We offer crowdfunding coaching and crowdfunding consulting for a variety of businesses, groups and individuals. What is different about our services is that this website is designed to give you much of what we provide for free. You may still want to hire crowdfunding consultants, but first we suggest reading through all of our free content to see what you can learn. It may be enough to at least get you started and save you at least some of the money you would have used on a crowdfunding consultant.
Types of crowdfunding Coaching and Consulting
To understand the different types of crowdfunding consulting and coaching we have to start with an exploration of the different types of crowdsourcing.
There are three ways to think of the differences among these three is to look at what you “own” by buying equity:
- In Equity Crowd funding for Start-ups you often own part of a new company. Thus you need to do research that points you toward assessing the entire business model, the people involved, and the business plan. The challenge is determining whether their product or service will find success in their market. Often the excitement of backing a new venture is often motivating.
- In Equity Crowdfunding for small businesses you own part of the success of an entire existing small business. You still need to research the overall business plan and people behind the company. However, you can also measure the success so far.
- In Equity Crowd funding for business expansion you often own a part of a new geography, modified product, or business process. In practice this can resemble either one of the above. You may specifically own just the business in a new geography. Or maybe you will get a piece of the success of the entire company after an upgrade of some sort.
Rewards based crowdfunding involves getting some sort of inside information, early product demos, meet and greets, or intrinsic reward for investing in a company, artist, or artistic production. Some examples of rewards-based crowdfunding include:
Music: Perhaps the best known type of crowd funding is the rewards-based type for Music. The payoff may lead to free tickets, meet and greets with the artists, early releases, etc. People who love a certain genre of music, a particular artist, or even want to support a certain geography where talented musicians emerge may be interested in this form of rewards-based crowdfunding.
Games: This category usually involves the development of video games, though it can also cover the production of new board games. In this case the investors may enjoy being able to get demos of new games, or early releases. There may be shortcuts that only insiders know about during the games.
Film: Similar to crowdfunding for music, crowd funding for film can include rewards such as early releases, meet and greets with actors or producers, and interesting insider information. It can be very hard for a new producer to get funding for a film from a major studio. Crowdfunding may be the next best thing.
Other types of reward-based crowdfunding
There are many other examples of this type of crowdsourcing. Each one shares in common that the payback to investors is non-monetary. However, the investment is seen as a win-win for the the investor and person or people receiving the money. In other words, if you are looking to get rewards-based crowdfunding the value of the rewards or the intrinsic value of the project to the investor has to be seen as equal to the investment.
Personal crowd funding involves an individual or small group getting money for a personal project or purpose. There are many types of personal crowdfunding, such as:
Fundraising: These investments are made to help individuals or groups raise money for a charitable cause. Crowdsourcing in this way gives many people the ability to promote a cause. They can also become part of the solution or the effort that backs that cause. This also gives donors a chance to give more personally and closely than they would if they were backing a large charitable corporation.
Music or other artistic endeavors allows investors to back a favorite artist or musician, or group or artists or musicians. The insider information, meet-and-greets, and early releases may be available. However, the investor does actually get a payback in this type of investing (as opposed to straight rewards-based crowdfunding above).
Education: This form of crowdsourcing is growing in popularity. It involves the crowd taking an interest in the education of a student who shows promise. The student is considered likely to pay back the loans with interest. Sometimes it is used for graduate education where the chosen field is likely to be fruitful for the applicant. Again the crowd in confident they will not default. Crowdfunding for education is an excellent way to both give back to a field or type of person you wish to support while also getting a repayment that effectively rounds out and diversifies your portfolio.
For our purposes we distinguish between “personal crowdfunding” and “peer-to-peer loans“. The latter are similar to traditional loans with a fixed or variable interest rate and defined term. Personal crowdfunding, on the other hand, may not involve any payback, or may have a payback that is dependent on the success of a project or purpose.
Crowdfunding Consulting and Coaching Background
You may have browsed many crowdfunding sites by now. There certainly are more and more every day. Perhaps you found that what you really needed was a place to get independent advice before you committed to a particular one. That is a smart choice. It is hard for websites to be “neutral” when they have a stake in your choice. We’re not saying that the best crowdfunding sites purposely deceive or anything like that. Rather, when you are selling a service your enthusiasm can limit the amount that you can be unbiased. Enter crowdfunding consultants like us. We present not only the many positives involved with all types of crowdsourcing, but also the drawbacks. We also show the instances where these crowdsourcing instruments are not a good choice.
Crowdfunding Consulting Overview
Above we went over the types of crowdfunding available. Now we want to show how crowdfunding consultants work with each:
Rewards-type crowdfunding consulting:
There are no regulations as to who can invest. The payoff is not monetary. Thus this type of crowdfunding coaching involves deciding which insider information, product demos, or other rewards you should use. In some cases meet and greets with people in the company or the artists is a reward. Maybe it is as simple as discounts and/or helpful information you can use for your own business or artistic pursuit. Rewards type crowdsourcing has been used to get films produced, bands noticed, charitable causes funded, and products launched. Crowdfunding consultants are rarely used for investors in this type of funding but they are used by those trying to get it to decide how to best attract donors.
Personal Crowdfunding consulting:
This is sometimes seen as a subset of rewards-based crowdfunding, but unlike rewards-based types, personal crowdsourcing may be requested for a meaningful project or purpose that certain investors may want to fund without any specific reward. Crowdfunding consultants may be hired by the person looking for the funding.
