TOP CROWDFUNDING MODELS YOU MUST KNOW ABOUT!!!


Crowdfunding has become an increasingly popular financing alternative among entrepreneurs. We tell you what Crowdfunding models are available and how do these models help you in your campaign:

“All or Nothing” or “whatever you get”

The most common among Crowdfunding models is “All or Nothing”. It is that you stay with the funds only if you have managed to collect the minimum amount requested for the given date. It is quite common for projects to raise above this minimum and to add more ambitious targets staggered during the campaign. But if you do not get to the minimum there is nothing.

In the other case, you stay with whatever you have achieved, regardless of whether or not you reach that minimum.

The first model gives more confidence to potential contributors as in this you give the feeling of greater commitment on your part. In addition, commissions of the Crowdfunding platform on “All or nothing” model tend to be lower for. Not to mention that many projects really cannot get anywhere without this minimum. Perhaps this is why the “All or Nothing” system is the most popularized.

Donation Based Crowdfunding:

It corresponds mainly with initiatives of solidarity or humanitarian style to raise funds. You give nothing in exchange for what you receive. It is the gift of a lifetime. This model is often combined with “you get what you get” from the previous option.

The main characteristic of this type of platforms is that the economic contributions do not carry a consideration or reward, but the donors do it because it is a beneficial cause.

Investment or Equity:

It is not the widely used option (and even less in the cultural field) but deserves a mention. Participation is when the contribution works as an investment i.e. in exchange for their money, the patrons receive a percentage of the company shares in which they invest, depending on the amount contributed.

In practice, this model requires a lot of regulation because the investors become partners that will be able to give an opinion on the future of the company.

Loan or Lending:

In this model, the support is received in the form of a p2p loan (between pairs) that you commit to repay with interest. Those who opt for this form of financing offer an interest rate on the money they receive for their project.

Therefore, each investor receives the amount he contributed as consideration plus a certain interest rate that at times can even be fixed by himself.

Reward:

crowdfunding rewards

As its name implies, those who finance projects through this model receive a consideration. The rewards are defined by the entrepreneur who needs the money and are of the most varied types. The rewards presented in the Crowdfunding campaign can be one of the two types:

  1. Symbolic: In exchange for the contribution you give your supporter a symbolic sample of your appreciation. For example, an autographed photo or prominence in the credits of the movie. In this case, the contributors motivate them to see a certain project come true, be it a restored work of art, an equipped square, a modernized museum.
  2. Actual: here, in this case, you give your contributor a copy of your final product/ project you are raising funds for i.e. a copy of the book or disk etc.

Classification of Rewards:

  • Digital: usually the download of some type of file, be it the book, disk, etc.
  • Experiences: like a Skype conversation, a special thanks, tickets to an event, participation in the movie, etc.
  • Services: You can give them a painting class, an excursion, etc.
  • Product: it can be the product you are asking funds for or any other symbolic product

To attract more investors, in recent years, it is usual to offer a percentage of the estimated benefits of the project, but not a stake in the company. This, in addition to being more attractive to patrons, also helps validate the business because the entrepreneur gets an idea of how many people are convinced that their idea can succeed in the market.

5 KEY POINTS FOR SUCCESSFUL CROWDFUNDING CAMPAIGN!


Are you an entrepreneur and have a project for which you are looking for funds? Have you heard about crowdfunding and are you interested in this system of collective funding but do not know how to make a successful crowdfunding campaign?

This is the current situation of lots of entrepreneurs. Yes, crowdfunding is a viable and interesting solution for financing projects of all kinds, but for a Crowdfunding campaign to work well, several factors have to be taken into account, it must be efficient, clear, reach the widest possible audience etc. Here, we give you the main keys to make your crowdfunding campaign a success:

