More and more people are using crowdfunding to pay for their projects and create new products. Usually, the way to do this is to use the Internet. Instead of trying to get a few people to give thousands of dollars, you get hundreds of people, maybe thousands, to give a few dollars. But this is still not easy. You want people to see the value of your idea. How will you get them to give the dollars they earn to you?
There are websites that make this possible. Kickerstarter and GoGetFunding are popular. What you have to do is to create a short video to explain your project. Many people begin by explaining what the product is and then telling why people need it. For example, one of the most popular crowdfunded products is a watch. The Pebble watch connects with information on a smart phone that will send information to the watch. More than 65,000 people gave money for this product. And finally, Crowdfunding raised $10.3 million for it. However, it's not just products that people use crowdfunding for. People use it for their music, film, art or writing projects.
Projects usually get from 25 to 40 percent of their money from crowdfunding sites. Who is giving all the money? When people need money, they often ask their friends and family. Crowdfunding often works the same way, but once you create your video and message, your friends share it with their friends Why do these people give? First, there is the "feel good" factor. Giving money makes people feel good. Second, many small businesses offer rewards to people. Third, sometimes the reward is simply getting to use the product. And this is part of the success of crowdfunding. You could make a difference.
