#AskaMentorMonday is about answering your crowdfunding and online fundraising questions. If you have a question, you can email a mentor at email@example.com, or check out our Frequently Asked Questions and Help Center. Ask anytime and we’ll discuss the most frequently asked questions every Monday.
Which Crowdfunding Platform Should I Use?
That’s the question we’ll be discussing today. Of course I’m going to tell you that Move Your Mountain is the BEST crowdfunding platform. But, you guys always want details and facts. So, let’s discuss.
Rewards or Donation Based Platform? Did you even know there was a difference? Donations based crowdfunding platforms are just that, people donate money with nothing expected in return. Rewards based platforms are those like Kickstarter, where you get something for giving something. Now would be a good time to narrow that field. I have seen people offer rewards on the donation platforms, but generally they don’t (or if they do, it’s a thank you card or picture, not a innovative new product). There are also Equity based and Lending based. Investors receive a stake in the company in equity based and are paid back over time in lending based.
Do You Keep All of Your Money? Crowdfunding platforms are all different. Do your research and find out if the ones you’re looking at are “all or nothing” platforms. These platforms require you to reach a certain goal in a certain amount of time, if you don’t, all the donations made go back to the donors and you have to start again. Is your campaign one that could still use the money, even if it didn’t reach its’ goal?
How Much Time Do You Have? Is your fundraising campaign going to take longer than 30 days, 60 days, a year? If you have a need that may last longer than 30 days, be sure you pick a platform that doesn’t have a restricted timeline for hosting campaigns.
Customer Service Savvy? Does your platform offer help when you need it? Can you email them with a question and get a quick response? Do they have a comprehensive Help Center that’s easy to navigate? Do they provide you with a Mentor that offers suggestions along the way to help you reach your fundraising goal?
What’s the Fee? The REAL fee? There are many platforms out there that claim they are free to use, when in fact, someone is paying that money. If not you, then your donors are. But, it isn’t free to use. Each platform will have a percentage that the company takes and a percentage that goes to the payment processor they use. That total amount is the amount of the fees.
What’s Your Niche? Some platforms will let you raise money for anything, others have a “niche” market that they cater to. Be sure you’re picking a platform that follows suit.
I’m sure you make a pros and cons list with many things….and this is no different. Take the time to compare the different crowdfunding platforms that are available.
Good luck on your fundraising campaigns…let’s get your Mountain Moving!