This type of crowdsourcing, at least for now, is only open to those with either significant income or a high assets, at least in the U.S. You will need to make sure you are an “accredited investor” in order to invest in equity crowdfunding. Theses investments involve financial risk and reward. Sometimes as the name implies the payoff is equity in a project or company. Other times it is some sort of interest rate that has been predetermined but is still contingent on the success of the project. A crowdfunding consultant might be hired by those on both sides of the equity equation. The next section goes over three sub types of equity opportunities.
Sub types of Equity Crowdfunding Consulting
It is important to take a step There are three subtypes of crowdsourcing for business, each of which may benefit from a consultant or coach:
This is the most common type of consulting right now. Startup crowdfunding consultants work with both the investor side and the business itself. The funding may include a new product or service that a person or small business has come up with. The expectation is that when the project becomes a success there will be a financial payoff. There could be a fixed amount of interest or a percentage of profits.
This type of crowd funding consulting, investors are counseled about receiving a piece of the success of a small business. The company looking for the investment is giving away a portion of their equity to the crowd so they might use consultants to map this out. They deem it worthwhile because it will help sustain them and give them a competitive advantage. These opportunities may provide a lower risk than having to pay back a loan to a bank. For example, if the business fails nothing is owed. The true risk of this type of crowdfunding is that the business will actually grow significantly and the equity crowdfunding investors will get more than their money’s worth.
This type of equity funding consulting is hired by an established business that wants to expand its product line or its geography, or sometimes when it just wants to improve efficiency and output in some way. This is different from other types of crowdsourcing in that the funding is for just a part of the business. As with small business crowdsourcing there is risk on both sides related to how well or not the product or service being funded does.
About this Website
Our aim is to provide information that is helpful for both the potential investor and the entrepreneur in all the types of crowd funding listed above. The whole area of crowdsourcing involves a dynamic relationship and we want to cover all sides of those relationships here. We can help you find the best sites for your purpose. We can help you prepare to be successful whether you have a project or purpose that needs to be funded. Or perhaps you are an investor looking to pursue a meaningful purpose or just diversify your investment portfolio. We will provide both rewards-type and equity crowdfunding consulting. Unlike many websites out there, we are not actually in the business of funding projects or even recommending specific crowdfunding sites. We will not be biased and can give you an independent overview. And all of our crowdfunding coaching and consulting will always be free.
You can navigate our website using the drop down menu above. Or of course you can browse our pages to gather the information you want or need. Here are some examples of the free crowdfunding consulting and coaching here in addition to everything listed above:
- Best crowdfunding sites: This page takes a look at the best crowdfunding websites out there for all types of investment or pitch. Our listing may not be comprehensive, but it certainly covers some of the better sites available. Unlike other websites, we are not an affiliate sites so we are not earning money for referrals to these sites. This keeps us unbiased and comprehensive.
- Best Rewards Based Sites goes over those websites dedicated at least in part to this subset of crowd sourcing
- Best Equity crowdfunding sites covers those websites that specialize, again at least partially, in this subset.
- What is Crowdfunding? is a page that goes into more detail than this one about what this form of funding is. It includes what the potential returns are for both investors and entrepreneurs.
Crowdfunding Consulting Disclaimer
Just like any other financial vehicle, crowd funding is not for everyone. We obviously cannot evaluate your own unique financial situation. Nor can we give advice on any potential investment in crowdsourcing. Whether you are seeking an investment for your own particular project or purpose, or thinking about becoming an investor, please make sure that you get advice about your overall financial situation before pursuing this path. This is especially true, perhaps only true, if you are expecting a return on your investment as with equity based investing. We are very enthusiastic about this potential choice, but it is still not for everyone.
This site does not promote any particular type of crowdsourcing or any specific website. We may use some well-known crowdfunding sites as examples. However, there are many good ones out there and you should carefully research which one is the best fit for your project or purpose.
If you are a potential investor, our advice is that you consult with a financial adviser before investing heavily. This is especially true if you are expecting or particularly if you require a return on this investment. You need to make sure that the risk/reward fits with your overall goals and your portfolio if you are looking for a return. If you are an entrepreneur thinking of applying for your project or purpose, make sure to research traditional means of raising money. Compare your traditional alternatives with crowdsourcing. Do your homework beyond this website and understand all risks and potential disadvantages. That said, in many cases the benefits will outweigh the costs!
Crowdfunding Consulting and Coaching in 2016
As the popularity of crowd funding increases we are now seeing two opposite forces working in the marketplace. On the one hand we are naturally seeing an expansion in what this funding is being used for. We see an increase in education and personal crowdsourcing for example. In a vacuum this would certainly be a good thing, except that there are those in government who fear that without regulation this system could be full of problems and glitches. Thus while the ways that equity funding and loans may be good, but we hope it does not slow the market too much.
As of now the balance between the growth of crowdfunding and the potential for government intervention and regulation are in balance. Most experts are not overly concerned. Yet it is unclear what the future will bring. Any number of things could happen that could tip the scales. Perhaps a large and well-known flop of a project that was funded by the crowd. Maybe an unfortunate situation where the crowd was duped by a project that was not as good as advertised could motivate the government into an increased role. And of course it could merely be that traditional sources of funding and loans could mount a challenge in order to slow their loss of customers. It’s truly hard to see which way all of this is going right now. We will stay updated and inform you of any developments or trends in the regulation of crowdfunding.
We welcome the input of any crowdfunding consultants who are out there and want to contribute. Thank you for visiting our website, and please let us know what you think. Our goal is to be a top crowdfunding coaching site, and our intention is to keep all of our crowdfunding consulting free.