  1. Present a serious project, well structured and researched: It is not enough to have a vague idea explained in two sentences. If you want to attract investors you have to have studied it well and know the details. Only a well-defined project can be attractive to invest money in it.
  2. Choose the most appropriate Internet platform to publish your idea: Projects funded through crowdfunding can be of various types and the type of funding of these too. It is imperative to find the website that best fits your project; Keep in mind who the users of that site are; what kind of crowdfunding it offers; if the team is serious if it offers advice, etc. There are crowdfunding platforms adapted to all needs.
  3. Customize your campaign as much as possible: You try to attract the attention of investors, so you must introduce images and phrases that identify you, characterize your project and do not look indifferent to potential investors.
  4. Provide fair and proportionate rewards to investors: – except in cases of donation. It is essential that potential investors feel that it is worth their investment. Try that what they receive in return, whether an economic benefit, an object, an artistic profit, etc., is adequate and motivating.
  5. Use all possible resources to make yourself known: People cannot invest in a project they do not know. Do not be a passive spectator and try to promote your project and make it reach as many people as possible. Use social networks, try to appear in the local press, make a blog or website to explain your ideas, relate to other workers in the sector, etc.

With these ideas and a lot of effort, you can make your crowdfunding campaign, whatever the type, be a success. You can also finance your project through crowdfunding.

Dare to start now!

WHY CREATE A VIDEO FOR YOUR CROWDFUNDING CAMPAIGN?


When we start promoting our project and start a campaign on a Crowdfunding platform, one of the points to keep in mind is to create a pleasant and attractive video that defines and highlights the potential of your initiative. And not only that, also explain the main reasons why your partners or investors should support your proposal.

Why this Importance of Video?

Because with a well edited, fun and straight to the point video, we manifold our chances of success and get funding for our project. On the other hand, today, more and more mobile devices (tablets, smartphones…), and social networks are being used heavily among masses, hence, well-done multimedia content can become a rough diamond. Keep in mind that the video will be the letter of presentation of your project; it will be your first good or bad impression, that is why it is fundamental to exploit it.

How to Create an Eye-Catching Video?

Creating an eye catching and attention holding video is not that simple if you are not familiar with the basic principles of video creation. To help you get acquainted with these minor concepts, here we have penned down three essentials. Have a look!

1.     Use the KISS Formula:

I am sure you are aware of the KISS formula. If not, let me tell you. KISS stands for “Keep It Simple and Short” so this means neither drag your video nor make it complex. Rather make your point clear in minimum possible time. It is said that the ideal duration of a fundraising campaign video is between 1 and 3 minutes. The specified time is more than enough to catch the attention of potential investors and get your message across.

2.     Customize the Video

This means humanizing it with the presence of the idea developers in the video. It can be in the form of a narrator. The public wants to see the face of the people who have created the initiative.

3.     Give Confidence to your Potential Investors:

Let there be no doubt about what you offer and what do you want to achieve. Make it as clear as you can as this will develop a strong confidence in your potential investors. Using the video script and the visuals, convey confidence to your potential investors. Mind that above all of the people, public trusts more of the images. So utilize it well!

Now that you know the basics of creating a video for your projects’ crowdfunding campaign, pick the notepad and list down all the details you want to capture. Once you are done, the camera is your weapon! Good Luck!

Art Fusion Night- A Night Dedicated To Arts –


Merriam Webster defines art as “something that is created with imagination and skill and that is beautiful or that expresses important ideas or feelings”. Based on this definition art can be thought of as vague but not vague in a negative sense. Vague to a point of beauty. Abstract to a point of shared connection. All of us at some point or the other share connections through art and its related sub fields. There is a beauty in art and none of us can deny that.

Art Fusion Night (AFN) is an event platform based in Dubai which means to showcase undiscovered and unknown works of brilliance. Its a simple yet elegant idea. We tend to associate art with the big names: Da Vince, Gogh, Picasso and the likes and obviously the more contemporary ones as well. But without the bias of popularity, fame and social pressure into liking accepted forms of art, AFN is trying to build a reputation of elevating talents of unknown backgrounds. That’s what gives it an alluring appeal as an event platform. As by definition, art is something not to be associated with something concrete and definite so why do we choose to associate ourselves with certain names of creativity, certain paintings, certain styles? AFN lets you see the other side to creativity. Yes, AFN is not the only platform in the world to give a diverse nature to art but in Dubai it is an up and coming name with promotes a diverse nature look to art.

They have an alluring look to their campaign and their platform. Don’t believe me? Just go ahead and search for AFN on Zingohub. They have a professional team of people working on their campaigns to attract people to their cause. AFN serves to create the necessary funds for an idea that serves the purposes of ordinary people who haven’t been able to share their passion with the world. One of their last campaigns was funded up to 101%. They have a creative outlook on their campaign and their promotional videos capture that essence perfectly.

