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Crowdfunding has taken the funding industry by storm, with popular crowdfunding sites such as IndieGoGo and Kickstarter setting the trend of getting people the much needed funds for their projects, charities or innovations. Standing out of the crowd of the numerous sites may not be such an easy thing to do, especially if you don’t know which direction to take. There are crowdfunders available to take on small projects, big projects or specialized projects to mention but a few. A number of people may be involved in such sites from the financial professionals to the lawyers, project and campaign management to online stores that will handle the orders and fulfillment of the crowdfunded products to mention but a few.
While deciding on the creation of a crowdfunding website, you need to make important decisions. You need to decide whether or not it will be donation based, loan or debt based, equity based or rewards based. Will it involve the general public(non-credited investors) or will it need the help of professionals such as lawyers and financial professionals, most especially if it is equity based?
Once you have decided upon which type of site you want to use, then you need to now decide on whether or not you want to build it from scratch. Building a site from scratch may be fulfilling when it is finally up and running however, you have to think about the amount of time and energy, not to mention money you will have put in it. Making use of a crowdfunding software on the other hand means that you can easily launch your website to your satisfaction by making use of personalized templates. Such software usually already have the payment processing already implemented, which makes your job that much easier.
Before making a decision on whether to build a site from scratch or make use of available solutions, you need to know that crowdfunding does require social media skills, it does require technical skills, it does require networking and time and most importantly It doesn require careful planning if you are looking to succeed. Bearing in mind that there are a number of platforms making it to the public eye on any given day, you have to make yours count, you have to make it stand out from the crowd. There may come a time where it is a choice between paying for marketing and advertising and going about it your own way.
At the end of the day, launching a crowdfunding platform is not a cup of tea, a lot of care has to be taken. You need to make sure that you are covered legally, because, at the end of the day, you don’t want to have a successfully growing business only to be faced with a number of legal problems. With this in mind, it is better to have everything done right the first time in order to avoid getting frustrated in the end. For an online launch, it is better to ensure that you have a suitable technological foundation in place, which foundation incorporates speed, security and performance among others.
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