What is crowdfunding you ask. You may not know the word for it (in fact Merriam-Webster did not know either until recently when they made it an official word in the 2014 edition of its dictionary). But we are pretty sure you know what it is – you know where people on Facebook are trying to solicit funds for a new business venture or perhaps medical expenses for a friend. That’s crowdfunding. Here’s the official definition:
the practice of soliciting financial contributions from a large number of people especially from the online community
Source: Merriam-Webster.com
It’s an easy concept to understand and it can be a valuable option to consider for a start-up business or small business than a traditional business loan, which can be time-consuming, restrictive and cumbersome. It was prompted by changes to funding regulations a few years ago and since then, raising capital for a business venture will never be the same.
Miranda Marquit, a financial journalist with Planting Money Seeds and an expert contributor to AllBusiness.com did research and writing about crowdfunding for her clients and readers and then had first-hand experience when she decided to give it a try to market and fund her book, Confessions of a Professional Blogger: How I Make Money as an Online Writer. In addition to the actual crowdfunding campaign, she says the process helped her get feedback and in turn make tweaks before the release date.
This savvy blogger was a guest on The Marketing Mojo Show where she guides listeners about crowdfunding best practices and how to make it work for your business. She also shares her experience on the front line of this non-traditional financing option.
Have you ventured into crowdfunding? Please tell us about your experience.
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