Income Streams and Crowdfunding

Monday 7th November

Crowdfunding: funding from a wide variety of public sources using social media promotion

Different types of crowdfunding:

Donation model: People can donate money, in small increments, to a project which they believe has moral and ethical value that is good for the community. e.g. Go fund me

Pre-Order Model: People make online pledges during a campaign or pre buy the product for later delivery. e.g. Kickstarter. 

Reward-Based Model: where investigators get the satisfaction of helping and immediately receives a pre-determined reward or item of value. e.g. IndieGoGo.

Equity Model: Large numbers of "regular" people to investing small amounts funding early start-ups. With the expectation to receive dividends or investment appreciation. 

What is crowdfunding?

-Crowdfunding is a way to raise money for a company's upcoming project. The company is then able to collect money online from a large number of people.

What are the benefits to a company?

-The benefits are that the company is able to get money and are able to promote the media project at the same time.

What are the benefits for people who contribute?

-Rewards investments and extras like visiting the movie set.