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Hello Fellow Entrepreneur!

Thank you for being a part of our community! We wouldn't be here without you :).

Welcome ! :) This week's issue of your favorite ezine has arrived! In this issue, we will be talking about how crowdfunding is going to be the next big thing to hit the home business world.

So, grab yourself a coffee... sit down in your favorite chair... and read on (as well as put on your thinking caps... lol). This issue of The 24KaratMarketer Ezine will become your blueprint to starting your own profitable home business!

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  • ** FEATURE ARTICLE ~ Want to Submit an Article? Contact Us Here

    What Is Crowd Funding?

    By Yuan Yudistira

    Tip jars, sponsorships, donations, micro patronage - it is known by many names. No matter what you call it, it all comes down to individuals providing direct financial support for the work of others through contributions over the Internet. In one form or another, crowd funding has existed since the beginning of time. However, the Internet has taken things to an entirely different level.

    SPREADING THE WORD THROUGH CROWD FUNDING

    Crowd funding may be something as modest as an anonymous donation button, or it may include thank you gifts, special privileges, special recognition, etc. However, it always consists of a few key factors, such as:

    • Patrons may contribute as much as they may like, whenever they feel like it.
    • If wealthier patrons want to contribute additional funds, they may; no money is ever left on the table.
    • There are minimal intermediaries, with contributions going directly to the proposed beneficiary.
    • Spread of content far and wide is encouraged without restriction, just as long as the opportunity to make contributions remains intact.
    • Supporters are able to make a real difference by funding work about which they are passionate.

    Crowd funding works closely with social networks and other online communities to raise necessary funding. In order to collect the finances that you need to support your project or idea, you do not have to worry about collecting names and email addresses to form your own new group of supporters.

    You can promote your ideas to a community that already exists. More often than not, a crowd will form suddenly from dissimilar groups all around the world. These groups consist of people who just happen to all have an interest in contributing funds to a particular event, project, campaign, person, etc.

    The greatest advantage to using the Internet for crowd funding is that it makes it possible for information to make it all around the world, effectively increasing awareness for the idea in need of financial support. A crowd-funding network is capable of assembling and disassembling at any point in time. This is the main variance between crowd funding and traditional co-operations.

    THE INFLUENCE OF THE CROWD

    The influence of the crowd is a major factor in crowd funding. Crowd psychology often plays a role in the failure or success of a crowd-funding campaign.

    Crowd psychology is a form of social psychology. Regular people are generally able to gain power by acting as a group. It has been shown through history that big groups of people have brought about sudden and dramatic social changes in a way that sidesteps traditional due process. In addition, crowds working together have also been able to provoke controversy.

    Social scientists have come up with a number of different theories to explain crowd psychology. In addition, scientists have also come up with several different theories regarding the way that crowd psychology is different from the psychology of the individual within that crowd.

    Sigmund Freud had a crowd behavior theory. He believed that people in a crowd act differently than individuals. His theory was that the minds of everyone in the group merged to form a new way of thinking. The enthusiasm of each member of the group would increase, and he or she would become less aware of the nature of their actions.

    One amazing social phenomenon that happens within a crowd is communal reinforcement. Communal reinforcement is an idea or concept that is asserted repeatedly, even when there is no firsthand evidence to support it. As time goes by, the idea or concept becomes reinforced into becoming a stern belief in the minds of many people and can often be regarded as fact by members of the group.

    Many times, the idea or concept can be reinforced even further by mass media publications and additional means for communication. The tendency to accept an idea that is communally reinforced without question is a common occurrence. Communal reinforcement is a positive force that is incredibly beneficial to any crowd-funding campaign.

    Online crowds come together virtually. They act and behave collectively, producing effects that would not otherwise be possible without the Internet. The dynamics of online users make it possible to make money with little effort involved.

    EXAMPLES OF A CROWD-FUNDING CAMPAIGN

    Politicians use crowd funding, charities use crowd funding, and even for-profit entrepreneurs are taking to the Internet in order to collect small amounts of money from many different supporters.

    Combine social networking with capital accumulation, and you have crowd funding.

    ==============================================

    About The Author

    Click here to buy the crowd-funding guide ebook at lulu.com

    ITStaff.asia is IT outsourcing [http://www.ITStaff.asia] service provider company based in Jakarta - Indonesia. We specialized in the field of IT Staff outsourcing.

    Article Source: http://EzineArticles.com/expert/Yuan_Yudistira/208558

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    How Crowd Funding Is Going To Change The Way Startups Acquire Investment And Funding

    By Aaden Bell

    Startups have changed the way people look at problems. Talented and hardworking entrepreneurs behind these enterprises are adamant about changing the world. Innovative technologies and solutions are going to help people cope with hardship in day-to-day life.

    Entrepreneurs seeking capital and investment have been lucky to have options like crowd funding available in the contemporary world. Varied important aspects and nuances of capital generation are listed here:

    • Crowd funding allows easier scaling: when you are raising endowment via crowd funding you are saving your startup from getting sold out. You can have the requisite money in your satchel and still be the owner of your business.

    • Never lose the control: endowment allows you to allocate equities according to you. As an entrepreneur, you can always do the requisite calculation and acquire donation accordingly. This method allows you to manage the business better; with these types of donation you are always going to have a control on your business. When you go with angel investment you tend to lose the control.

    • Repaying is easier: Allocate equities according to the contemporary growth of the business.

    • People from around the world can invest: With this money generating method you are allowing people from around the world to invest in your business. Crowd funding allows you to get in touch with people who all are interested in your idea. You can always share the platform with the like-minded people and raise the required money for bootstrapping.

    • Acquire more than required: Donation can also help entrepreneurs in raising more money than what is required. Smart entrepreneurs are going to use the extra money for infrastructure development.

    • Any one can acquire funding: with crowd funding options any entrepreneur can raise seed capital. Running a business just got easier, it is important that you are concentrating on public donation for fund acquisition.

    43 percent of startups from around the world have acquired seed fund from the public domain. It allows enterprises to work on their own motives and principals. With resources raised from public entrepreneurs can keep their peace of mind intact and work towards their goal.

    Tomorrow is going to be challenging, but an entrepreneur must have a heart of steel. With these options, entrepreneurs are moving in the right direction without worrying about anything. Building your business from scratch is going to be no less than a litmus test. Entrepreneurs will have to be really patient. Innovation is the key for building efficient products.

    ==============================================

    About The Author

    Aaden Bell writes on equity crowd funding. For more details please visit on the website http://www.fundraisingscript.com

    Article Source: http://EzineArticles.com/expert/Aaden_Bell/855026

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