Most of us have heard about the crowdfunding platforms. For those who lack the idea about the functioning of a crowdfunding app like PledgeBox, here is a simple workflow of the application.
- Entrepreneurs can sign up and provide a detailed overview of their projects with videos and portfolios for prospective investors to get better insights of their project.
- There are several models on which crowdfunding platforms operate on. The popular model includes reward based, donation based, donation based and equity based crowdfunding models. Let us have a brief look at each of the model:
Reward based model: Customers can contribute a small amount to projects in return for some kind of reward. For instance, a thank you card can be given as gratitude with the app’s signature for the amount contributed.
Equity based model: As a return for contributing to the project, the crowdfunder gets economic returns by getting ownership stakes. The percentage of ownership depends on the money contributed and project agreement terms.
Donation based model: It is a classical donation based model where crowdfunder gets the satisfaction of contributing to a good cause.
- The crowdfunding campaign becomes valid only after the target amount is achieved.
- The app like PledgeBox gets a percent of this campaign amount as commission fee. For example, the popular crowdfunding platform, Kickstarter gets 5% of every successful campaign fee.
Application owners can set the margin that they will get as commission from each campaign. It is one of the fundamental income for business owners. Besides, there are also other revenue modes such as revenue from advertisements, subscriptions fee, etc. With most of the business shifting to online the prospects for crowdfunding platforms are bright. Compared to last year, the business growth is more than 33.7% for crowdfunding platforms. The revenue generated in NorthAmerica alone is $17.2 billion. Entrepreneurs can invest in the Appdupe’s high-end crowdfunding upsell software and make their future in the business sector prosperous.