Whether it is a small startup aiming to raise extra cash for a philanthropic event or a drama club looking to fund its annual show, crowdfunding has become the go-to source to roll in the excess dough.
Crowdfunding is the process of raising funds for a specific cause. For example, suppose you have an excellent business idea, cause, or project that mandates massive capital investment. In that case, you can share those ideas with the public and ask for funds using a crowdfunding platform.
Nowadays, there are many crowdfunding platforms, but GoFundMe stands out. In 2017, GoFundMe emerged as the most prominent crowdfunding platform. Since its inception in 2010 to 2020, the revenue raised by the forum has been more than USD 9 billion, and 120 million donors received the overall contribution. Thus, when it comes to crowdfunding platforms, GoFundMe is the gold standard.
The phenomenal potential and prowess of GoFundMe have motivated many other enterprises to create a crowdfunding site based on a similar business model. Various sectors, like agriculture, real estate, space or science, music, entertainment, etc, frequently choose to create crowdfunding platforms.
People are fast realizing the importance of customized crowdfunding platforms. They better serve the unique and meticulous needs of entrepreneurs and business owners. If you have considered creating your crowdfunding platform, the time has been better. Want to know more? Read ahead!
Why Start a Crowdfunding Business like GoFundMe?
There are reasons to start a crowdfunding platform. To begin with, crowdfunding contributes USD 65 billion to the global economy. Likewise, if a crowdfunding campaign raises 30 percent of its goal by the first week, it will likely succeed.
Finally, businesses and enterprises start 41.1% of crowdfunding initiatives. Moreover, the revenue models of crowdfunding platforms like GoFundMe are lucrative.
How to Start a Crowdfunding Platform?
- Choose the Business Model
The first in building a crowdfunding platform is choosing the business model. The model may vary from program to program, but it is the bedrock of extracting profit from your crowdfunding project.
The leading crowdfunding business models you can choose from are –
- Donation-based Crowdfunding
It is a business model when a fund is raised mainly for social or charitable reasons. Donors give money without expecting anything in return. Such crowdfunding is used by NGOs and individuals needing help with medical expenses and other similar causes.
- Reward-based Crowdfunding
Nowadays, backers, donors, or investors invest money in a project in return for specific rewards. This is known as pre-sales purchase. Reward-based crowdfunding platforms enable businesses to get support in the form of pre-sales and raise funds to launch a product or service in the market.
- Peer-to-peer Lending
It is the process in which an individual gets money from an investor or another individual (bank or financial institution) without any middlemen. In peer-to-peer crowdfunding, investors lend money for interest.
- Equity-based Crowdfunding
It is a crowdfunding business model that offers benefits to donors or investments. Such sites enable ordinary citizens to become part of commercial enterprises by allowing them to invest in the venture. Those who support the experience become part of it as owners of securities.
- Choose the Revenue Model
After deciding on the revenue model, you need to find a way to monetize these diverse crowdfunding campaigns on your platform. This is when you need to choose the revenue model for the platform. These include –
- Commission or Success Fee
Commision-based or success-based revenue models are top-rated. Here, you will receive a small percentage of the money raised. Sometimes, you will receive the commission only after a specific proportion of the set monetary goal has been achieved. For instance, Kickstarter takes a 5 percent commission from fundraisers for each purpose.
- Membership Fee
In this revenue model, you initiate a membership fee for individuals or enterprises who want to use your platform to run a campaign—for instance, Fundable charges USD 179 per month from subscribers.
- Paid Services, Features, and Promotions
The third way to generate revenue from the crowdfunding platform you have created is through paid features, services, and promotions. For instance, you can support a specific crowdfunding campaign on your platform, create a prototype, publish advertisements, establish branding, etc. In return, the fundraisers will pay for the support.
Similarly, if your platform can accumulate a healthy and generous number of subscribers, you can implement advertising or promotion-based revenue models.
Create Your Crowdfunding Clone App or Website
After the intangible elements are taken care of, it is time to delve into the tangible aspect of creating a crowdfunding platform. You need to build a credible website or forum for campaigns to blossom and people to donate. However, building an app from scratch requires a hefty investment. Likewise, creating a website is also no less expensive.
In such a context, clone scripts come to the rescue. You can take the assistance of a GoFundMe clone script to create a crowdfunding platform that has features similar to that of the original, which is GoFundMe.
The money you will be spending is less than a fraction of what comprehensive website or app development would require. Similarly, the app would be ready to launch in the market within a few weeks. Are you worried about quality? Don’t be; clone scripts are infused with advanced features like AI and ML integration, high-tech panels, impeccably seamless UI/UX designs, customizable interfaces, safe payment gateways, and more.
Branding and Customer Acquisition
After the GoFundMe clone script has been used to create an app, you must focus on your niche and the relevant marketing. Customer acquisition, trust building, etc., are essential to succeed as a crowdfunding platform.
Wrapping It Up
So, there we have it: a crisp overview of the impact of GoFundMe clone scripts.