Crowdfunding tools for Craft Makers, Artists and Small Businesses

27 September 2023

by Katya Buryakova

Crowdfunding platforms

Raise money for your craft business

Crowdfunding platforms are online platforms that facilitate the process of raising funds. They provide a way for individuals, startups, nonprofits, and artists to access capital and support from a wide and diverse audience. 

Here’s how crowdfunding platforms ‌work:

1. Create your project. Write a description of your project. It could be for a wide range of purposes, such as launching a new product, funding a creative endeavour, supporting a social cause, or financing a personal need like medical expenses.
2.  Set Funding Goal. Creators typically set a specific funding goal. It’s better to have a detailed plan, where you set how much money you need for your project.
3. Campaign Description. You can raise funds for materials, equipment, research trips etc. Try to provide detailed information about your project, including its purpose and how the funds will be used. You may also include videos, images, and other media to help explain your concept and involve more people in your project.
4. Choose a Crowdfunding Model. There are several crowdfunding models including:

Rewards-Based Crowdfunding. Patrons pledge money for rewards or products related to the project. These rewards can range from a thank-you note to early access to exclusive content and discounts.

Equity Crowdfunding. Investors receive equity or a share of ownership in the company for their investment. This model is often used by startups and small businesses.

Donation-Based Crowdfunding. Contributions are made with no expectation of receiving anything in return except for the satisfaction of supporting a cause or project.

Debt-Based Crowdfunding (Peer-to-Peer Lending). Patrons provide loans to the project creators with an agreement to receive their principal amount plus interest over time.

5. Fulfillment and Communication. Maintain communication with your patrons, provide updates on the project’s development, and ensure that patrons receive their rewards or returns on investment as promised.

Check out these Crowdfunding Platforms 

Please note that the effectiveness of these platforms can vary depending on your project or campaign, your target audience, and your marketing efforts

Patreon

​​https://www.patreon.com/en-GB

Patreon, with its user-friendly fundraising and subscription tools designed for artists and other creative individuals seeking support, has gained the trust of over 200,000 creators, spanning various fields such as podcasting, music, visual arts, and literature.

Mightycause

https://www.mightycause.com/

Mightycause is a great platform for nonprofits because of its affordability, providing one of the most cost-effective fundraising platforms for nonprofit organizations. Additionally, it offers certain tools and features for free.

Conclusion

Remember that successful fundraising often requires a combination of a strategy and a strong commitment to build and nurture a supportive community around your work. Regularly communicate with your supporters, express your gratitude, and keep them informed about how their contributions are making an impact on your creative journey.

Cases

https://www.patreon.com/karaleighceramics

https://www.kickstarter.com/projects/luck-lynx/catch-the-smoke-incense-holder-with-cat?ref=discovery_category

https://www.mightycause.com/organization/Craft-Alliance