Questions

A marketplace where charities, orphanage, non profits can post what resources or finances they need along with a breakdown of what the finances will be used for and then individuals or corporations can donate to them and money is released when they hit the amount needed. Pro and cons of this?

There are many pros and cons of launching a Kickstarter.

Pros:

1. Generally safe - There is a low venture to dispatch a crowdfunding effort.

2. No Equity - You can fund-raise without parting with part of your organization (value).

3. Leverage small donations - A heft of crowdfunding gifts originate from limited quantities. A star of crowdfunding is you can gather these gifts you would normally not get if raised from enormous contributors.

4. Increase Feedback - People are exceptionally vocal about crowdfunding efforts. It's an extraordinary time to get input for your thoughts.

5. Negative money to money - This is one of my preferred motivations to crowdfund. You can gather the money before you put resources into making your venture. In bookkeeping we call this negative money to money. It makes dealing with your cash 1000x simpler than the customary way. With a normal income you pay for the materials first and afterward need to sell the item/administration to recover the cash.

Cons:

1. Risk of failure- You could fail, and that always sucks. Again better to fail early than after investing a ton of your own money in creating something people do not want.

2. Advertising - Most creators are not experts at marketing. This makes getting people to hear about your campaign difficult. There are a ton of tactics and tricks to gaining traction on a crowdfunding platform. But it takes time and you need to be committed to the strategy.

3. Investment of time- When I talk to successful crowdfunding creators they are always surprised at how much time it took. Plan ahead and give yourself a realistic timeline for the campaign.

4. Expenses - On Kickstarter you possibly pay in the event that you raise the measure of your objective. On the off chance that this happens you do need to pay expenses.

5. Rules - There are additional rules to most stages about what you can and can not do. Try to understand them so you are not in infringement!

If you have any further questions, please schedule a call.


Answered 4 months ago

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