Secrets That How Crowd-Funding Is Changing Online Business

There's that urban myth of a programmer who wrote an application for a bank, where for every single transaction done, a deposit of just one cent, I do believe it absolutely was US cents, into their own account. Eventually he'd millions but unfortunately for him he was caught and imprisoned. I'm not sure if the story is true or not but the idea of the story is that he used minimal amounts on a sizable scale to create millions really small amount of time period.

Last week, through random surf around on the Internet, I came across that there is an increasing online trend, the concept of crowd-funding. Perhaps it's not this type of new concept as politicians have now been carrying it out for decades to improve funds, even charities or entrepreneurs do it. However what's new, at the least for me personally, is so it derives from crowd-sourcing or user generated content, which involves allowing work, or in cases like this investing, to be outsourced to the masses or particular groups of an individual therefore making crowd-funding one part social network and one part capital accumulation or fund raising. What makes this much more interesting is that it's used as a business model.

Essentially the model includes many 소액결제 현금화 , done via supporters, or as some entities call them micro-investors, who all donate or invest a small amount into a concept or product that'll eventually, pay off if enough people provide the determined amount.

If the determined amount is not reached there's no payoff to anyone that may ensure it is a bit of a gamble. Should the quantity be reached all the investors are rewarded in certain manner, either in a cut of the sum total future sales or supplied with goods or services exceeding their initial 소액결제 현금화 . Crowd-funding entities seek to harness the enthusiasm as well as the cash of strangers, usually from the Internet, by promising them a cut of the returns (the incentive) which, in my opinion, resembles concepts found in gambling the place where a higher risk equals an increased payoff usually. 

Although this concept is not particularly new it only appears to be appearing around the net now and is beginning to become quite mainstream and socially acceptable. This business model is apparently growing and soon we will see far more businesses adopting this model, especially due three main factors:

  1. The World Wide Web has changed into a global phenomenon connecting more and more people on a daily basis; the right medium for communication over the globe.
  2. Increasing trust and convenience of moving services online. Like people are less focused on entering their bank cards online or people prefer to check on their accounts online, etc...
  3. Global recession; Because of the financial recession of 2008 it's more likely to be a more cautious behaviour towards to new investments or payments. This could contradict my previous factor however it doesn't necessarily because it could encourage individuals to diversify their investments across many portfolios which lends itself well to crowd-funding.

In conclusion, crowd-funding might still maintain its enfant stage, it's set to grow especially because it is a less complicated and potentially faster method for raising awareness or money. I don't expect it to become global phenomenon overnight because it is not well suited for every business or initiative; however it will slowly become more and more widespread, especially with more tech-savvy users.

Currently it's primarily based on fund raising but it could evolve to incorporate more than monetary gain, such as for example opinions or exchanges for other services. Which the case, it is definitely dedicated to the commercial usage of communities where every individual can be a participant and part owner of ideas, goods or services.