Social Media and Crowdfunding: The Chicken and Egg Phenomenon

Funny as it sounds, the truth of the matter is that crowdfunding and social media both came to prominence in the world in the same timeframe. This gives rise to many questions and testifies how both are relatively close to each other. However, are they close enough to be compared with the age old “Chicken and Egg” phenomenon? To know more about this connection, continue reading this article as it will explain this situation further (Read the article “Crowdfunding for Dummies” for more insight into crowdfunding and how it works)

Idea vs. Marketing

From the time it was in your mind as an idea, till the time it reached the crowdfunding community for investment sake, the link between an idea and the marketing is everlasting. Although in recent years, social media has emerged as one of the most profound ways to market your product. Essentially, social media, as the name suggests, had to improvise a lot for achieving the status of “Entrepreneur’s heartthrob”.

If you use social media, you must have noticed commercials and ads residing at the corners of your window. One wonders, what is so special about a usual online social community for the business and financial gurus? The answer is twofold but easily understandable. Social media provides two most important advantages that any business would love to have, these are:

• Exposure to a huge crowd

• Excellent platform for marketing your product without spending a dime

Investment vs. Skill

Another tricky question is which is more important and comes first, is it crowdfunding or the social media? If the mainstream trend is anything to go by to be believed, most business pundits state crowdfunding was up and running when social media websites were not even launched. Going by this logic, it is the crowdfunding that is the “egg”. On the other hand, the social media becomes the “chicken”. Still, the debate has too many tentacles for a final judgment.

Combine Chicken and Egg to Gain More Benefits

Regardless of the debate about which of the two came first, the bottom-line is to combine the two to get the maximum benefits from both. Essentially, crowdfunding is here to stay while social media may or may not stay forever. This requirement is what keeps the two from going along well. Crowdfunding concept is well on its way to become a major player in investment and financial market. The same cannot be said about social media. Essentially, in this case at least, the chicken may not survive with the egg.

Click to tweet: The Chicken and Egg Phenomenon. Encourage others to share and help us grow.