As much as the term crowdfunding might sound complex, the entire concept behind it is quite simple and easy to understand. While some of us know crowdfunding and have used it in the past, here is a simple analogy for the uninitiated. Trust us, it doesn’t get easier than this.
Let’s go back to pre-school; remember the story of the thirsty crow?
Once upon a time, there was a crow. He was very thirsty. After having struggled for a while, he found a large pot with some water in it. But the water was too shallow, so he could not drink from it. Then he got a brilliant idea.
Little by little, he trotted around, picking each scattered pebble. He collected each pebble and put it inside the pot. After a while, the water finally came up to the surface. The thirsty crow drank his fill and happily flew away.
Now imagine the story a bit differently.
Imagine you are the crow, while your thirst is your need. You could be in need of anything – higher education, disaster relief, medical or health support, or even the means to move ahead with a creative idea that you have. The gap between your thirst (need) and water (what fulfils your need) are the funds that you are falling short of. Each pebble that you pick and drop in the pot is a donation from someone who wants to, and can support your cause. The pot that contains water is the fundraiser page that you can create on a crowdfunding platform.
While the crow in the story had to fly to each pebble, you can find your pebbles using modern day tools like social media, SMS, e-mails or calls. With crowdfunding, everyone who is online adds to the possibility of adding another pebble in the pot. Little by little, each pebble can bring the needed resource to the surface, bringing you closer to your goal. Once the pebbles are enough, you will be able to quench your thirst. Or in terms of crowdfunding, your fundraiser would have been successful.
We love demystifying crowdfunding, so if you have any questions, leave a comment or you can even tweet to us using #SchoolOfCrowdfunding.
If you want to give explaining crowdfunding a shot, go ahead and share your ideas in comments.