Crowdfunding can be a powerful way for a business, project, or organization to generate capital. Crowdfunding is not a new concept for the internet with the first successfully known event in 1997. A British rock band, named Marillion, raised $60,000 to fund a U.S. tour by their fans (Startups.com, 2020). There are many different types of crowdfunding, but the most notable ones are peer-to-peer lending, equity crowdfunding, rewards-based crowdfunding, and donation-based crowdfunding.
Peer-to-peer lending; this form of crowdfunding is when friends and family loan money to launch a project or venture with the understanding that they will be paid back (all so known as bootstrapping).
Equity crowdfunding; this form of crowdfunding is when an investor or investors loan money and gain a stake in the business (Angel investing or stocks).
Rewards-based crowdfunding; this form of crowdfunding is when people donate to a business or project and receive goods or products which are tiered based on the amount donated (Kickstarter).
Donation-based crowdfunding; this form of crowdfunding is when people donate to a cause or project with no expectation of compensation or products (Gofundme).
Ariel Hyatt doesn’t specifically tailor the book, Crowdstart: The Ultimate Guide to a Powerful and Profitable Crowdfunding Campaign, to one specific type of crowdfunding campaign. Ariel Hyatt does not gear the book Crowdstart to the which platform the campaign should use or how to reward customers or investors but focuses on the path to a successful campaign. Crowdstart is divided into five sections; The Basics, No Crowd No Crowdfunding, Building A Great Crowdfunding Campaign, Your Complete Crowdstart Roadmap, and Five Secret for Greater Campaign Success. (Hyatt, 2016)
In our society, it is all too often that we are expected to take advice from authors, celebrities, and other business personalities about how to conduct our lives and this advice doesn’t work for the person giving it, then why should we listen. Ariel Hyatt had an interesting way of making me take notice of her point of view. Crowdstart, the book about crowdfunding, was actually funded by crowdfunding. Ariel Hyatt doesn’t just write about crowdfunding, but she works with independent musicians to help them launch their products which use the same techniques that she describes in the Crowdstart.
After finishing the book, I think the part that sticks out is the simple concept of being engaged with your supporters. Having a huge following on social media is not required with the help of advertising but keeping in contact with your supporters whether they are new or have been friends for years, contact is the key. Supporters in crowdfunding are buying into an idea or lifestyle and want to be informed on how things are going with the project or launch. A project doesn’t have to be covered on every social media platform but needs to have a location for supporters to check on progress. If the project is only on a website, traffic to the project will be lost because supporters cannot share your information with others that you might not have reached on your own.
Hyatt, A. (2016). Crowdstart: The Ultimate Guide to a Powerful and Profitable Crowdfunding Campaign. Hunter Cat Press.
Startups.com. (2020). The History of Crowdfunding. Https://Www.Fundable.Com/Crowdfunding101/History-of-Crowdfunding.