People are so excited about online fundraising or raising capital through-out crowdfunding platforms, they even brag about it every day on social media such as twitter, facebook, Instagram, Linkedin, Pinterest, Tumblr, Google+, Google Hangouts, WhatsApp, Imo, Vimeo, Youtube, VK, Qzone, and more. More than that those people are posting photos, videos, Podcast non-stop via email to your inbox to harassing you pretended that everything is great and easy, show-up they lifestyle with fancy cars, beautiful houses instead of telling the truth and the secret hiding behind crowdfunding platforms.
Eventually, it’s sound so great and attractive to know there are many online platforms available that allow anybody uses them to raise fund for personal and social purposes or to launch a start-up business or a project you believe you can archive. Nothing could be more excited and motivational than such of a noble idea and people just jump into it without calculating the consequences they may face along the road.
What are crowdfunding platforms really doing behind the scene?
Using crowdfunding to raise fund is really a complicated process, because those platforms are building to make for they own profit, and they do not care about your goal, your need and they will do everything possible they can to stick more money from you, and the backers over and over by keep you in a circle for spending more money with them and their affiliates, partners and acolytes.
Crowdfunding platforms are true money predators companies built to create an empire legal cam for sucking money from the public, by using internet marketing, targeting online persuasion aggressive marketing technics to create a vicious cycle and manipulate users and visitors using their platforms from one way to another.
Whenever somebody reaches a crowdfunding platform to raise fund to back a cause, to solve a problem or to find people invest with you on an idea or project, this person will find a very attractive crowdfunding platform invite him or her to use them for creating a project file to upload your story, picture, and video as the beginning step of raising money.
Flowing this step the person the platform will invite the user to give some pertinent information: your social security, your baking credentials, your account & routing numbers when you finish your project will running live on the Internet.
From this point the game of ripping you off will start, because what is happening behind the scene is the crowdfunding platform you have pick, regardless the name they are doing business on is en really a multilevel marketing pyramid built specifically to make you buy services and product from them for the rest of your life.
Because the crowdfunding platform you choose to enroll yourself in, an umbrella company with a niche of other companies doing business under different other names under the main entity. The platform is also a network of many independent contractors working from home paid commission using as a task force with a specific mission to convince buying a list of products and service from them.
The method they use is email marketing, targeting marketing, phone calls, Facebook advertising, to display specific ads in front of you to force buying more from them. If you do not buy services or product from this crowdfunding platform or they referral associates network you will never be able to raise a dollar.
What are those crowdfunding platforms selling behind the scene?
The are eliminates, after you enrolled and running your campaign live online, you will be bombarded by junk emails from an Amada of third companies and independent consultant bombarding you with email marketing with offer for video editing, contents writing, updates, press release, social media posting, send emails to backers, selling your email list and much more.
Crowdfunding for education
This nonprofit crowdfunding platform makes it easy to raise money for any classroom in need of funds. Public school teachers across the US use the site to create classroom project requests. Charity Navigator gives DonorsChoose a four-star rating, due in part to the site’s transparency and the amount of control given to each donor.
Fees: Third-party payment processing charges of 1.5% represent the weighted average of fees across all payment methods used by donors. Credit card or PayPal donations include a fee of about 2.5%. The site charges no platform fee, as operating expenses are covered by voluntary donations to the nonprofit.
GiveCampus partners with colleges to help students, alumni, parents, and faculty launch crowdfunding campaigns for school-related projects. Each school has guidelines for what type of campaigns people can create. Funds raised go directly to the school itself. It’s free to create a campaign, as long as your school is partnered with GiveCampus. GiveCampus claims that 27 of the country’s top 50 colleges use its platform.
Fees: Schools choose from two fee options: a monthly subscription or a small percentage of funds raised.
Piggybackr provides a fundraising platform where parents and students can raise money (as a team or individually) for school projects. It’s the only crowdfunding platform that allows fundraisers from children under 13. Piggybackr gives students points and badges for their fundraising efforts.
Crowdfunding for personal causes, nonprofits, and more
With Fundly, either individuals or nonprofits can create campaigns for a wide range of causes, including fraternities and sororities, LGBT, military, and politics. One unique feature of Fundly is that you can sell t-shirts or other merchandise on your campaign.
Based in Vancouver, Canada, FundRazr hosts crowdfunding campaigns for causes such as sports teams, schools, and nonprofits.
Fees: FundRazr has two pricing options: individuals can choose a free fundraising model with no platform fee (supporters are asked for optional tips), and organizations such as charities can choose a “professional” model with a 5% platform fee and advanced fundraising tools.
GoFundMe is the world’s largest social fundraising platform with a giving community of more than 50 million worldwide. More than $5 billion has been raised on GoFundMe for personal causes, and it’s the first and only platform with a donor protection guarantee. GoFundMe is known for its customer service, and it has Customer Happiness agents available 24/7.
