Need money for a great new project? Crowdfunding can be no-risk way to raise the bucks by getting lots of donations from a large group of people (the crowd). Successful crowdfunding requires good planning and lots of promotion.
Crowdfunding websites allow you to create a campaign and receive money from supporters, usually for a small reward or incentive.
It’s simple, really - you create a project, set a fundraising target (the amount of money you need) and a fundraising period (the amount of time you will have to raise the money). Then you promote your project and ask supporters to donate money. To encourage donations, you can offer supporters different rewards (see below). Any donations you receive are held by the website until the end of fundraising period.
There are three basic crowdfunding models. Some websites let you choose between them.
There are a number of different crowdfunding websites. You’ll need to work out which is best for you. Be aware that some take a commission – a percentage of any money you raise. Make sure whichever website you use accepts projects based in Australia.
(By mentioning these websites, we're not recommending or endorsing them. There may be others that you'll want to check out, too. Please see the Yerp disclaimer for more info).
Successful crowdfunding is well planned and well promoted. Before you start, ask yourself:
Rewards are a way of saying ‘thanks!’ to your supporters. You might offer different levels of rewards, giving bigger rewards the more people donate. For example, if you were raising money to make a film, you might offer a mention in the end credits to everyone who donates $5, a copy of the film on DVD to everyone who donates $20, and the DVD plus an invitation to the launch of the film for anyone offering $50.
If you’re offering rewards, make sure what you’re offering:
We got these tips from a guy named Tom Dawkins. You can learn more from him in this video:
The news media – TV, radio, newspapers and internet – can help bring attention to your campaign, issue, project or event. …