list business, we will explain it to you little by little.
What is crowdfunding?
Crowdfunding is a collective collaboration that aims to collect money for a certain objective. It was born out of the fact that there are many people interested in supporting the ideas of others .
It is done through small donations made by people who hope to receive some benefit in return, or it is also done altruistically. This is why there are several types of crowdfunding.
What types of Crowdfunding are used?
There is a classification that is used according to the type of contribution that is made and the relationship that is developed with the donor.
Donation crowdfunding for charity projects
This category refers to donors who do so selflessly without expecting any benefit in return. This is done if the project is charitable, such as raising funds to provide food and shelter to people living in the coldest areas of the country.
Reward crowdfunding, a return contribution is expected
As the name suggests, this is done when a contribution is offered in exchange for the person who makes the monetary donation. In the case of a company, products or services are provided free of charge.
Investment crowdfunding, a percentage of the profits is received
The person who contributes the money becomes an investor in the project, which means that when the business is launched and starts to make a profit, a certain percentage will go to the contributor.
Crowdfunding of loans, a return is made with interest
In this case, the investor receives a monthly income with interest, in which the amount he contributed to launch the project is returned to him.
How can I apply crowdfunding for my project?
After knowing the classification of these financings, you must follow the following steps:
Submit your project to a crowdfunding platform
You access a crowdfunding platform indicating the description of your project, the amount of financing you need, and how much time you need to achieve your goal.
You publish and promote your project with digital marketing strategies
You publish the project, which can last from 30 to 120 days. Then, you must promote it with digital marketing strategies , using videos, infographics, etc. This is to convince people that it is worth contributing to your idea.
What happens to my project at the end of the crowdfunding process?
When the final day of the crowdfunding process arrives , you will know whether or not the funding goal was achieved. If it is achieved, you will be given the money raised, while if the expected amount is not reached, all the money raised will be returned to the investors.
This new “alternative” is a form of crowdfunding that can be applied for many purposes, such as political campaigns, donation funds for an NGO, production of independent films, etc.
To understand how this new mechanism can be applied to obtain financing for your buy cell phone number list business, we will explain it to you little by little.
What is crowdfunding?
Crowdfunding is a collective collaboration that aims to collect money for a certain objective. It was born out of the fact that there are many people interested in supporting the ideas of others .
It is done through small donations made by people who hope to receive some benefit in return, or it is also done altruistically. This is why there are several types of crowdfunding.
What types of Crowdfunding are used?
There is a classification that is used according to the type of contribution that is made and the relationship that is developed with the donor.
Donation crowdfunding for charity projects
This category refers to donors who do so selflessly without expecting any benefit in return. This is done if the project is charitable, such as raising funds to provide food and shelter to people living in the coldest areas of the country.
Reward crowdfunding, a return contribution is expected
As the name suggests, this is done when a contribution is offered in exchange for the person who makes the monetary donation. In the case of a company, products or services are provided free of charge.
Investment crowdfunding, a percentage of the profits is received
The person who contributes the money becomes an investor in the project, which means that when the business is launched and starts to make a profit, a certain percentage will go to the contributor.
Crowdfunding of loans, a return is made with interest
In this case, the investor receives a monthly income with interest, in which the amount he contributed to launch the project is returned to him.
How can I apply crowdfunding for my project?
After knowing the classification of these financings, you must follow the following steps:
Submit your project to a crowdfunding platform
You access a crowdfunding platform indicating the description of your project, the amount of financing you need, and how much time you need to achieve your goal.
You publish and promote your project with digital marketing strategies
You publish the project, which can last from 30 to 120 days. Then, you must promote it with digital marketing strategies , using videos, infographics, etc. This is to convince people that it is worth contributing to your idea.
What happens to my project at the end of the crowdfunding process?
When the final day of the crowdfunding process arrives , you will know whether or not the funding goal was achieved. If it is achieved, you will be given the money raised, while if the expected amount is not reached, all the money raised will be returned to the investors.