Crowdfunding raises money via small contributions from many people. It’s a type of crowdsourcing, which also includes collecting market insights.
Crowdfund for cash. Crowdsource for ideas. We show you how.Product developers create the best possible products these days by directly harnessing the power of crowds. If you need capital, you turn to crowdfunding. If you need market insights, ideas or micro-labor, you turn to crowdsourcing. We do this via online platforms like Kickstarter, social media like Facebook or Twitter, or even email or text message campaigns. Which channel you choose depends on what you want to do.
CrowdfundingCrowdfunding is an awesome way to raise money for product development. There is definitely campaign management involved in order to be successful, so we don’t recommend that you just post a GoFundMe and wait for the money to magically appear – but a well-executed crowdfunding strategy has incredible benefits:
- Raise the capital you need to progress to the next development stage.
- Earn opt-ins from a customer base interested in marketing communications.
- Generate brand equity from customer shares and crowdfunding campaign ads.
CrowdsourcingCrowdfunding is a type of crowdsourcing – the thing you’re sourcing is funds – but crowdsourcing can be so much more, too. An excellent example of crowdsourcing is Wikipedia. Lots of people from everywhere contribute to the massive, living encyclopedia and we all get to benefit. There are lots of interesting examples of many people making small contributions to a big project or product:
- Your Internet browser’s add-ons
- Android operating system (not too shabby, right?)
- GIMP photo-editing software
- Location permissions on your mobile devices
- Contests that ask for your take or opinion