How does it work?
There are a lot of steps to be taken before somebody is able to launch a campaign, and when you’re not planning your moves perfectly it’s easy to lose momentum that has been building up over a long time. When you’re finding your niche or expanding your audience, it’s a great idea to try and build awareness of your cause before launching a campaign.
This is because quite often, you go to start a project and launch without actually consulting your audience or without warning them you are going to launch a campaign and asking for support in advance. This will make a huge difference when launch time comes around because you have put the effort in to get these people on board and support you. But what about all of the other people using the website to support people already?
When you sign up to any given crowd sourced funding website, the people who are there already are not obliged to help you. Quite the opposite is true in fact, as there is no guarantee that simply signing up will convince people utilizing the crowd sourced funding service that your project is worth supporting. You will discover that when you sign up, these services will advise you to bring your audience to their site.
When it’s crunch time and you’re going to launch, the first few days are crucial in your campaign – and it’s incredible how much effort and potential gets wasted because of this. But this is all information relating to other crowdfunding platforms, where you’re not guaranteed funding, because it’s up to you to run your campaign. That’s wonderful! Go hard with that. Totally for it. I just wonder if there are other ways to go about it.
How could we improve it?
Favourable wants to pool money from people and direct it into projects, it’s crowd sourced funding. Difference being that with the people who are investing their money, a game will be played and some of the players will be entitled to get a fraction of the money in that pool, while the projects get to keep a large majority of the pool.
What’s in it for the people investing? They get to reap much larger rewards than they usually would elsewhere, and they get to help out a cause or project. For the people putting their projects or fundraising for charity here – it gets them exposure and funding and they don’t have to give away equity.
For the winners? They can recycle their rewards back into the community, by dividing the winnings among multiple projects. This is a blending of reward and donation based crowd funding to benefit your community.