Crowdfunding is a way of financing a project by pooling the contributions or donations or purchases of many individuals. This has become an emerging method for inventors trying to raise money. You can also know more about cooperative crowdfunding system online.
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How Crowd Funding works:
You post on one of the sites a video that talks about your invention in as intriguing way as possible and then you list how much money you are trying to raise and what you are offering. You can offer anything from a finished product once you have it made to a share of your business, royalties on sales or another offer that you may be considering.
Points for Success:
Check out the site carefully, and be cautious of upfront fees. Crowdfunding sites are being started by a wide variety of people and there may be some unscrupulous sites trying to get you money.
Post a personal video – a personal video with a passionate cause or story, will raise more money at crowdfunding sites.
Show you are in business – have your own web site and other marketing activities to show you are a real company.
Focus group sessions, attending trade shows and having booths at local fairs are all ways to demonstrate you are not just trying to raise money but are trying to start a viable business.
A crowdfunding campaign without proof that this product, service, or startup really exists will struggle to raise money.