An overview of the mechanisms of action of crowdfunding to establish a uniform baseline of knowledge about what crowdfunding is, how it works, who the players are, and various terminologies we’ll use throughout the workshop.
Creator. A “creator” is someone who is trying to raise money for their passion project, startup company, or cause. You are a creator.
Project. Your “project” is the creation, company, or cause you’re trying to raise money for. It’s important to think of your project as finite, in that it has a defined start and end point.
Campaign. A “campaign” is your all encompassing, choreographed effort to raise money for your project through crowdfunding.
Backer. A “backer” is someone who invests or pledges money to your campaign in exchange for some kind of reward.
Reward. A “reward” is an incentive creators give to their backers when a pledge is made. For example, a musician launching a new album might offer a signed CD to a backer who pledges $25. The neatest thing about rewards is you don’t have to deliver them until after your project gets funded and is up and running.
Platform. A crowdfunding “platform” is one of the dozens of websites (ie. Kickstarter, Indiegogo, Fundable) that help connect creators with backers and facilitate the collection of funds via credit card.
Profile. Your “profile” is a webpage setup on a crowdfunding platform where you describe your campaign, upload a video, and accept pledges from backers.
Tribe. Your “tribe” consists of the people you know who are willing to go above and beyond to help make your campaign a success.
The Media. Members of “the media” include local journalists, bloggers, online publication contributors/writers, and national and international newspapers, magazines, television, and radio.