Crowdfunding Should Not Be About Being In A Herd Mentality

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One of the unique characteristics of crowdfunding is its ability to tap into the vast and wide financial resources of the crowd. It connects you with your target market even before you launch your product into the market. You solicit their support and backing to get the business up and running with financial support that serves as your initial capital for the business.

For project initiators who are able to reach their goal, it is a good sign that investors are not only putting their money into the campaign. This is also a show of support and a validation of their hardwork because people are believing in them to the point that they are willing to fund their ideas. It always feels good when other people rally behind you for the things that matter to you.

For investors, it is important to discern the campaigns that are being presented and to make sure that their support is not because they are simply swayed by the crowd. It is one thing to put in money to an idea that you believe in but it is another to blindly support a project for the sole reason of being with the crowd. You do things only because other people are doing them.

Crowdfunding and crowd mentality

Here are a few things investors can look at to discern if they are being lead into a project because of herd mentality and what they need to do to make decisions that matter.

  • Stop being on autopilot. You need to be more active and aggressive with the things happening in your life. Being on autopilot simply means that you are more willing to simply compromise just to get things done. You need to have a stand and be more mindful of the decisions you make because everything you do today can affect you in the future. 
  • Research to form your own opinion. One crowdfunding campaign might look promising because a lot of people are rallying behind it. Although this is always a good sign, you still need to form your own opinion based on your character, beliefs and proper research to get the facts. If you believe that the project is worth funding based on your research then go ahead and rally behind the campaign. But you better think twice about investing in a project when your only basis is the amount of people that are supporting the idea. 
  • You can take your time when making decisions. You should never feel rushed when making a financial decision and if you are being asked to make one under duress then you should know something is up. You need time to take in, understand and process the whole situation before you make a commitment. That being said, you should also know that the opposite could also hurt your chances. If you take too long to make a decision then you stand to lose on the opportunity right in front of you. 
  • Be comfortable with being different. There are people who prefer to be guided with the herd mentality simply because they just want to belong, blend in and not call attention to themselves. But this way of thinking can get you into trouble because you do not get to cultivate whatever talents and skills you have. You need to be brave and courageous enough to make your own path and not just follow others.

 

This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

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