I had the pleasure of talking with Sarah of BoostYourCampaign about the various types of crowdfunding and how crowdfunding helps entrepreneurs around the world bring their product or idea to the market, without the heft investments.
BoostYourCampaign: A Leading Marketing Agency
BoostYourCampaign has been reviewed as one of the leading crowdfunding marketing agencies with offices in the US and Europe. While they have a strong connection with crowdfunding, they partner with small to large e-commerce stores and international brands in retail sales. This allows the agency to support their customers not only with their product launch, but also retail and commerce launches after a successful crowdfunding campaign. Working with over 4100 campaigns, raising over 400 million, a consumer rating of 4.98 stars, and working with leading players such as Sennheiser (audio and technology), Junghans (bespoke watches), and even Shark Thank products, they are one of the leading marketing agencies in the US and Europe for crowdfunding, Amazon, and CRO. BoostYourCampaign‘s marketing tactics make sure the entrepreneurs receive the needed funds to bring their product or idea to the market, as well as helps them getting global recognition. They keep up their consistency even after the money starts to flow in. If you’re new in the crowdfunding world, then make sure to review BoostYourCampaign and its services.
What is crowdfunding?
Crowdfunding is the process of raising funds or financial support from the crowd or mass people generally via the internet. Once your business idea is presented on a crowdfunding site, people will go through it and decide whether to invest or not. The small amounts donated by the giant number of individuals eventually make it a humongous amount, which allows you to complete your project perfectly. Several websites such as Kickstarter or Indiegogo have been giving good services in this regard for over a decade.
Among various types of crowdfunding, the main four types are- reward-based crowdfunding, debt-based crowdfunding, equity-based crowdfunding, and donation-based crowdfunding. Reward-based is the most common form of crowdfunding on the internet.
Here, creators must provide rewards such as a copy of the project to their backers as promised when the project is successfully done. This type of crowdfunding is great for start-ups who are aiming to grow it into a business. But as you’re dependent on individual donations, it may not be a good option for start-ups seeking large amounts of funding. In the case of the donation-based one, the fundraisers usually do not offer anything in return for the donation. People donate money because they like the idea of the project and want to see some good outcomes. They care more about the project and its story.
In terms of equity-based crowdfunding, people who invest in the project can get a share or partial ownership of that project in return. In that case, the fundraiser will not have full ownership over that project. Usually, a small group of people invests large amounts in it as they become shareholders. And the last, debt-based crowdfunding, also known as peer-to-peer lending, is where funds are raised from individuals in return for interest. Fundraisers take loans from the investors who look forward to getting their money back with interest or often little amount of interest is wanted. But this way, both the fundraisers and investors get benefitted.
Due to the COVID-19 situation, dependency on online platforms have tremendously expanded. Public relations has become more important during this time. Public relations strategies are a must for success in crowdfunding. But unfortunately, many entrepreneurs do not know how pr works in crowdfunding. It is important to have a complete plan for everything. Though crowdfunding websites and marketing agencies make it easy by taking care of these problems.
In this advanced world, data is everything. Marketing and crowdfunding are greatly dependent on customer information. After analyzing big data, strategies are made to boost the business by getting accurate predictions about customer behavior. The crowdfunding platforms and websites come up with these strategies using data to attract customers, both the fundraisers and investors. Social media performs a big role in crowdfunding projects as its data can effectively tell what the demands of the audience are. And in doing such, data-driven companies like BoostYourCampaign are providing services to help business owners and individuals launch raise funds on crowdfunding platforms.