8 sites to raise funds for your project or idea: Crowdfunding 101

Getting the financial support to start your unstoppable idea can be the only thing standing in between you and the successes of your dream.  Unless you are sitting on a mound of cash, you will need some type of funding resource to meet the needs of getting things rolling in the right direction.

Crowdfunding, as its name suggests, is a funding method where common people like you and me (the crowd) fund your personal or business project with their own money. There’s a term that we commonly use to describe this money-giving action; it’s called a donation.

Different crowdfunding site could have different a purpose or approach, but overall the concept is simple – you post your project to a large group of site users, or "potential investors", and they will fund your project with money if they are interested in the project. You can start a crowdfunding exercise for free as you will only be charged when your project has raised the full amount. There’s nothing to lose and this is great for publicity.

Kickstarter charges 5% fee for every successful project. As Amazon Payment is used to receive the fund, Amazon will apply credit card processing fees, which are 3-5% of your raised project fund.  You have to be a permanent U.S. resident with a Social Security number to receive funds for a project.
 

Indiegogo will get 4% from every raised fund, and 3% will be charged for credit card processing, plus $25 wire fee for non-U.S. campaigns. If you’ve applied for the Flexible Funding plan and your campaign failed to reach the goal, Indiegogo will charge 9% of the fund, but you still get to take the remaining funds away.

 

 

Rocket Hub charges 4% of the fund for successful project, and 8% for project ended without reaching the financial goal. In addition, 4% of credit card processing charge will also be applied.

 

GoFundMe takes 5% from each donation (the total donation) you receive. Depending on your preference, you could either use WePay or PayPal to process your payment; they both charge fees ranging from 2.9+% to 3.5%.

 

 

 

 

Razoo charges a very low rate, just 2.9% of your total fund. Bear in mind that this an all-in flat rate as other crowdfunding site often charge higher than 4% not including credit card fees.

 

 

 

This is pretty complicated. Generally, there’s a flat 4.95% charge for the profit fundraising event, but there’s a blurry transaction fee involved in extra charges. For non-profit organizations, you could choose from a range of account types from free, to one with a $199 monthly fee.

 

 

Generally Appbackr takes a certain amount out of your fund to run their crowdfunding business, but there is no fixed percentage here. The amount will depend on your app price, and it could even vary based on several factors. It’s recommended that you read the FAQ and contact them for clarification. This may sound complicated at first, but once you master it, Appbackr could be your goldmine for future app development projects.

  

 

So you’ve browsed through a list of quality crowdfunding sites, but in the end you still prefer to let an Angel Investor fund your company. If you need help getting their attention, Crowdfunder can help. Crowdfunder allows U.S. startup and small businesses to raise funds by selling equity, debt and revenue-based securities, while attracting Angel Investors and Venture Capital to your company.

Commitment Strategy, not an exit strategy

Everyone is looking to stat next company that will be bought out by the Corporate America.  Truth is, those situations are few and far between.  The odds of starting the next Instagram are slim enough, lets add on being bought out for $1billion...not likely.

"You need a commitment strategy, not an exit strategy"

Build yourself a company that you can live and manage for the long hall.  Give it all you've got- Not "just enough" to sell to the next schmuck.

"Would you go into a relationship planning the breakup? Would you write the prenup on the first date? Would you meet with the divorce lawyer on the morning of your wedding?" -REWORK
Unless you have some serious issues, the answer is no.

Focus on building a company that is successful, sustainable and competitive.  That is your best way for someone approach you for a buy out.  The real question is- will you be smart enough to sell when the time is right?

Keeping it simple, but doing it better.

RE:http://www.wired.com/business/2013/09/ev-williams-xoxo/

Coming up with the next big thing is always on the mind, but actually coming up with "that" flawless idea is always my biggest hold up.

Keep is simple, stupid. Or at least stupid simple...

I totally agree with Evan Williams in this article: finding the next big thing doesn't have to be the end goal.  Starting something that has already been though of by someone else, but doing it better can be a ticket for success.

Some people have the passion, but not the tools to meet their goals. Others have the tools, but no passion to venture out on their own.  Coming up with a team of like minded people is also a key for success. One should able to self-realize your own skill set's capabilities, then build a team around your company and it goals.

"The secret of getting ahead is getting started. The secret to getting started is breaking down your complex overwhelming task into small manageable task, and then starting on the first one."
-Mark Twain

Start your list.