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:
- 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.
- 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.
- 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.
- 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.
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Mightycause
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.
Pros
Cons
Compatible with customer relationship management (CRM) systems, like Salesforce
You can request a demo for free
Social media integrations available
Option to set up year-round fundraising, special events, giving days, and crowdfunding campaigns
Features like CRM integrations are a part of the platform’s paid plan
Indiegogo
Indiegogo is supporting over 800,000 creative ideas worldwide since its inception in 2008.
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Kickstarter
https://www.kickstarter.com/uk
Kickstarter is the largest crowdfunding platform in the world, and it’s helped launch some very successful businesses.
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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.mightycause.com/organization/Craft-Alliance