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Crowdfunding turns around the traditional concept of making money in large quantities from a single source to search for much smaller amounts from various sources and use the network to achieve this. The Internet makes this a simple process.

In this principle you set up your project profile on a website and use social media, in addition to your personal network of friends, family, and work contacts, to raise money. You can hire Samit Patel Kickstarter consultants via online sources.

In the general free-for-all that the Internet offers criminals the opportunity to make money fast. You must use the official Crowdfunders with financial authorities in their jurisdiction (which Crowdfunder) and even then carefully consider the risks involved. We can identify three basic models of crowdfunding:

Reward-Based Crowdfunding: Reward investors may have little or no intrinsic value. He (or she) does not anticipate serious returns on "investments". This may best be seen as a contribution rather than an investment.

Crowdfunding: Saving Million Lives

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Loans Based Crowdfunding: Here we can identify two models of Revenue Participation – the investor receives a percentage of sales for a fixed period. No repayment of the loan principal.

Equity-Based Crowdfunding: Investors got shares in the business in which they invest. Investors are taking the same risks as you and just could sue Due Diligence before investing.

Crowdfunding Platform: A Google search for the Crowdfunding Platform generates 845,000 hits. Not all of these will be relevant and many are not honest, or at least good enough to become a party worthy of directing you as an investor. Some will be arranged – perhaps not as crowdfunder but as an Investment Advisor, Lawyer, etc that give them credibility.

 

Crowdfunding Is a Child of the Social Networking Revolution