How to Get Started with Crowdsourcing

Have a good business idea? But do you need funds/information to help it start up? Well, crowdsourcing and crowdfunding (fundraising) are both great places to start!

What is Crowdsourcing?

Crowdsourcing is when a group of people come together and share ideas, skills, and suggestions. These ideas/suggestions and skills can help you gain new employees and a better understanding of how your business’s final product affects people's daily lives and the flaw your business may have.

What is Crowdfunding (Fundraising)?

Crowdfunding is a type of crowdsourcing where you look to gain funds from people in the form of a loan or a donation.

Types of Crowdfunding:

• Charity**:**Organizations and individuals use these to raise money for noble causes.
• Equity Crowdfunding**:**Donors receive some equity in exchange for their contribution.
• Rewards**:**Donors receive a reward for donating/giving a certain amount.
• Loaning**:**Donators loan money to individuals/companies and receive their money back with an extra interest on it.

If you want to know more about crowdfunding and crowdsourcing, you should check out this article: “What is Crowdsourcing/Funding?”

When should you Crowdsource/fund?

If you have a great business idea and need the opinion and suggestions of the public, you could do crowdsourcing. If you want funds/money to start or maintain your business, or you need money for personal use, you can create a crowdfunding/donation campaign depending on your needs.

How to Get Started

Crowdsourcing:

The easiest way and most effective way to crowdsource is to use the Internet to create campaigns and surveys.

Here is a template that you can use to get started with Crowdsourcing:

1. Have a business or idea that you want to get others' opinions on.
2. Create an online or in-person campaign.
3. Explain/show the public what your business is or what your idea is.
4. Let the public completely understand what you are looking for. (Ex: Suggestions or employees).
5. Create a survey or poll and gain the opinions of individuals.
6. Use those opinions to fix any problems.
7. You might gain individuals who are interested in joining you if you advertised for employees (be prepared to take interviews).

Crowdfunding:

The idea of crowdfunding is almost all digital. So, the best way is to go with the flow and use the Internet to your advantage.

Here is a template that you can use to get started with Crowdfunding:

1. Have a strong reason why you need funds, either to start a business or for personal use (Ex: debts, bills, etc).
2. Create a website or use a public crowdfunding website.
3. Advertise your fundraising through social media.
4. Provide evidence if necessary. (Ex: If you need money to pay bills, show a photo of the bill during the fundraiser.)
5. Persuade the audience by using emotions if necessary.
6. Keep a certain time frame on how long your fundraising will go on.
7. If you are going to give up equity, decide how much you will give up for each donator depending on the amount of money they give.
8. If you are associated with a charitable organization, explain your cause.
9. If you are giving away rewards at certain donation milestones, decide what the rewards are and when they will be given.
10. If you are taking loans, be transparent and tell the donors when you will return the money and how much much interest you will add on for them.

Websites that can be used to Crowdsource or Crowdfund/Fundraise

• Patreon

• GoFundMe

• Kickstarter

• Fundable

• Crowd Supply

• Etc.

Conclusion

Crowdsourcing is a great way to go if you want more employees and/or suggestions/ideas to run your business more smoothly or shape your future ideas to fit the needs of your customers.

Crowdfunding is a great way to go if you need money for personal use or want to start a business.