Business organizations, Non-Profits, NGOs, fund-raising is something every organization needs to consider sometime. You might need to develop your organization, work on some project, or something else. But whatever be the case, you have to go for some method of fund-raising. While there are some other traditional methods of fund-raising like bank loans. But there is a better option – Crowdfunding. In this article, I will tell you why Crowdfunding is the best fundraising option.
What is Crowdfunding?
Before going on to the Why Crowdfunding part, let us first understand what is crowdfunding.
You have an idea which is either profitable or meant for social good or maybe even your personal use. To work on it, you need money. Now there are a bunch of people out there who have money and might be interested in investing in a profitable idea. So you go out to them, tell them about you idea. If it convinces them, they invest.
This is the simplest explanation of crowdfunding. And trust me! This doesn’t just look promising but is extremely profitable in reality as well. Now let us move to the Why Crowdfunding part.
Why Crowdfunding?
#It gives you a positive reputation.
A successful crowdfunding campaign not just yields you money, but also a good reputation. Your potential customers would trust you more since there is already a crowd who has their faith in you. Thus, you get a pre-formed positive reputation in the market. This is one of the best reasons why crowdfunding is an amazing option.
#Your first customers are Ready!
When you are crowdfunding for a business venture, your backers are all ready to become your first customers. Since they have invested in your project, they have ample faith in you. Thus, when your product releases, they would be the first ones to buy it.
#Your concept gets feedback before market lunch.
Not everytime the market receives your concept nicely. The approval of critics doesn’t matter. The customers should like it. Now since your backers are from the normal crowd, they would be able to give a genuine review. If they receive it well, you can be sure that the market will receive it nicely too. This is why crowdfunding becomes a profitable option.
#Donors are ready for your next initiative in case of Donation-based crowdfunding.
This is the reason why crowdfunding is a feasible option for NGOs and Non-profit organizations. An NGO doesn’t need money just once in a lifetime. They need fund-raising at frequent intervals to sustain their organization. When you choose crowdfunding as the method of fundraising, you have donors ready even for the next time. This is because once the people who have donated to your organization know about your work. Thus, they will crowdfund your next project as well.
#Your costs for fund-raising are minimized.
When you use traditional methods like a bank loan, you have to repay the amount back and even pay the interest. But this isn’t the case with crowdfunding. For non-profits, you just have to invest in publicity. For other ventures, you have to invest in marketing and rewards.
There ain’t one but many reasons why crowdfunding is the best option. Now whenever someone asks you why crowdfunding is the best, you surely have an answer.
