According to the crowdfunding definition, it is a new way to sponsor a project or a new business idea in which a large crowd of people are convinced to willingly give funds for the project. The crowdfunding definition also says that the amount to be given by different individuals is not fixed and it can vary from a small amount to a very big amount depending on the individual’s suitability.
What crowdfunding definition is trying to convey?
What it is actually trying to convey is that instead of trying to fund our projects or ideas by asking for loans from banks or asking investors for money, it is a new and better alternative to get sponsored. The crowdfunding definition also states that the people contributing to the project can be anyone and this method also utilizes the big network of acquaintances, family, and friends.
From what can be concluded from the crowdfunding definition is that the easiest way to get a vast number of people to contribute is through social media. Though many people don’t have the knowledge of crowdfunding, but once the crowdfunding definition is explained to them, it can become a good way to raise money for the projects. Sites like Facebook, LinkedIn, etc. can be used to get access to all the potential contributors and explain them the crowdfunding definition.
Once the crowdfunding definition is explained to people, it becomes easier to convince them in funding the project. The crowdfunding definition can also be explained to the contributors through emails by getting subscriptions, by organizing events, etc. but the best method out of these to advertise the crowd funding definition is by using the social media.
One of the important features of the crowdfunding definition is that the people can give their money in exchange for non-monetary gains or as a future investment also based on their choice. The crowd funding definition has three key players.
- First is the person who came up with the idea of the project and is asking for funds from the contributor to fund it.
- Second, it those contributors who agree to sponsor the project by contributing as much as they could.
- The third is the connecting platform which becomes an interface between them.
Though the crowdfunding definition is very much similar to crowdsourcing, they are quite different. By crowd funding definition,it means taking monetary gains from a number of contributors, but crowdsourcing means getting tasks or work done by asking help from a large number of people.
The crowdfunding definition also states that if someone is contributing to a project, it doesn’t mean that he will necessarily gain something from it after the project is a success.
Crowdfunding has many benefits which include providing a feedback about your project from the contributors, it can also prove to be fast and effective if it is done properly and there is a very little risk compared to other forms of funding. Crowdfunding also has some disadvantages like it can expose your idea to plagiarism and if the platform is not chosen properly, it may even restrict the amount of funds we gain.
