I am frequently asked about crowdfunding as a way to finance a new product. There is no way that I can discuss all of the things you need to know about running a Crowdfunding Campaign. However, I have two critical issues that need to be addressed first:
- There is NO free money: A good campaign will cost money to launch and money to complete.
- Crowdfunding is really HARD: Running a good campaign is a fulltime job for the time leading up to the campaign, the duration of the campaign and the follow up after the campaign.
Now, if you can keep those two things always at the forefront of your planning, then “YES”. Crowdfunding does have the potential to be a real game changer in the world of financing a project.
There are two main types of crowdfunding: perks based and equity based. Both have different legal and financial obligations. Make sure you take the time to understand the benefits and obligations.
The best way to use Crowdfunding is as a presale tool for assessing the consumer interest in your product. Setting up a good Crowdfunding campaign takes several months. Take the time to learn the skillset required. You can join (it’s free) Colorado Crowdfunding Meetup to access all of the information you need to launch a good campaign.
Link to Colorado Crowdfunding: http://www.meetup.com/Colorado-Crowdfunding/
If you have any questions, please let me know.