Crowdfunding is becoming one of the most popular alternative methods of fund collection in India. More and more people are turning to crowdfunding to finance their medical treatments, education, creative projects like filmmaking, events, and whatnot. Some of the largest online crowdsourcing platforms are from India. So when the time comes to start your own campaign, how would you pick one from them?
If you want to choose the correct crowdfunding website for you, there are certain factors that you should always keep in mind. Crowdfunding India gives you a little guide to help you choose from different platforms on which to launch your project.
Does the platform match your niche?
There are numerous crowdfunding websites in India and they may look alike from the outside, but each and every one of them have a particular niche, industry, or category that they specifically support. Generally, the websites have the categories clearly mentioned on their homepage. For example, Crowdfunding India specializes in the field of Medical, NGO, Cancer, Personal Cause, Education, Film, and Travel Crowdfunding.
Do some research, read reviews, and the history of every website. You will automatically find out that some platforms are going to be better suited to your project than others. Compare and contrast the options and consider the type of project you’re raising funds for and if your platform will be able to help you reach your project goals.
What kind of model does the platform use?
There are a number of crowdfunding sites in India and it is extremely important to identify the key features of any crowdfunding website before tying up with them. First learn what’s different about each site, what types of projects they support, and how their funding model works.
There are a number of models of crowdfunding. Some of them are as follows:
- Rewards model: There are crowdfunding websites in India that let you offer perks or rewards to your donors depending on how much money they donate to your project. Donors don’t expect any financial return on their donations. This is the most common type of crowdfunding.
- Equity model: Equity crowdfunding is the type of crowdfunding where backers can make micro-investments into the project and get financial returns. There is no legal approval for this type of crowdfunding in India.
- Donation model: Donation-based crowdfunding is often used for social, or personal causes. In this model, the project creators do not have to offer donors any incentives or rewards. Crowdfunding websites like Crowdfunding India work in this model.
- Lending model: In this model, the backers lend a small amount of money to project creators. They are later repaid with a fixed rate of interest. This model is for those who don’t want to get involved in the complicated procedure of taking a bank loan.
- Hybrid model: Hybrid crowdfunding platforms use a mixed model.
For social and personal causes, the Donation model is the best. For business and other related ventures, equity crowdfunding attracts a larger donor mass. Also, the reward-based model is a fluid model that you can use under any circumstances if you are confused about choosing one.
Is your crowdfunding website appealing enough?
The most important aspect of crowdfunding is its appeal to the audience. So choosing a crowdfunding website that will ensure that your project will receive ample and correct exposure is extremely important. You have to take note of whether the website already has a group of faithful and entailed donors, who will be willing to help if your message reaches them properly. The correct crowdfunding website would help you connect with your backers, help you make a creative presentation of your cause, and would encourage you to reach out to your backers.
When you are starting a fundraising India, you need to plan your strategy beforehand, determine how to categorize the project, understand the donor crowd, and for this, you need to figure out which crowdfunding platform is the best for you.