Quick Hint: If you are focusing on creativity in your campaign, look their page up on Zingohub, you’ll get loads of ideas on how to go about your tracks.


MKO is AFN’s founder, artist and host.

Their latest campaign is called Art/Fashion Fever. It is defined to be a night where the community of people who appreciate art can meet the people behind the showcased works. It is an event where according to AFN “ lifestyle and networking meet in perfect harmony”.

The great thing about AFN is that firstly it serves the needs of the people looking to be discovered and secondly it does not limit its definition of art to specific categories. Just look at what they are offering for their Art/Fashion Fever event:

–          Fine Art exhibitions
–          Live painting during the event
–          Performance Art in form of Music performances and dancing
–          Standup comedy
–          Fashion exhibitions & pop-ups
–          Auctioning of participating talents work

 

For more great ideas and to learn more about their work, go give them a look or better yet help them with this lovely cause. Promote arts, promote AFN.

2 easy ways to improve funding for a campaign –


Crowdfunding doesn’t have to be all professional and work oriented. You don’t always have to go to your marketing books and research in depth on how to end up getting funds for your idea. The fun thing about marketing is that there aren’t really hard and fast rules on how to get people to find your idea interesting. Yes, there are tried and tested ways that are helpful in conforming to but some aspects of your campaign can sort of be manipulated in individualistic ways that help in attracting attention. Deviate from the norms from time to time, try to be creative, experiment a little bit. Sounds a little vague and frightening doesn’t it? But there is a little secret to it upon which you can get potential funders and backers to support your campaign.

Well then, how about it, shall we delve into it, shall we make it less vague and more clear.

For all intensive purposes this idea serves as an example and according to your campaign you should choose to adhere to it or not. Consider a campaign that aims to gather funds for a music video

Offer Tangible Rewards

What you can choose to do is to create an opportunity for your highest potential funding backers to have certain rights over your campaigns final aims. So for example if you are involved in creating a music video, you can offer your backers a first look privilege. Secondly you can offer to add their names to the credits of the video. Thirdly you can advertise/promote, if applicable, a product they are working on, their business, their idea through successful integration into your video. Give them a tangible benefit in order for them to feel like they truly get some benefit out of backing your idea.

Special Privileges

Let your backers have special privileges to your music video so that there is an element of specialness associated for them. For example you can choose to give them direct/indirect privilege over deciding certain aspects of your music video. In such a case you can offer them specially created polls. In this poll you can create a multitude of choices in a certain aspect with regards to your video to which they finalize or have certain rights of input into the video making process. As an example you may be confused about what sort color to use for a particular actor/character’s outfit. You can create a poll, give a choice among the colors you have narrowed down and offer them an active role in the process so that they can showcase their funds in a more realistic manner. This will give them a sense of having been a part of it. Upon this involvement they will have the inclination to promote it to certain lengths because to an extent, upon your choosing, they had a role to play in it and that role will want to be showcased. Money cannot be showcased but visual representation can be. Play that to your advantage.

These are just two of some creative ways to go about your campaign. Use them as guidelines to come up with elements that suit your particular campaign. Rewards and privileges offer your funders direct access to your aims and they will have a greater incentive to invest into your idea. So there you go folks, a little creative secret from ZingoHub crowdfunding you may just have glanced over.

 

EMIRATI FRESH- A campaign by Simone Goodson –


Stand up comedy has prominently been a part of the entertainment world since the 18th century onwards but has radically taken off as a source of recreation around the world in the early 20th century signaled by the rise of technological advances in the entertainment industry. We have witnessed great comedians take center stage in the past couple of decades with the likes of Dave Chapelle, Robin Williams, Chris Rock, Russell Peters to name a few among the rising number of people taking interest in this part of the entertainment industry.

Stand up comedy started with a bang in the U.S in the past decades but now we are witnessing this trend and form of recreation and entertainment traveling to different parts of the world. More specifically, the UAE and its comedy scene will be explored and one of its rising members “Simone Goodson” who is looking to fund his comedy campaign, Emirati Fresh, through the crowdfunding efforts of ZingoHub will be the highlight of this article.As according to Simeone:

 Emirati Fresh is my perspective. As a native New Yorker, I found moving to the UAE simultaneously refreshing and overwhelming. As a comedian, I choose to tell my story through my favorite medium: humor.