CrowdRise helps nonprofits use social fundraising to make a difference. CrowdRise is owned by GoFundMe.
Fees: Platform fee: 3% to 5% of funds raised, plus a payment processing fee of 2.4% to 2.9% plus $0.30 per transaction. Premium and enterprise models with advanced features and service are available.
Classy is designed for fundraising teams working collaboratively, and the site comes with a campaign reporting tool to help track fundraising progress. Another site feature helps teams organize volunteer events, including ticketing and event registration. If you’re part of a robust organization with a large staff working in multiple locations, this could be an excellent choice.
Fees: Doesn’t disclose pricing for premium offerings (contact the site for a quote), but services start at $499 per month.
Crowdfunding for creative projects
Kickstarter is a hub for creative people and projects. Creators seeking funding for particular projects can use the site to raise funds and bring the project to life. Creators (ranging from individual designers and inventors to large corporations like GE that want to test new product ideas) offer backers rewards, such as a small piece of the project, the first available prototypes, or the products that they are raising money to manufacture. The site is especially good for tech projects, as its community is full of early adopters. You must raise all the funds you need, or get nothing.
Fees: Service fee of 5%, along with 3% + $0.30 per transaction for payment processing. All or nothing.
If you want help at every stage of your creative or entrepreneurial project, from the moment you have the idea to after you start selling, this site offers tools to help you get the job done, from pre-launch to crowdfunding and distribution. It’s especially good for technology and media-related projects. You can choose either all-or-nothing and flexible funding. The site encourages fundraisers to offer perks that engage fans and spur donations.
Fees: Platform fee of 5%, along with 3% + $0.30 per transaction for payment processing. Choose between all-or-nothing and flexible fundraising models.
This crowdfunding site allows you to gather recurring patronage for your art or other creative projects in the form of monthly subscriptions from fans. Patreon encourages users to offer rewards to fans as a way to repay them for their support.
Fees: Platform fee of 5%, along with 3% to 5% plus $0.25 to $0.35 for payment processing, plus “payout fees” of either $0.25 to $0.35 or 1% per payout (capped at $20 for PayPal disbursements). Additional fees apply to payments made by international donors.
Crowdfunding for entrepreneurs
Fundable focuses on helping entrepreneurs, startups, and companies raise capital from the public. The site allows users to offer either rewards or equity in return for financial support.
Fees: $179 a month, along with 3.5% + $0.30 per transaction for payment processing. All or nothing.
If you want to grow your existing business, WeFunder can help. Your investors receive a small stake in your company, and the platform aims to increase their emotional investment in your success.
Fees: $195 to start, 4% fee for “regulation” crowdfunding, plus the value of stakes in your company.
This equity crowdfunding platform allows businesses to sell shares to accredited investors. Crowdfunder has a network of 12,000 venture capitalists and angel investors.
Fees: $399 to $1,999 per month.
As an equity crowdfunding platform, Seedinvest allows startups to raise funds from individual investors and venture capital firms. Entrepreneurs must meet their minimum funding goals before investments are made final.
Fees: 5 to 7% placement fee with a 5% warrant coverage or equity, plus a $0 to $4,000 fee for escrow, marketing, and legal expense reimbursements.
Crowdfunding for real estate
PeerStreet offers private real estate loans from accredited investors. As a testament to its transparency, the site also opens up past investments to review and scrutiny. Loan duration is between six and 24 months, with loan-to-value ratio usually under 75%.
Fees: 0.25% to 1% service fee on the total loan amount.
17. Real Crowd
Fees: Minimum investment of $25,000 to $50,000. Fees charged to those who list investments, not investors.
18. Realty Mogul
This site brings its users together to invest in residential and commercial real estate. Both accredited and non-accredited investors can use the platform. Each investment has a fee that varies depending on whether the investment is a loan or an equity purchase.
Fees: Minimum investment of $2,500.
For engaged couples or newlyweds, this crowdfunding site helps raise funds for a wedding, honeymoon, or even the down payment on a new home.
Fees: Free basic level. $39.99 for Honeyfund Elite, along with 2.8% plus $0.30 per transaction for payment processing.
Slated is an equity crowdfunding site for movies. This start-to-finish platform helps with funding film projects, finding talent, and distributing the final project. It also offers extended services such as script analysis for an additional cost. You must be referred by a current member to become a member yourself.
Fees: Equity in your film.
The only crowdfunding site dedicated to scientific research, Experiment helps researchers raise the funds they need to pursue new discoveries. Backers can review their impact through open access to data and the resulting journal publications. Experiment has a funding success rate of 47.1%. It’s an all-or-nothing model.
Fees: Platform fee of 8%. All or nothing.