Crowdfunding is basically a way for people, businesses, or charities to raise small amounts of money from a large number of people. This practice is typically used in social media where people can freely talk to thousands of potential funders. Indonesian people are known for their shared culture: communal work. This is the reason why social crowdfunding platforms such as KitaBisa, Kolase, AyoPeduli, and SharingHappiness.org has become very useful in Indonesia, especially during this COVID-19 pandemic situation. Everyone wants to help those in need and these platforms has successfully made it hassle-free.
Social crowdfunding can also be used by both micro and macro businesses who need funding. Running business is not always as easy as it seems and having enough funds in the beginning is the key to success. This is where social crowdfunding steps in to help them get a startup capital with a low interest rate.
Another use of social crowdfunding is to help people raise funds for personal causes from their friends and family members. These personal causes may come in the form of medical or educational expenses, creative projects, or even for their own trips and adventures. This shows how versatile social crowdfunding is for everyone.
The must-have traits for an effective social crowdfunding platform
Social crowdfunding may not always work if it is not presented correctly through its platform or website. So, what kind of traits should a social crowdfunding platform have to successfully help people reach their goals?
- Good website performance
Improving website performance is one of the keys to reach potential funders. People tend to leave websites immediately when it takes too much of their time.
- Valid contents
Trusted, validated content is the heart of every crowdfunding projects. This helps build user trust and lower their hesitations before donating money.
It is very possible that funders might want to contact fundraisers regarding some details. User-friendly platform is needed so both sides can interact easily.
- Nice visual
Visually pleasing design which causes no confusion for user is important if fundraisers want people to really pay attention to what message or cause they want to share and why they need donation.
- Optimized SEO
As a result of so many crowdfunding projects existing throughout the internet, some may get lost and fail to reach their potential funders. Therefore, optimizing SEO can be a big help to make a platform discoverable.
The future use of social crowdfunding platforms for businesses
It is very likely that social crowdfunding platforms will grow even bigger as a business trend. Due to COVID-19 pandemic, a lot of businesses are forced to shut down because they fail to adapt. In times like these, businesses can use social crowdfunding platforms as:
- An idea delivery tool
People can share their big ideas in the hopes of turning thier dream into reality without having to worry about funds.
- A discussion media
On campaign periods, social crowdfunding platforms can help fundraisers get feedbacks from users so they can really optimize their business ideas.
- A marketing tool
Getting recognized by audience is one of the obstacles every business must face. Social crowdfunding platforms can be used as a media for free, effective, and spot-on campaign.
- An investor library
Social crowdfunding platforms can also be used by investors to find many interesting ideas and campaigns or for future collaborations.
To conclude it all, the trend of social crowdfunding platforms has increased rapidly because of the pandemic situation. This practice can be a great opportunity for people who are just starting their business or recovering from the impact of COVID-19 to reach their potential funders rather than having to ask a few people for large sums of money like the traditional way of seeking funds.
Author: Chandra Rolexta (Technical Manager)