Crowdfunding Websites – 5 Tips to Compare Them
You can find many crowdfunding websites on the internet, with each of them coming with a unique set of features. Some of these target particular niches, like filmmaking, music or journalism. Others serve any type of projects. Various crowdfunding platforms present various types of projects, and you can use the following 5 tips to compare them.
Check out various sites
First of all, you should browse through various online fundraising sites. Find out how they allow setting up of crowdfunding profiles. Check which elements are allowed – blog, present contributors, rewards for contributors, progress for funding, goal for funding, videos, images, descriptions, project titles etc. With these parameters, you can also evaluate other sites of this type.
Compare them depending on your requirements
Next, you should compare the crowdfunding websites on the basis of your project requirements. For instance, if your venture can be understood only in a visual manner, it is best to go for a fundraising website which can help you post videos and images. If you can describe your project only in words, you have to choose a website that allows you the same. If your venture is in a specific niche, you need to go for a crowdfunding site which allows you to target that particular niche.
Go through the terms and conditions
You should also properly go through all the terms and conditions of the online fundraising sites that you intend to use for online fundraising for your project. You can find two primary forms funding structures – however-much-you-raise or all-or-nothing. The second model lets you get finances only when your funding goal meets a particular deadline. If the deadline is not met, the funds are returned to the backers. Although this can seem a little odd to you if you are new to the concept, this model inspires a lot of confidence in potential investors and is quite successful. But if you do not like it, you can go for the first model.
Check out the fees
You should also check the type of fees that are charged by the crowdfunding website that you choose. It is better to go for one that charges lower fees, especially if you have a tight budget.
Test varied platforms
You should also do some amount of experiment. A lot of crowdfunding websites let you test them before actually making a pitch. You should try out 3 – 4 varied crowdfunding platforms in order to find the one that suits you the best.
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