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What is crowdfunding

Many entrepreneurs wonder what crowdfunding is and how they can benefit from it.

Once we know the answer, it is essential to focus on the platforms’ rules, which can make the project turn into a nightmare.

So let’s see together what comes of it.

le financement participatif

 

What is Crowdfunding – The Rules of a Platform

It is wise to know that a platform has its regulations.

These regulations are usually general and vital to the safety of your campaign.

Unfortunately, most entrepreneurs don’t like reading bylaws. It’s true! They are long and tedious.

But OK! It takes what it takes to choose the platform that fits your ideal.

What to choose? A platform or a website 

But what does crowdfunding have to do with platforms?

First, it’s essential to understand that you could run a campaign as nonprofits do. So, do it directly on your website.

However, this is not the best method, as backers get lost in all the information.

It is undoubtedly better to covet a platform that has been designed specifically to attract backers to your project and not to immerse them in multiple pieces of information.

What is a platform?

You should know that a platform is a project host. It is a simple website that hosts multiple projects. And just like a traditional site, the money received must be transferred to a bank account.

So the platform never operates alone.

Usually, all transactions made by backers go through a payment provider.

These transact the payment to the platform account. For example, PayPal and Stripe are well known to all, to name a few.

In summary, if a platform is like a website, what more could crowdfunding bring me by using the services of a forum?

Instead of being alone to make your project visible, you will be several. 

Yes! You team up with the platform.

Here are some examples that the platform could offer.

1 – Your project link on the platform’s social networks.

2 – The creation of a video and promotion on social networks.

3 – Visibility during an event.

4 – Etc.

le financement participatif

What are crowdfunding and financial goals?

On the platform, you have a financial goal that you want to achieve. At least that’s the amount of money you need to do your project. Finally, the goal is reached, and the platform submits the information to the payment provider to release the funding to your account.

At this point, it may take a few weeks before you receive this money.

However, you have to be careful with the platform you choose. Know who the payment provider is and what their terms and conditions are.

Read the post Who can run a crowdfunding campaign.

Yours truly,

Guylaine Beauchemin
Crowdfunding project manager

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