Why Communities Play An Important Role In Crowdfunding
Communities play a significant role in economic development. So community-based economics is a system that advances local replacement. Hence community-driven economy is an initiative, wherein the decision making, development process, resource handling, and other authorities are directly vested in the hands of people in the community.
This strategy should be taken into consideration by the government, which can aid in the Economy’s development. There are several approaches to bring in Urbanism, in the right way. Which includes, Cultivating Local economies, Helps in increasing exports, gaining funds to attract new business, etc.
Out of the factors that influence the success of crowdfunding like Timing, ambition, and reputation, communities as well contribute to the success of crowdfunding to a greater extent. Just like any other online community, crowdfunding platforms are a practical space, where people involve themselves in the exchange of ideas, resources, and converse with each other.
Therefore, a substantial number of crowdfunding users can be taken as active members of the community and can be trusted with true commitment to other peer members. Crowdfunding requires a significant role of the community for it to achieve the set goals and aims. There are various steps involved in the crowdfunding process, and each of them somewhere requires the help of the community. Like,
When entrepreneurs have decided to raise their funds through crowdfunding, the crowdfunding campaign and the related work must be well-prepared by the startups, and to do the same communities can pitch in their efforts in preparing the campaign. Preparing for the crowdfunding campaign requires all the efforts before the campaign launch. And the pre-tasks include video editing techniques, writing an authentic description.
In the urge of getting substantial knowledge and skills, creators rely on communities by utilizing likely existing project as models of their own, and by gaining insights from the blog posts and advice from the existing project creator in the market. To gain knowledge from others, crowdfunding platforms can provide project search capabilities, finding project ideas based on location and category. Inquiring other projects which help creators on return and reward options, video ideas and way of communicating with the backers.
2 Test the campaign material
Before the actual sale or launch of any product/service, it must be well tested and then presented it to the public for the purchase or experience of the product/service. The best way the creators can test their campaign materials is by taking feedback from their own networks and communities of supporters. To achieve a successful crowdfunding campaign, the creators should be insisted on seeking regular feedback on and before the campaign launch. Creators entitled to get their first feedback from their close networks and relatives. They prefer to be judged in a private setup of close networks rather than the public audience where there are chances of their campaign materials getting rejected.
3 “Getting Publicity,” or “Increasing Market Traction”
A successful crowdfunding is not just achieved by the perfect idea or by perfect planning, it also requires an ample amount of publicity to win the hearts of the crowd. Every entrepreneur puts an effort to gain the required publicity for their product/service. And to achieve market traction and trust for their project.
Therefore, communities would be of great help in that case. If the communities are well satisfied and happy with the idea, projected by the entrepreneur, they would not hesitate to spread a word about it to their near relatives and friends. And in return generate a huge convertible audience out there, which would result in good assistance to the entrepreneurs.
Apart from the aforementioned crowdfunding work, there are reciprocating resources, including providing crowdfunding advice and fund backs to the community. The creators give back knowledge by posting respective online insights, such as blogs and articles, or rather motivating people to contribute in return for promising rewards.
The crowdfunding creators and the community relationship is more of a support and constructive rather than competitive relationship. It’s essential for the creators to take the advice from the community in a constructive way, and put it to use in their crowdfunding campaign for a successful crowdfunding.
The Valuation of crowdfunding depends on a Socio-cultural environment, wherein the decision of what project needs to be funded or not, is vested in the hands of the society. Therefore, the creators may trust the community as their work is continuously being watched out by the consumers throughout the campaign. The creators recognize the benefits of getting feedback from the crowd. And those entrepreneurs who want to test their ideas with the crowd, usually face difficulties in finding substantial motivated people to get full-fledged feedback, also get assistance from the crowd.
Crowdfunding work is a mix of distributed work and community work, as the creators work with varied distributors and supporters to build their campaign while seeking help from hundreds of people whom they have never met.