Are you a developer willing to create an app? Do you need some finance to finish your app development process then crowd funding can be the best option for you. For developers, it is difficult to get the fund as well as traction for the app they are developing.
Crowd funding is tried by many but most of them have failed. The reason; they lack the techniques on how well crowd funding must actually be used. Here, we have come up with some ways as to how crowd funding can be used to get maximum finance for your start up app.
Ways to use Crowd funding in proper way:
Well, before we actually understand how crowd funding can be used in efficient manner let’s first learn what exactly crowd funding is?
So, crowd funding is getting others to finance the development of any product or project, business work or art. This is useful for entrepreneurs thus reducing the upfront costs due to which many start-ups stop their projects before actually beginning.
The two well known crowd funding platforms that are most popular in today’s market are “Kickstarter and Indiegogo”. Many of the success start-ups as well as crowd funded projects have started using this concept from these sites.
So, how can this concept be useful for app developers?
Hope you are here because you have somewhat made your mind to crowd fund your app. So, first of all the need is to select a perfect platform that meets your needs. For that, you must understand the platform properly before actually using it for your app or software.
Crowd funding platforms are mainly based on three different approaches which are as follows: donations, equity as well as reward based crowd funding; each of one having its own pros and cons.
Let’s understand these approaches in detail:
- Charitable Campaigns: For apps and other such innovative ideas, this type of platform is useful. Certain crowd funding sites like as GoFund Me, Razoo and Crowd Rise are the perfect examples of this type of platform.
Using such platforms; individuals can easily raise the required funds to fulfill their passion or transform the world into something better. However, these sites are considered as less reputable.
- Equity Crowd Funding: In this type of platforms, the supporters get something from the business for which they are funding. Several websites like AngelList, CircelUp and CrowdFunder work on this platform.
These sites bring investors and entrepreneurs who are in need of cash are brought together. Yes, the main drawback is absence of investor commitment that leads to less attention and help. For established softwares like Dash, such websites are useful.
- Rewards based Crowd Funding: In such type of platforms, the start-up businesses sell their products so that the money earned from the products can fund their project. Some of well known crowd funding sites that are based on such model are as follows:
- Rocket Hub
We feel this blog post has answered some of your questions regarding crowd funding. If you need some more guidance or have something to share that will help app developers then you can get in touch with Softqube Technologies, Android App Development in India.