What Is Crowdfunding

When someone comes across a situation where funds are needed, sometimes they are at a loss. Whether they have tapped out credit options or are unable to secure financing through any other option, they look to family and friends. More times than not though, people do not have that one person that has the spare cash to donate to their need.  Instead of finding that one person to donate, a crowdfunding campaign may be the best option. With this option, also called peer funding, a person can go online, describe their situation and ask people to donate any amount.

For instance, someone in need of funding, instead of finding one person who can loan $2500, they can effectively ask 100 people for $25. With this option, people can share their campaign online while encouraging other people to use social media to help spread the need. Facebook and Twitter have escalated this option because of the ease of sharing.

Once a campaign is started, the campaign owner simply needs to state their case as to why they need the funds, the amount of money they need, and hit the share button with the hopes of completing their goal. The overall goal is that their friends and friends of their friends will share the story to further the chances of raising the total amount of money needed.