Crowdfunding platforms are booming now that the concept of crowdfunding is becoming increasingly popular. A lot of businesses and entrepreneurs are trying to bite a chunk out of this profit pie, and we can’t really blame them. If you’re planning on creating a sustainable crowdfunding business, now’s probably the best time for you.
“How to start a crowdfunding site?” is one of the most commonly asked questions by people who’re willing to start a crowdfunding business. In this article, we’ve decided to discuss this in detail. Read this till the end if you want to learn about building crowdfunding websites.
Deciding on the Type
If you’re willing to start a crowdfunding website, then we can safely assume that you know how crowdfunding works. However, we’ll still share the idea in brief for better understanding.
Crowdfunding platforms are essentially a two-sided marketplace. There are fundraisers or creators on one side, and there are donors or investors on the other side. As a lot of money is processed through these platforms, it’s not possible to build a fully working crowdfunding website through some blocks of HTML, and we’ll get into that later.
Before you even question how to build a crowdfunding website, it’s important that you decide what type of crowdfunding platform is the right type for you. There are mainly four types of crowdfunding websites. Let’s take a look at these types in brief.
The donation-based crowdfunding platforms are most commonly found. These are famous because, on such platforms, the donor doesn’t receive anything in return for their donations. This system makes these platforms most suitable for fundraisers.
Then, we have equity-based fundraising platforms. On such platforms, companies can become fundraisers mostly. How this function is, the investors will receive an equity interest or equity share for their investment.
There are reward-based crowdfunding platforms as well. In such platforms, the donors are given rewards for their donations. Such crowdfunding platforms are perfect for innovators and software developers, as they can raise sufficient funds through these, and can reward the donators with their final product once they’re done developing them.
Finally, there are debt-based crowdfunding websites. These are famous among all types of businesses because of their flexibility and unique value proposition. In this system, the fundraisers are required to return the money after a specific time. This allows the fundraisers to raise the amount they want, and it also doesn’t cause the donators any loss in the longer term.
Key Features to Ensure
A crowdfunding website is pretty different than the generic websites we come across on daily basis. There are certain features that every crowdfunding website must contain. In this section, we’ll discuss all the features that you must incorporate into the platform you’re creating. Doing so will definitely provide the best results.
You have to include multiple sections in a fundraising website as it’s a two-sided marketplace. Let’s take a look at how you can decorate each section.
If the section of the donators isn’t user-friendly, they won’t feel compelled to browse through the options at hand, and it’ll also reduce the number of donations made by them. This is why the first thing you need to ensure is that the donator’s section should be optimized for each user. The search option should be optimized so that the donator can find businesses that interest him easily, and there should also be a discovery section where he will get suggestions of businesses.
There should be a thumbnail of every business from where the investor will get some of the most required information such as fundraising, name of business, the purpose of the project, etc. so that the investor can get a general idea of the business without clicking on it. There should be multiple investment options as well.
To facilitate the payment procedure, there should be multiple payment options so that the investor can donate money smoothly. Offering multiple payment options will only increase the chances of raising more funds.
Finally, there should be a dashboard as a home screen. This page will provide information that’ll help the donator keep track of the projects he has invested in.
The fundraiser’s section will be comparatively more complicated than the donator’s section, as it’ll have more resources. There must be a campaign creator section that’ll allow the fundraisers to create a campaign of their choice.
It’s necessary to provide flexibility and customizability as these will help the fundraisers personalize their campaigns. There should be a profile management section that’ll help a fundraiser store all the details regarding the campaign, the company, and payment. It’s necessary to facilitate sharing the links on social media as it’ll boost their reach and increase the chances of raising more funds.
Finally, there should be multiple payment methods and a dashboard where the fundraisers will find all the necessary details.
Selecting the Right CMS
As we’ve stated earlier, a crowdfunding website is more than just a heap of HTML scripts. To make your crowdfunding platform work, you’ll need to create a website that people can trust. The website must look professional and should be easy to use, but it should also be secure. Also, each crowdfunding website should contain various front-end and back-end modules to function properly.
There are various solutions such as WordPress, ROR, and PHP that can establish a successful crowdfunding platform. While the free solutions can get the primary job done, we recommend the paid ones for the versatility they offer.
We always tell people who ask us how to start a crowdfunding platform that it’s not a piece of cake. However, it’s also true that now’s the best time if you want to profit from a crowdfunding business. Hopefully, the information shared in this article will help you make the right choice when creating a crowdfunding website of your own.