The most significant comedy clubs in the UAE come in the form of names such as “The Laughter Factory”, “Dubomedy” and “Yalla Laughs”. Although prominent comedians around the world come and perform in UAE, the local comedy scene is still underdeveloped to a point where there is a lot of opportunity. Through the likes of “Yalla Laughs”, Simeon Goodson a native of the US has decided to pursue a part of his comedy career in the UAE. He is a talented professional in his area of expertise and has performed not only in the US as part of “Comedy’s best kept secret tour” but has also gone on to win awards in his performances in Dubai one of which was the “Dubai comedy festival’s: Beat the Gong”.

Currently Goodson is looking to crowd fund a campaign on a comedy film he is working to produce which aims to explore his story upon moving to the UAE. Sounds like a serious movie? Well, not quite. A comedian is best known for telling even the most challenging life decisions of your life in way which almost everyone can relate to and have a good little laugh over. Goodson wants to share his perspective on one of the bigger decisions he has made in his life with a humorous take on it. Why should you fund his campaign? Well its simple. He is an established comedian, surely talented and has a repertoire around the comedy industry. He is looking to build an image in the UAE and to an extent has already done so as he is signed with “Yalla Laughs”. But for every talented individual one step towards achieving your goal doesn’t stop you from pursuing the next one. This is why Goodson is looking to produce a film which explores a different take of life from the perspective of the thing he knows how best to do: Comedy.

ZingoHub is proud to be the platform Goodson has chosen to fund his campaign through. We are always looking to be the foundation upon which talented individuals such as Goodson and the likes of can pursue their future aims and goals. Be a part of his campaign because we surely believe in him. His campaign in ongoing and goes with the name of “Emirati Fresh”. Be sure to check him out.

The Seven P’s for Crowd funding Success by Zach Smith –


Social entrepreneur Zach Smith is one of the leading success stories of the crowdfunding concept. Over the successful launch of more than 100s of campaigns, Smith has raised an estimated $110 million in revenue.

  

He is one among many who have enjoyed tremendous success through crowdfunding campaigns. What better way to kick start your campaign than by learning from those people who have already made it through? It is a common saying among some parts of the world “why learn from the mistakes you make yourself when you can learn from the mistakes of others”. This is a very relevant saying when it comes to understanding and starting your crowdfunding campaign. You don’t start something unless you put in the effort to learn all of its ins and outs from all sides and all angles.

So in order to do that let’s start with Zach Smiths seven Ps for crowdfunding success:

1.            Product: The product needs to be appealing to donors. Why should they invest their money into your product? Ask yourself this question repeatedly when coming up with ideas to start a campaign

2.            Platform: Consider whether the business idea or the campaign is a good fit for crowdfunding. Some ideas just don’t entail the crowdfunding style and rather require traditional means of going about it.

3.            Pitch: One of the most important aspects of crowdfunding is your idea presented. Your idea might even be a world changing phenomenon but unless you can pitch it correctly nobody else will think so. Include videos, animations, creative designs but keep it brief because the shortest of details captures the attention of the donor.

4.            Promotion: According to Smith there are three components to promotion. The first is paid media which includes social media advertisements. The second is press which would entail newspaper and magazine promotions among others. The last would would be partnerships.

5.            Price: Lowering the price is an action which is ill-advised since later on in the campaign it much more difficult to raise. Be very careful about the price you set out for your product because going up and down later on becomes a problem.

6.            Probability: Keep numbers, statistics and facts in handy and be ready to convince your backers on how this campaign will turn out to be a success story. People love ideas but even more so with reliable numbers.

7.            People: You and your team need to be the right mix of people who can work out all of these aspects to crowdfunding efficiently, productively and with an innovative touch. Be mindful of who you put on board and whether or not they are suited to your idea.

Put all these seven P’s to success into effect and see enjoy the results for yourself. Although this guideline provides a generic approach to crowdfunding it isn’t worth a lot if you don’t bring add your own figurative P to it. Give it your touch, make it yours and reap the benefits.