Crowdfunding occurs when people collectively support a funding request from an individual or group.
Those requesting money create a campaign on one of many crowdfunding sites, with the most popular examples being Kickstarter and Indiegogo.
A typical crowdfunding campaign consists of a few distinct parts. A key aspect is the video. This is where successful campaigns connect with their supporters. Singers sing their best song. Video game developers show the game in action. Widget makers show the gadget meeting a need.
The best ones show the passion and, when appropriate, humor of the producers. This fosters a connection with the audience and increases both the probability of support and the chances of the campaign going viral, which is how the most successful campaigns have raised eight-figure sums.
Most campaigns also offer gifts which increase in significance the more someone gives to the campaign. Souvenirs, product samples, CD’s and unique experiences are popular items.