Why is Crowdfunding Popular?

Why has crowdfunding become so popular? Advantages and disadvantages of crowdfunding
  1. Being part of the struggle

    Those who fund themselves via crowdfinding have a dream and need all the help they can get to achieve them. People identify with such struggles and are more inclined to join in and be part of the struggle. Everybody wants to be part of a success story and crowdfunding allows them that.

  2. Being part of the group

    Crowdfunding campaigns are funded by thousands of people. Because people want to belong to and identify with a group, many join the funders to feel better about themselves.

  3. Novelty

    Crowdfunding campaigns are very creative and many products or services presented there are original ideas. The human mind likes everything that is new and finds it exciting and crowdfunding fulfils that need easily.

  4. Lack of censorship

    Crowdfunding campaigns ask for their funds directly from the customers. This way censorship is completely avoided – there is no bank, angel investor, producer, publisher or any other investor who could limit the creative freedom.

  5. Many choices to choose from

    Crowdfunding campaigns offer variously priced reward levels. A person can fund a project with just $1 or even with $10,000. The many choices available are a great way for anyone to contribute.

  6. Makes people feel special

    People like to feel special. Crowdfunding gives people a chance to join an alternative way of funding projects which goes against the existing system. Supporting crowdfunding makes people go against the flow and feel special.

  7. Nostalgia factor

    Many of the crowdfunding projects are trying to revive products and services which were once very popular. For example, old video game titles benefited from the nostalgia factor very much and have successfully funded almost all their campaigns.

  8. Getting a better deal

    Crowdfunders usually get a discount on the products and services they help fund. This increases the interest from people as they benefit a lot – they get the product at release day one but cheaper than regular customers. (See Why Amp pages are good for your site?)

  9. Constant updates

    Crowdfunders are constantly updated with progress on the products or services they support. The weekly development progress and the customer’s input into development decisions keep the people engaged to the point of shaping the final product with their input.

  10. It’s a trend

    Crowdfunding is a new concept. Because of that it draws extra interest from people and journalists. People like following trends so they’re more likely to get involved.

  11. Proving grounds for new ideas

    One of crowdfunding’s biggest strengths is that it allows testing the ideas before they hit the market. If the idea is good, it will get funded. If it’s not, people will shun it. This makes it very appealing to individuals, small companies and even large companies. (See Methods for increasing client conversion online)

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