Why is crowdfunding better than having individual investors?

Everything always starts with an idea. All you can see around you, from the computer you are reading these words from to that cup of coffee you are drinking. It was first an idea that someone once had. Those ideas became realities thanks to the effort, actions, plans, and money. Nothing would be possible without money. Ideas are free but materializing them is not.

You may have the next best thing this world needs in your mind but to have it in your hands, you need funds to move that project from an idea-stage to the realization-stage. There are many different ways you can do that. You may invest your own money and savings into it, go to a bank and ask for a loan, apply for different fundings and sponsorships, approach individual investors and seek silent partners or you can try crowdfunding. Today we will tell you what crowdfunding brings and other methods do not.

When you have individual investors, one bank, two sponsors or any other method, your number of supporters is small and there is always strength in numbers. It is not about bragging rights but the ability to say that a thousand people gave you money. There is a certain amount of power you get by being able to claim that the crowd believes is you so much they are willing to support you financially. The bigger the crowd, the bigger your credibility. Individual big sharks that are willing to invest will have more trust about projects that have the crowd behind them.

You may think that you know it all and have it all it but allow us to burst that illusional bubble for you, you don't. You don't even know what you don't know. This is where others come in and provide a deeper insight, advice, help, and constructive criticism. You will not get advice and new ideas from your bank. You will receive money but that is it.

Having one or just a couple of places that your money is coming from means that you are having just one or a couple of minds that are willing to help you. You future business partner may be one of your Backers and you never know what you are missing and forgetting until someone points it out to you. With so many people in the world, there is a very small chance that you are the only one with that specific idea in your mind. There are others and they are willing to help you succeed. Use that to your advantage. Take from the crowd what the crowd has to offer. It is always so much more than just money.

If no one knows about your project, no one can support it. It is quite logical. This is why we are always reminding you about sharing on social media and promoting your project whenever you can. Hiring a marketing expert will definitely help and pay off but you will have to do most of that hard work at the beginning for yourself. Not completely alone, of course. This is where crowd helps too.

We are sure that you are well aware of how many people use social media networks and that most of them are on more than one platform. People like to share with others what they find interesting. Facebook, Instagram, Pinterest, and others are full of links, images, and videos. When your project is liked by a person, you can almost put your money on the fact that the person will share it with others. It may be on social media or it may be by talking to a friend over a cup of coffee. Your project will be talked about. This is something you will not get from a bank. Exposure, free marketing, and free promotion. You will get all this simply because it is in human nature to share with others that which they like. All you have to do is create a project that people will like :)

There are many benefits you get from crowdfunding that you don't see anywhere else and those benefits are the reason why more and more people are recognizing Fundition as the best place to transform their idea into reality. One of the best things is market research. The crowd is your first place to test your product and see will it live or die. It is a great safety measure. Imagine you get a bank loan, start manufacturing a new type of coffee mug and then end up in your garage with million cups that no one likes. With crowdfunding, by getting the reactions from the crowd, you will know how the market breathes.

We have already told you about free marketing and all the feedback you may receive just as we have informed you about market research and the credibility you get with having more supporters. We have also mentioned potential new partnerships and promotional activities in real life. Two other aspects that we can not leave you without are loyality and pre-customers.

People in your crowd will be the first ones to buy the product and respond to the next ones. The crowd is always loyal because they feel invested in what you have been doing. It has become a part of them. They are excited to not only support but to try out what you have to offer and they will be there for you on your journey. This brings us to pre-orders. You can sell your product or even just a concept long before you have brought it to market. Some even say how this is the biggest benefit of crowdfunding, to pre-sell and collect pre-orders.