Crowdfunding

If you want to finance your initiative or project, there are several possibilities. You can apply for a grant or fund, you can try for sponsorship and you can generate income from your audience. The latter can be done in several ways. One possibility that has been popular for a number of years, and has become increasingly easier with the advent of the Internet, is crowdfunding.

What is crowdfunding?

Crowdfunding is also known as "crowd funding. The idea is that you offer your project to The Crowd" (often through a crowdfunding platform). Private investors can then fund part of the project in exchange for a quid pro quo. which they either pay directly or when you have 100% of the required amount pledged. Before embarking on crowdfunding, it is good to realize two things:

1 - It requires a very large time investment in most cases.

You will have to come up with a good pitch and, for example, make a nice "movie" to present your project. In addition, it takes time to thank donors and you will have to keep (potential) donors informed of the progress of your project. During the recruitment period, it is good to keep coming up with new ways to stimulate your givers to be an ambassador for you. That way, you can create a snowball effect whereby your small circle of friends and acquaintances ensures that you reach a large group of people who also want to contribute.

2 - Think of crowdfunding as a marketing tool

Crowdfunding is -as strange as it sounds- actually not a way to raise money, but a way to sell your product. So it is a marketing tool and also a great way and opportunity to engage audiences. As with regular marketing, you do need to know who your target audiences are and have a plan on how to reach them. Ideally, you don't just want donations to come from, say, your grandmother or your neighbors. Developing a good campaign takes time (and knowledge).

How do you go about crowdfunding?

Step 1

When funding the initiative or project, you decide what portion you want to bring in through crowdfunding, in addition to the other forms of funding (if any).

Step 2

Then you start looking at what quid pro quos you can offer. In doing so, assume that people's wallets are not always well-stocked. Crowdfunding can be borrowing money where the person you are helping offers a good interest rate. However, it is more fun and eye-catching when you also offer creative quid pro quos. You can offer multiple quid pro quos on most crowdfunding platforms, varying in amount. For example, it could be an admission ticket or a copy of the book. For a slightly higher amount, the ticket is delivered in a luxury box or there is a personal piece from the author in the book. Also consider, for example, dinner with the cast, a role in the movie you're making or VIP treatment at your event. There is endless variation here. You can also ask for a contribution with no quid pro quo anyway. There are always people who know how hard you work for it and who will just give it to you.

Step 3

Set up crowdfunding by using one of the many platforms now in the works. This is simply the easiest thing to do. You can also choose to do it yourself through your own website or social media.

Step 4

Promote your crowdfunding because otherwise no one will know about it and you will be less likely to be successful. It is advisable to inform a number of people in your area before you go online with the campaign. If they make a pledge in the first few days (not all at once), it is easier for others to follow suit. You can do that through your social media or use partners and collaborators. In some cases, your initiative or project, or a quid pro quo you offer, is so successful that it even makes the newspaper. Therefore, send a press release if you think there is a chance of this. Also keep coming up with news for those who have already pledged but also for potential new givers.

Platforms for crowdfunding

On the Internet you can find a good number of websites or platforms that help you realize crowdfunding. Both internationally and in the Netherlands, they have come a long way in their development. These platforms make it very easy for you to set up crowdfunding. Often they also already have an existing constituency to whom they communicate initiatives or projects. In this way, you might reach new audiences again. Generally, these platforms ask for a contribution in the form of a percentage and/or a fixed amount. This varies from platform to platform. They also collect the money from the participants. They often pay this out in case of a 100% result and refund it when this is not achieved, but this can also vary per platform. We have listed some of the best-known crowdfunding platforms for you. This way you can easily compare them.

If, from your expertise, you yourself have knowledge that would fit this topic, or if you see opportunities to improve this text, we look forward to receiving your message at info@cultuuracademy.nl.