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How Do Crowdfunding Platform Makes Money

Crowdfunding in India is becoming a popular option for individuals looking to meet their urgent medical expenses. So, crowdfunding is the practice of funding a social cause, project or venture by raising monetary contributions from a large number of people, typically via the Internet. When you run out of ideas or options to be able to raise money for your cause, there is a platform that can help you meet the amount you need for your cause or idea. This platform is called crowdfunding.

Unlike bank loans or insurance policies, where the process is long and complicated. Almost adding more stress to your current situation and still leaving you with a list of terms and conditions to deal with. If your nation has a list of certified platforms, you need not worry about raising money for your cause. By now you must wonder how crowdfunding platforms make money? Yes, they are a social enterprise, so they do earn a share as their income; however, this varies with the platform you choose.

The great news about crowdfunding is that you don’t have to pay up any fees or any price to start a fundraiser in India. These crowdfunding platforms levy fees to maintain and upgrade our platform to suit your fundraising needs, add innovations that can maximize giving and build a team that can drive you towards your goal! Most crowdfunding platforms offer different plans with respect to showing support to your cause. Now signing up with a crowdfunding platform will not just mean you have raised money for the cause you are representing. This is a big misconception people have everywhere around the world.

For the cause you represent and the goal amount you set, a dedicated time would be asked from you which will stand as the campaign duration. Now drawing attention to your campaign or keeping your campaign functioning is what will drive money or funds to your campaign. As you monetize your campaign, will you be able to fund your cause quicker?

There are three major plans that a crowdfunding site in India will offer you. They are as follows:

1_ Self driven campaign:

This plan is opted by a person who is already experienced to crowdfunding or knows or has planned their fundraiser campaign. The platform would ideally charge around 5% of the funds you have managed to raise apart from the payment gateway fees.

2_ A collaboration:

Here, the crowdfunding platform advises you to take up their strategy if you are fairly new to crowdfunding and have less time to execute your campaign. For a very serious business proposal or a startup, going for this strategy is advised. The platform usually charges around 8% of the fees and strategizes the whole campaign for you. And all you have to do is execute the plan put together by the platform.

3_ Accelerate:

This pricing plan taken by the crowdfunding platform is where they help you plan, execute and also raise money for your cause. The expertise of the crowdfunding platform almost ensures your campaign is successful in this plan. Around 12% is the usual fee for this plan. The crowdfunding cannot assure you that the money would be raised however; they do advertisements, uplift your story and empower it until there is the desired response generated. This is advised for people with a serious cause such as a health problem or an urgent surgery in the hospital.

Most people who have started medical crowdfunding campaigns in India have and are succeeding. Credit goes to the easy to understand technology and the crowdfunding sites in India being an option that actually works. While families get exhausted with the trouble their loved ones experience during the ailment. Getting through the spell of painful surgeries, organizing the medicines expenses and postoperative care itself requires lakhs of rupees as the primary fees at hospitals.

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