Do you want to find out why people nowadays rely more on crowdfunding. There are so many advantages why they turn on to social media for their projects.
Here are seven advantages of crowdfunding:
1. Provides a source of capital
2. Minimizes risks
3. It serves as a marketing tool
4. It has low cost business ideas
5. You get in front of potential customers
6. It provides the opportunity of testing your product to the customers
7. It is free
Crowdfunding, being introduced to the business sector: The Advantages
Advantage 1 – Provides a source of capital – crowdfunding gives easy access to capital. Enterpreneurs with limited capital or has no available fund for equity can easily outsource fund through crowdfunding.
Advantage 2 – Minimizes risks – it filters the participants who is up to the project. The principal has the capacity to validate and reject in giving out capital before taking the project.
Advantage 3 – It serves as a marketing tool – crowdfunding campaign is the smartest way to introduce a project. As it is being viewed and read by thousands of different viewers and users who can share and even market the project through their connections.
Advantage 4 – It has low cost business ideas – You invite new ideas and concepts by allowing the viewers to give feedbacks and comments. Their ideas can improve your project.
Advantage 5 – You get in front of potential customers – As it is being introduced, there are prospect customers who become a part of the project. They buy and support the idea and in a way, they spread the purpose and the message to others. Because they believe in the project, its brand and the message, they become loyal customers.
Advantage 6 – It provides the opportunity to test the product to the customers – a crowdfunding campaign gives an entrepreneur the opportunity to test the product to the customers before launching. This gives them the idea whether to go or to change the concept, according to the needs of the market.
Advantage 7- It is free – there is no penalty or other fees collected from the enterpreneur if he doesn’t reach his target. All the funds are refunded to the contributor, the entrepreneur doesn’t get anything and neither does the platform. But, if the project reached its goal, everyone gets to be a part of a successful crowdfunding project.
It may not be likely to put into numbers the advantages of crowdfunding. But the ones listed were the familiar advantages and were never in question. Crowdfunding is a way to improve the concept of fundraising. And with the help of social media, one can never see its purpose go down the drain.
