When the topic of crowdfunding comes up, it is almost always about money. How much is the target amount, how many has been raised from investors, or even how much the return would be for backers. The success, as well as failure of each campaign, is commonly measured in terms of dollar amounts next to the project.
When a campaign reaches or goes over their target amount within the specified time frame, the project is deemed completed and successful. When they are unable to rally up enough backers for the project, project initiators need to go back to the drawing board and those that put their money would eventually get it back.
In all these, the metrics in performance and success of a particular campaign has always revolved around money. However, there are a few important aspects of the platform that is not measured by the dollar sign. In crowdfunding, there are a few non-financial aspects in the industry which play a crucial role in the success of each project.
Non-financial aspects of crowdfunding
Here are some of the non-monetary components of social funding campaign. It is a good idea to look into these and understand how they play a vital role in the industry.
- Trust. This is one of the most important currencies in crowdfunding where dollar signs do not matter. The basic tenet of the platform revolves around the idea of being able to trust people. For project initiators, they need to trust the crowdfunding platform itself as well as the investors in before they can open up their ideas to the world. For the investors, they also need to give a certain level of trust to opportunity providers as well as the platform. This is both to process the funds as well as being used as promised. On the other hand, crowdfunding companies also need to trust the project initiators to follow through with their projects to fulfill their commitments with investors. There is a lot of trust that goes around the industry.
- Empathy. One of the best things to ever come out of crowdfunding is the donation-based platform where people help other people without expecting anything in return. It can be a plea for financial help due to medical needs or even right after a natural disaster hits a specific area. There are even people putting up projects for other people they believe needs financial assistance. In all these, empathy plays a pivotal role in helping investors understand the plight of other people enough to make them donate to the campaign.
- Generosity. As soon as investors start to consider supporting a specific crowdfunding campaign, the amount they put in is oftentimes dictated on their level of generosity especially for donation-based projects. More than knowing what their budget is, their generosity usually allows them to give more than what they can to help those on the other end of the platform. It might not play that big of a role when it comes to rewards or equity-based projects but nevertheless, the bottom line is that the more generous an investor is, the bigger the chances that a campaign will get a huge amount.
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]