2,527 crowdsourcing and crowdfunding sites
Editor's Note: The following comes to us from Ryan Wallis, founder and CEO of white label crowdfunding platform service Hybrid Funding. Wallis offers suggestions for entrepreneurs wishing to break into the crowdfudning space and explains the advantages of white label crowdfunding. Make sure to follow Hybrid Funding on Twitter @Hybrid_ltd.
There seems to be little doubt that crowdfunding is the way forward for the financial world. Yet one question presents itself – will the market be dominated by a few key players? In other words, will these now well-established crowdfunding platforms be so prolific that they snuff out any possibility of competition? Well… it depends on how you slice the pie.
These current leviathans of the crowdfunding community may each have a large slice of the proverbial “crowdfunding pie” and will always be battling for a larger and larger serving. If you have any hope of going head to head and getting a slice, you had better think again.
Not only are these big boys well established, but their target markets and demographics are so expansive that you would be crushed before you even got off the ground. But therein is their Achilles heel. These giants are the “one stop shops” of the crowdfunding community. Between them, virtually anyone and anything can be launched for funding.
This is where the crafty crowdfunding platform owners can make their fortune. Look for a niche market, take that slice of the pie and cut it down, and down, and down again. The more specific your niche, the less chance the big boys have of challenging you. Focus on one area and do it better than anyone else, anywhere. By doing this and offering a site of excellent quality and unique features, you will have a following. Remember: If you build it, they will fund!
As far as the big boys go, to them, your proverbial “slice” is nothing more than crumbs. Keep in mind, however, that this is a multi-billion dollar, global pie we’re talking about here. Those crumbs can make you full and, more importantly, rich. Consider the Remora fish, which attach themselves to the great shark. These fish gorge themselves silly with little notice or concern by the aggressive predator they cling to. The new era of niche crowdfunders could learn a thing or two from this humble little fish.
So, by now, I’m sure all you hungry entrepreneurs are just raring to go, confident that your niche and your approach will get you your slice! Any idea where to start? Sure you may have a million dollar idea but so do a lot of people. Getting it off the ground is the tricky bit! After spending some time shopping around, you’re going to have your choices boil down to two sad truths:
Sure, they may seem like cost- and time-effective solutions, but beware! There is a reason that they are so cheap and easy to come by. Once you part ways with your hard earned cash and have the “script,” the problems begin. The backend is usually non-existent or barely functional, the script is riddled with bugs, and if you’re hoping for some customer support or customization – keep dreaming! These clone teams are out only for a one-time payoff because they know there is no possibility of repeat business once they have your cash.
But weep not, you soon-to-be-champions of the crowdfunding universe, there is hope still! Enter the White Label provider. All the legwork of developing a platform and features with testing, retesting, and testing once again has been done for you. Just choose the crowdfunding model and unique features you like and they can be bolted together with your own custom designs and logo. Bingo! You’re on the way to having your very own, custom crowdfunding site catering to your niche market, fast, affordable, and hassle-free.
This new proliferation of high quality crowdfunding, equity and lending white label solutions means two things: a chance for the upcoming Remora fish crowdfunders to take their share of the pie, and a chance of long term starvation for the current crowdfunding sharks.