Finance projects with Crowdfunding: All the benefits of collective financing system
The Crowdfunding, or on joint financing, is considered by many as a mere financing of a business idea system. In fact crowdfunding provides a number of advantages for the development of a certain product-service not found with other forms of funding.
# 1 – Measurement of demand
Since in the crowdfunding investors and consumers are almost always the same person, the recipient undertaking, the grant can understand what really likes the proposal to the public before its official launch in the market, considering the number of people willing to invest their own money to promote the idea: if it is appreciated by a large group of investors, means that the article in question has all the credentials to be popular with consumers.
# 2 – Public Involvement in the design process
Being the lenders of the first people interested in making sure that the subsidized product gets the favor of the public, are also willing to actively participate in its design process to make it more capable and usable: the primary advantage of this mechanism therefore consists in the fact that the prototype of a certain item is improved, strengthened and made perfect thanks to the valuable suggestions made by various investors.
# 3 – Obtaining feedback
Although, generally, to get the feedback and consumer opinions on a new product, you have to invest large sums of money in testing and various surveys, with crowdfunding these costs are fully cleared, because those who choose to finance projects directly involved (and free) to give its assessment as much as possible to maximize the usability and performance of the subsidized items: considerable savings that allows a manufacturer to allocate the money set aside to further development of their company.
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# 4 – Use of complaints for the improvement of the product
The collective funding is the ideal tool for understanding what a future article to launch in not properly functioning market : the assumption that (usually) each finished product is the result of a long series of expensive tests in which are found the different anomalies, with Crowdfunding the beta version of a certain good is tested and questioned directly by the donors, which support the manufacturer at no charge, asking all the complaints of the case and inspiring them to solve the problems encountered.
# 5 – Evaluation and promotion of the final product
The Crowdfunding is among other things also an important tool of evaluation and promotion of the final product : since the platform in which is contained this particular funding research system is open to a large number of investors, all members have the opportunity to meet , analyze and sponsor a certain item guaranteeing incredible visibility and making the content producer in the position of not having to shell out money for marketing activities.
# 6 – Audience Retention
If, as already mentioned in the previous point, with this kind of collective funding it is possible to promote and free to sponsor a certain product leveraging the visibility granted right from the Crowdfunding portal, in the next phase with the inclusion of Article in the platform and the fundraising, the manufacturer may also retain the site’s members who have shown an interest in its well, continuing to keep them updated on the progress achieved with the sale of the same.
These are the six great possibilities offered by Crowdfunding to those who choose to launch into the market of new products: a system to finance innovative projects at low cost and with considerable advantages.