Crowdfunding is gaining huge popularity all over the world, and there is data to back it up. Economic and financial trends indicate that the amount of money raised by crowdfunding platforms, like Kickstarter, during 2012 is close to $3 billion, which is an increase of over 91% since 2011. However, crowdfunding on platforms like Kickstarter can be quite tricky without help. Before you hire a Kickstarter expert for your marketing campaign or your product launch, you need to learn more about the crowdfunding advantages and benefits.
Top Benefits of Crowdfunding
1. Financial Backing
Every startup, every project, every business begins with an idea or a dream. But if that dream needs to become a reality, then you need resources to back it up. However, as every budding entrepreneur will tell you, capital doesn’t come so easy.
If we go by the data, in the year 2012, the total number of loans distributed through the Small Business Administration in the US dropped to 20 percent! The biggest benefit of crowdfunding is that it creates a business-funding environment that allows you to pursue your project with relative ease.
Even though it may seem like raising capital is a nightmare for an entrepreneur, crowdfunding and Kickstarter marketing are a great way to fund a venture. You can take your idea to a Kickstarter expert, and you can explore different crowdfunding platforms to raise funds from the community.
2. Reduces Risk
Starting a new venture or a new project takes courage mainly because there is always an element of risk involved. The journey can be long and challenging, especially if you have to struggle through it alone. Thanks to crowdfunding your journey to make your dream a reality does not have to be a lonely one.
Platforms like Kickstarter, allow individuals to showcase their creativity and get more people involved in a project so that entrepreneurs do not have to take on all the risks alone. Launching a crowdfunding campaign or a Kickstarter advertising campaign will reduce some of the risks that arise along the way and serves as a valuable learning experience for the future.
Crowdfunding done in close collaboration with a Kickstarter expert helps entrepreneurs gain market validation and does not require individuals to take on all the risks while giving up equity and going all out on one project.
3. Valuable Marketing Tool
When you are introducing a novel idea or concept into the market, it all about engaging the audience. Since the concept or the product you are introducing is new, it is important to be able to communicate the idea to your target audience; otherwise, you will never have a successful launch.
Running a crowdfunding campaign, through Kickstarter marketing, for example, is a great way to introduce your overall mission and vision to your potential customers. One significant benefit of crowdfunding is that it is an easy way to reach a wide audience via numerous channels.
You can work closely with qualified professionals and Kickstarter experts to learn how you can use crowdfunding as a marketing tool and boost engagement through social media mechanisms. Social media user engagement is essential for viral marketing; users are likely to share and spread the word about your idea to their connections.
To put it quite plainly, the whole concept of crowdfunding is a brilliant way for budding entrepreneurs to receive the financing they need to get their projects started. Even though crowdfunding initially started out as a social experiment, it has grown to become a viable tool for thousands of people looking to capitalize on their creative ideas. Crowdfunding has raised over $1.5 billion to give birth and growth ventures of all stages. This is the best time to take advantage of the associated benefits of crowdfunding and grow your venture.