Crowdfunding is an easy way to raise money for a cause or a project. Even you can use it for yourself if you need the money for a personal cause. By promoting it correctly, you can reach thousands and even millions of people. And these people will be willing to lend you a hand and help you with reaching your dream. So, whether you’re a young entrepreneur or a very talented and ambitious producer, crowdfunding is an option for you. You have to make sure though – that you’ve done a thorough crowdfunding comparison on all the crowdfunding platforms. 

There are a number of crowdfunding sites going around in the internet. And it’s understandable you can’t help but wonder which one would be the best for you. This crowdfunding comparison will tackle this question for you and help you with choosing the the right platform. The last thing you need is not knowing what you’re getting yourself into.

Crowdfunding Comparison Types

Before you jump into the crowdfunding wagon, it’s always better to know what you’re getting yourself into. A good crowdfunding comparison is always better to do when you know the types of crowdfunding, so you could compare them easier. 

Reward Crowdfunding

You might be wondering what happens with this kind of crowdfunding. It is quite simple – the investor or donor backer who funds your project, will benefit through a non-financial way. You can use this kind of crowdfunding for creative projects. The reward would depend on how much the investor/donor gave. The bigger the investment or donation, the bigger the reward that’s offered. 

So, if you’re on the creative side of things and you’re thinking of producing something, then this might be the kind of crowdfunding you should look up and go do. 

Equity Crowdfunding

If you’re thinking about a business that has a high chance of growing and thriving into a bigger one, then this is the crowdfunding category that’s fitting for you. With equity crowdfunding, the funder invests his money in return for shares which means that he’ll have a small part in the business or project that you’re doing which is why this is the kind of crowdfunding that would work best if you’re venturing on a business that has the potential to become a bigger one. 

Debt Crowdfunding

This type of crowdfunding is kind of the same as loaning money from the bank to help you start up your business but the beauty in this one is that you can loan a lower amount than the one that a bank would present to you. This option also offers you a higher chance of attracting someone to back up your project because they would get a financial interest on the investment that they made.

Donation Crowdfunding

The name already speaks for itself. This is usually the crowdfunding type that charities and organizations used when they want to fundraise for an event or social gathering. Most charities have their own website where you could go onto and donate directly but there are still some who would use the crowdfunding technique, especially those who want to host a smaller charity or those people who need the donations for personal or specific causes. 

Fees, Crowdfunding Comparison

Another thing that you need to understand with crowdfunding, too, is that they have these two things called the platform fee and the payment processing fee. These are the two fees that will be charged to the campaign creators if they start to receive their funds. The fees are also an important way for crowdfunding comparison because every fee differs from each site. 

Platform Fee

The creator will have to pay the platform fee when they start to collect the donations that have been made to them. It’s also the percentage of how much total fund was raised. This is the fee that the site charges; it’s the way the crowdfunding website makes their money. The website uses this money to make their site look better and improve their support team and etc. Crowdfunding websites also differ with their platform fees and it’s usually around 4-5%.

Payment Processing Fee

Aside from the platform fee that the creators have to pay, there’s also the payment processing fee that they have to pay which is the fee that’s for the payment processor.  The payment processor is the one responsible for accepting the donations made online and it verifies the payment method being used and is the one that also transfers the fund from the donor’s to yours. 

The fees will vary depending on what the payment processor the crowdfunding site is using. 

For crowdfunding comparison between the number of sites that the internet offers, having to consider the fees that you’re going to deal with is important. You don’t want a site that would take too much of the donated money you’ve accumulated.  

Crowdfunding Comparison Conclusion

A crowdfunding comparison is a great way to make sure that you’re not hitting up the wrong site. You’ll have an idea of what you’re doing. And you know what’s happening- the fees- and you know which site you’re supposed to go to or use. Hell, the last thing you need is to just randomly create on one sight that’s not meant for personal use; considering that there are actually sites who cater for organizations and ones meant for artists like you. You do not want that kind of slip up to happen to you. 

So, if you have finished tackling a crowdfunding comparison, you’re now free to head to a site- basing on all of the comparing knowledge that we’ve given you- and joining in on one. But might I suggest a crowdfunding site that would be of help for you?

Among the number of crowdfunding platforms, you could use, why not try CrowdfundingBum?  This site places the power of reaching thousands of people around the globe to help you raise your funds to use as capital for your business or for the social event you’re spearheading for charity – all without any platform fee. Whether if it’s for yourself of if you’re helping out an organization, CrowdfundingBum will be your helping hand to success.  

Final thoughts.

We hope you stick around a while to find out more about all that Crowdfunding Bum has to offer. You will find ample reasons to choose us as your funding source.

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