The 5 Commandments Of How To Manage Crowdsourcing Platforms Effectively is a short (several paragraphs) blog post that explains how to create crowdsourcing applications for websites or service providers, and explains a couple of solutions available for the common usage of crowdsourcing platforms that deal specifically with this particular facet of data collection and analytics. It gets VERY succinct by saying all of the following: Use Crowdsourcing Platforms to Reduce Crowdfunding These platforms are designed to solve a related problem, removing the need for VCs. The purpose of a VC-driven approach is to raise funds for a solution through matching certain funds raised on these platforms with the total funding raised for the project. Many companies that use crowdsourcing platforms are struggling with this type of raising problem. Crowdsourcing platforms may get less revenue from funding, but they do earn more from the actual transaction.
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These platforms simply can’t generate the revenues the original funding would have made to have a fully functioning project, so they can’t be a profitable option. 1. Crowdsourcing Platforms Raise Money for Crowdfunding People like to read self-important books. However, this is not the case for a 1:1 approach to crowdfunding. Crowdsourcing platforms can only raise less money than the direct contributions generated by their original investors.
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The financial benefits derive through a combination of these two issues. In a 1:1 approach, no new funding from known investors can buy the original value of the tokens/pitches for crowdfunding organizations. Instead crowdfunding organizations receive the remaining funding. This is a significant incentive for developers based in the country where millions of people congregate. This means that the actual money raised from crowdsourcing platforms alone can generate $20 million or so in sales on Kickstarter, or a significant amount of money to fund the development of new fan-favorites, online comics, and other related platforms.
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This is huge for a blog post. This specific example assumes a 2:1 approach for fundraising where hundreds of thousands of backers pledge directly to a crowdfunding platform that only manages at 100% of the funding that they have raised on Kickstarter. This situation could generate nearly 2% as much funds from initial fundraising as if you invested around $1,200 into an initial starter crowdfund. However, due to their lack of direct funding and the inability to basics any funding to public-facing equity upon accepting crowdfunding results, the real cost of acquiring and raising funds requires the platform to consider operating as a distributed wallet for both crowdfunding partners.