DEV Community

Cover image for How to use a crowdfunding platform
Merehead
Merehead

Posted on

How to use a crowdfunding platform

Many people have heard about crowdfunding platforms. But not everyone understands how to use them correctly and that this can be a very profitable business.

Crowdfunding platforms provide an opportunity to raise money for your idea. Whether you can achieve the goal depends on the amount you want to receive and on the idea. A very interesting fact, it is not always possible to predict the success of your project. You may have an interesting idea, but you will not get money, on the other hand, the idea may look a little unrealistic, but at the same time, you will collect a lot of money. This is all due to mass thinking. What is relevant now, how do people live, what disturbs them, what is their mood? Some projects may not take off today but may receive investment next year.

For example, eco devices are gaining popularity, for example, 10 years ago, such projects would not be interesting for investing.

There are many crowdfunding platforms on the market now. The most popular kickstarter, it was founded in 2009. Today, the platform is visited by about 1 million users daily. A huge number of people are looking for promising projects that in the future will become world leaders and make a comfortable future for investors. According to statistics, the average cost of a project on Kickstarter is about $11,000. If you want to successfully close the project, we recommend collecting the amount in the range of $8000 - $14000. In this way, you can get into 60% of all projects that successfully close the round of investing.

Alt Text

Of course, you check how to build a crowdfunding platform and start to earn money by a fee. For example, kickstarter charges 5% of the amount collected. Thus, if the average check is $11,000, then you can earn $550 from each successful project. With about 100 projects per month, your income can be over $50,000. Given the development and advertising costs, net profit can reach $10,000 - $20,000 per month.

Let's look at the most unusual projects that have raised a lot of money for their startups.

Unique shaped earbuds that fit your ears. Headphones are printed on a 3D printer individually for each customer. They are fully consistent with the shape of your auricle.

Alt Text

Self-cleaning t-shirt. The fabric makes from materials that do not absorb liquid. Very practical clothing has gained great popularity on kickstarter.

Alt Text

As you can see, a good idea can be very popular and allow you to raise money to start a business.

Top comments (0)