What is crowdfunding, what sort of projects can you get crowdfunding for?

Crowdfunding is a way to raise money for a particular project from a large group of people, usually via the Internet. In crowdfunding there is the artist, inventor or entrepreneur who has the idea for the project and who needs money to bring the project to life. Then, there is the crowd or the backers - the group of individuals who support the project and pledge money to it. In between these two is the organisation that makes it possible for the creator to find backers. These are usually online services. What sort of projects can you get crowdfunding for? Any type. It could be to make an album, a book, a film, a video game, a new piece of technology. Basically, if you have an idea that's new and original and that excites people, you're sure to find people to pledge money and back the project. Do you need a lot of money to be a backer? Anybody can be a backer. Usually you can pledge as little as $10 to back a project. With crowdfunding the idea is to get as many people behind the project as possible. The basic principle of crowdfunding is that if thousands of individuals offer even just a small amount of money, that can often be enough to get a project off the ground. What are the advantages of crowdfunding for the artist or creator of the project? Imagine that you're in a band and you want to make an album. The usual way to do that is to find a record company to help you to record your songs. If you find one and they offer you a contract, you'll probably have to record your songs according to the instructions or guidance of the record company. With crowdfunding, your band can show the type of songs that they want to record. If people like them, they offer money and your band is free to make the album the way you, and your fans, want. So there is a more direct relationship between artist and fans. What are the advantages of crowdfunding for the backer? Backers are usually offered special 'rewards' for supporting a project. By pledging the same amount of money as for a normal download, the band might offer you different rewards. For example, maybe you get exclusive videos from the studio showing the band recording the new songs. Or maybe you get a free T-shirt, or even a copy of the lyrics of one of the songs, written by hand by the artist. The backer can feel as if they are part of the new project, knowing that if you hadn't given money, maybe the album would never have existed. How succesful is crowdfunding? In 2013, the crowdfunding industry grew to over $5. 1 billion worldwide. And if early data is any indication, it's just getting started and should present major growth in the years to come. What can you do if you have an idea for a project? Your project can be big or small, but you need to decide what exactly you are aiming to do, how you are going to do it, and how much money and time you need. One of the best ways to attract people to back your project is by making a video where you explain your project and where you give details of the rewards that backers can get, according to how much money they pledge.