{"id":740,"date":"2017-08-16T08:19:32","date_gmt":"2017-08-16T08:19:32","guid":{"rendered":"https:\/\/blog.ethis.co\/?p=740"},"modified":"2022-11-15T08:35:16","modified_gmt":"2022-11-15T08:35:16","slug":"rewards-based-crowdfunding","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/rewards-based-crowdfunding\/","title":{"rendered":"What&#8217;s so special about rewards-based crowdfunding?"},"content":{"rendered":"<p>Here are the three main reasons why a company should use a &nbsp;rewards-based crowdfunding platform&nbsp;to finance its project:<\/p>\n<h2><strong>1-It validates your product!<\/strong><\/h2>\n<p>You have a product that you really love and that you&#8217;re sure that no one has ever thought of before. You&#8217;re convinced that it will sell well in the market and your friends and family tell you they love it.&nbsp;But you, your friends, and family&nbsp;aren&#8217;t the best source for an unbiased evaluation.<\/p>\n<p>Until you put it in the market, you can&#8217;t be too sure if it will sell or not. What you need is to find a sure-fire way of knowing the public&#8217;s reaction to your product before you start selling it.<\/p>\n<figure style=\"width: 460px\" class=\"wp-caption alignnone\"><img decoding=\"async\" src=\"https:\/\/images.airstory.co\/v1\/prod\/i15010485876d6fc816-4c76-408c-9f48-dd8313cef72d\/giphy%2B%25283%2529.gif\" alt=\"Reward based real estate crowdfunding\" width=\"460\" height=\"248\"><figcaption class=\"wp-caption-text\">Source: giphy.com<\/figcaption><\/figure>\n<p>That is where crowdfunding comes in. When your crowdfunding campaign is successful, it means that there is a genuine interest in your product.&nbsp;Think of it as offering your product at a discounted price; those who fund your crowdfunding campaign, are just pre-ordering your product.<\/p>\n<h2><strong>2-It offers real-time feedback<\/strong><\/h2>\n<p>Most crowdfunding campaigns now offer polls and surveys to let you know what people like best about your product and what they&#8217;d want to be changed. Not only does this allow you to shape your product according to your customers&#8217; desires it is also&nbsp;done in real-time, meaning no time lost!<\/p>\n<p>But the best part is that you make your crowd feel special.&nbsp;By listening to their suggestions and making them feel that their input is important, you made them feel part of a community.They will proudly tell their friends about the part they played in your product. Free marketing!<\/p>\n<p>You&#8217;ve created a loyal community for your product&nbsp;before you&#8217;ve even entered it in the market.<br>\n<!-- [if lte IE 8]>\n<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/v2-legacy.js\"><\/script>\n<![endif]--><br>\n<script charset=\"utf-8\" type=\"text\/javascript\" src=\"\/\/js.hsforms.net\/forms\/v2.js\"><\/script><br>\n<script><br \/>\n  hbspt.forms.create({<br \/>\n\tportalId: \"2627399\",<br \/>\n\tformId: \"bba04de7-5725-459c-a309-dc8abc86ab1a\"<br \/>\n});<br \/>\n<\/script><\/p>\n<h2><strong>3-It is an alternative source of funding<\/strong><\/h2>\n<p>Let&#8217;s be honest, not all products are going to get an initial enthusiastic response.<\/p>\n<p>For example, can you see a bank funding this product?<\/p>\n<figure id=\"attachment_1028\" aria-describedby=\"caption-attachment-1028\" style=\"width: 680px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-1028 size-full\" src=\"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2017\/08\/6f28055d6d03d894c548cd9ca85afa22_original.jpg\" alt=\"Alternative source of funding\" width=\"680\" height=\"453\" srcset=\"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2017\/08\/6f28055d6d03d894c548cd9ca85afa22_original.jpg 680w, https:\/\/ethis.co\/blog\/wp-content\/uploads\/2017\/08\/6f28055d6d03d894c548cd9ca85afa22_original-300x200.jpg 300w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><figcaption id=\"caption-attachment-1028\" class=\"wp-caption-text\">Source: kickstarter.com<\/figcaption><\/figure>\n<p>Probably not. And yet, through the Kickstarter crowdfunding platform, it got a funding of $195,094, way above its goal of $70,000!<\/p>\n<p>Sometimes&nbsp;it is the unlikeliest of products that get the highest success. Crowdfunding allows companies to get financing for their products that they normally wouldn&#8217;t be able to through conventional channels. Through crowdfunding campaigns, companies have access to thousands of potential investors. It also allows them to meet their niche customers more efficiently.<\/p>\n<p><strong>Overall,<\/strong> there are four types of crowdfunding: rewards-based crowdfunding, donation-based crowdfunding, equity crowdfunding, and lending or P-2-P crowdfunding. Here at <a href=\"https:\/\/ethis.co\/id\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ethis.co<\/a>, we offer <a href=\"https:\/\/ethis.co\/blog\/islamic-p2p-crowdfunding-explained\/\">P-2-P crowdfunding<\/a> in our social impact projects.<\/p>\n<p>Through our P-2-P crowdfunding campaigns, we have been able to collect <strong>funds of more than $4 million for projects worth $30 million<\/strong> from ordinary investors, in the past three years. Our projects are already making a positive contribution to&nbsp;the lives and welfare of people     <a style=\"border-bottom: inherit !important; color: inherit !important; box-shadow: inherit !important; text-decoration: none !important; font-weight: inherit !important; font-size: inherit !important;\" href=\"http:\/\/carreviewsandreleasedate.com\/why-taking-a-solo-trip-is-a-great-idea\/\">car reviews and release date<\/a>. We believe that crowdfunding campaigns will make a difference in social impact projects and in Islamic finance in general.<\/p>\n<p>It is estimated by the World Bank that<strong> by 2025 the global investment through crowdfunding will be $93 billion.<\/strong><\/p>\n<p>There are plenty of reasons why crowdfunding is growing in popularity every year.&nbsp;If you can think of any, please leave them in the comments section below. We always like to hear from you!<\/p>\n\n\n<p>Read more on <a href=\"https:\/\/ethis.co\/blog\/islamic-crowdfunding\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is Islamic Crowdfunding?<\/a><\/p>\n<div class=\"rns\" data-title=\"What&#8217;s so special about rewards-based crowdfunding?\" data-tags=\"Crowdfunding,rewards-based\" data-categories=\"Crowdfunding\" data-comments=\"0\" data-date=\"1502871572000\" data-author=\"Sarah Musazay\" data-single=\"\" data-url=\"https:\/\/ethis.co\/blog\/rewards-based-crowdfunding\/\"><\/div> <!-- Check out https:\/\/reactandshare.com -->","protected":false},"excerpt":{"rendered":"<p>Here are the three main reasons why a company should use a &nbsp;rewards-based crowdfunding platform&nbsp;to finance its project: 1-It validates your product! You have a &hellip; <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/ethis.co\/blog\/rewards-based-crowdfunding\/\">Read More &rsaquo;<\/a><\/span><\/p>\n","protected":false},"author":17,"featured_media":803,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":""},"categories":[7],"tags":[8,680],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/ethis.co\/blog\/wp-content\/uploads\/2017\/08\/josh-boot-177342.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbDwgm-bW","_links":{"self":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts\/740"}],"collection":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/comments?post=740"}],"version-history":[{"count":1,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts\/740\/revisions"}],"predecessor-version":[{"id":6643,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/posts\/740\/revisions\/6643"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/media\/803"}],"wp:attachment":[{"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/media?parent=740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/categories?post=740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ethis.co\/blog\/wp-json\/wp\/v2\/tags?post=740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}