Have you ever wondered how to own and operate a Crowdfunding platform? For those who are curious, it is a great way to help others with generating funding for their business/charity, while also having the opportunity to generate income as well. There are several Crowdfunding paradigms that can be utilized.
Crowdfunding paradigms
The different Crowdfunding paradigms include rewards, donations, equity, real estate, loan, and ICO. Each of these paradigms can be used for different niches. There are many successful Crowdfunding platforms around for every paradigm. Some of the most successful Crowdfunding platforms include Kickstarter, Indiegogo, GoFundMe, and more. These popular platforms are taking a percentage of each donation to the platform. These transaction fee rates can range from 5% – 15%. Those same rates could apply to a Crowdfunding platform that you can own and operate yourself.
Depending on the type of Crowdfunding platform, and the campaigns that are running on the platform, there is a lot of money to be made in just the transaction fees alone. Campaign creators are starting to realize the opportunity that niche Crowdfunding platforms provide, as many campaigns do not get recognition on the most popular platforms due to the overpopulation of campaigns. Only the top funded, and elite campaigns are featured on the popular platforms, which does no justice for smaller budget campaigns. This is why owning a Crowdfunding platform can be quite valuable. Even those Crowdfunding platforms that are not for profit are finding success with creating a niche platform. Here is an example of a non-profit raising over $49,000 in just the first day of funding.
How to run a platform
The first step to take is establishing the paradigm and the niche of which you will be operating the platform under. There are many opportunities to run a Crowdfunding platform today. New funding methods like ICO are starting to become popular, and the opportunities are growing. New platform ideas are starting to emerge, for example, charities offering rewards to the backers for donating to their charity. This method is fully explained here. This opens the opportunity to use rewards for a charity, which is not as common among charities and non-profits. Although traditional methods of funding reward the backer for donating by giving them the sentimental value of being a good Samaritan, the opportunity of offering tangible rewards is also a possibility when using the right Crowdfunding software.
Once you establish your Crowdfunding paradigm and niche, you can begin to calculate your transaction fee and choose the Crowdfunding software. The opportunity of great Crowdfunding software is available, so there is no need to spend hundreds of thousands of dollars to get a Crowdfunding platform created, not to mention the years of work that it takes to create and maintain. Using such SaaS products as Atlas is the ideal solution for those that would like to customize their platform, and gain access to countless different features out of the box.
Operations
After the Crowdfunding platform has been set up, there is work to be done as a portal administrator. Be sure that the banking information is connected with Crowdfunding platform using a safe payment gateway. You will have the option of approving and disapproving the Crowdfunding campaigns that are running on your platform, as well as helping to answer any questions that Campaign creators may have. Of course, the biggest task is getting the Crowdfunding campaigns on to the platform. Once the platform has a large enough following, the number of campaigns will grow. This process does not happen overnight and could take several years to establish, however, once the Crowdfunding platform is popular enough, there is a lot of money that can be made. In the end, Crowdfunding platforms are not difficult to create or operate, they may take work, but in the end can provide lots of value to the campaign creators, donors, and portal administrators.