Your Guide To Creating Money For Any
Financial Need or Project You Have!
This is an introductory article that explains what Crowdfunding is.
It is said that by end 2014, the number of Internet users globally will be almost 3 billion and will continue to grow. It is because of the Internet our world has grown smaller and smaller. The ability for people to connect and gather around various social issues and to demonstrate those concerns in tangible ways has changed our world forever.
The old way of raising funds was to go to the bank. People invest there money into the banking system and the bank loans that money out many times over to many people creating huge windfall profits from the credit given. The new way is to access money directly from people through crowdfunding. This bypasses the high fees and profits banks make and opens up a world of opportunity for the average person.
OLD WAY NEW WAY
What is Crowdfunding?
Crowdfunding is an invention of the Internet and our hunger to connect with others who share similar idea’s and concerns. Currently there it is said that there are over 500 websites which all individuals, groups, non-profits and companies to present what is commonly known as a project.
Crowdfunding websites are a new concept that started around 2003 and has grown in the last few years to a 5.1 billion dollar industry in 2013, 10 billion in 2014. The World Bank estimates that it will reach $96 billion in 10 years!
Crowdfunding is a worldwide phenomenon that is now helping to make the dreams of people just like you come true. It is creating a powerful new global economy.
In 2014 Crowdfunding has outperformed Facebook by BILLIONS of dollars!
What do you need to raise money for?
- Starting or expanding a business
- Nurturing spiritual pursuits
- Creating projects to “Make a better world”
- Funding home improvements
- Funding collage loans
- Funding a coming wedding
- Buying a new or used car
- Creating a retirement fund
- Paying off loans, bills, mortgage etc…
Some of the most interesting developments in crowdfunding, which are expected to grow in the months and years ahead, include: investment crowdfunding (becoming a shareholder in a company), localization (funding focused on participants in specific cities and neighborhoods), mobile solutions, and group-based approaches.
The JOBS Act that was passed in April of 2012 paved the way to investment crowdfunding, but the JOBS Act Rulings by the SEC have yet to be fully implemented to formally kick the market off. Expect big movement and activity in this area in the coming years.
Types of crowdfunding
There are many types of crowdfunding, each having its own distinct purpose. Here are just a few of them.
Reward-based crowdfunding has been used for a wide range of purposes, including motion picture promotion, free software development, inventions development, scientific research, and civic projects
Equity crowdfunding is the collective effort of individuals to support efforts initiated by other people or organizations through the provision of finance in the form of equity.
Litigation crowdfunding allows individuals to invest in legal disputes, globally, allowing those in need of litigation funding anywhere in the world to obtain it from their peers.
Charity crowdfunding is the collective effort of individuals to help charitable causes.
With over 500 websites who provide crowdfunding it can be difficult to choose the right one. Do you go with a donation-based service like Kickstarter or RocketHub? An equity-investment site like EarlyShares? A debt-investment platform like Prosper? Should you pick one that lets you keep whatever you raise, or one that requires you to raise a predetermined amount? Or should you eliminate the middleman altogether and build your own page using a white-label platform like Crowdhoster?
All Crowdfunding websites have several things in common
- They all charge a fee or a percentage of your donations for using their platform.
- They all require for you to do all your own marketing. This means you will have to contact 100s or 1000s of people through your own efforts to ask for contributions.
- They all have time limits.
- They all use “Addition” rather than “Multiplication” to gather donations.
For example, an average project with a $10,000 funding goal will have a 35% chance of success if the campaign period is 30 days, whereas it will have only a 29% chance of success with a 60-day campaign period.
Many projects fail to attract the necessary attention and fail miserably. The key to running a successful campaign is having a large social foot print. What this means is recruiting a group of friends to help you launch your project through social media. You will need to continually promote heavily to create momentum.
EVERYTHING IS ABOUT TO CHANGE...
Welcome to a “Global Intentional Community” built upon our “world class shared platform!”
Typical Crowdfunding sites require hundreds, even thousands of individual donations to raise the necessary funding that they need. We provide you the opportunity to give a one time gift of any amount from $25 to $200. Your gift will be used to benefactor an outreach project from our list of approved outreaches or one of your own choosing. Once donations of $200 are raised they will be placed into our distribution formula where they will continue to receive funds as other projects are funded.
When a new project raises $200 it is passed on to other projects thus qualifying the project that is giving the donation. Once qualified they then are able to receive funding from other projects that join after them as well. As more projects join a small portion continues to be passed onto projects that came in before them. This is what we call leverage.
The good news is that 100% of money donated goes direct to the projects. No fees are charged as with other crowdfunding sites.