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Slava Rubin's 4 reasons for crowdfunding (besides the money)

posted Jun 7, 2014, 11:56 AM by Siamak Ebarhimi

Here are four reasons more powerful than money:

1-Market validation. A successful crowdfunding campaign is proof that a market exists for your product or service. That, in turn, can help you get funding from VCs, angels, even banks, because you've just removed some of the risk from the equation.crowdfunding marketing

2-Testing your marketing. If you're going to launch, you're going to have to sell, and a crowdfunding campaign is a cheap way for
you to exercise your marketing chops.crowdfunding advertising

3-Extra Promotion, interesting crowdfunding campaigns get written about, and sites like Indiegogo also go out of their way to
 promote campaigns, adding a multiplier to the marketing you try out.indiegogo marketing

4-Data capture. You cut out the middle man between yourself and your market when you crowdfund, and reap the reward not just in dollars,
but in access to information like your fans' contact information, giving you the opportunity to build a long-term relationship with the people
who fund you.kickstarter marketing

those reasons, along with the money, make a powerful case for crowdfunding. And that case is likely to get more powerful with time.

This will go down as the decade of crowdfunding.By the end of this decade, people won't talk about crowdfunding…it will just be layered into the fabric of funding.kickstarter project

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