Crowdfunding is an excellent way for athletes to connect with their target audience, raise funds for themselves or their group, get exposure to the outer world, and avail the opportunities that will help them grow and ultimately achieve their dreams.
Today many online and offline platforms have been established that offer crowdfunding services, but it can be tricky for athletes or sports clubs to decide which will help them in their pursuit of dreams in the most efficient way. In this article, we have listed seven points that athletes and sports organizations should consider to choose the right crowdfunding platform for their sports crowdfunding:
1. Distinct Crowdfunding Goals
Athletes must fix an end goal of their campaign before signing up on any platform. In addition, they should devise a well-planned strategy that they will follow throughout the campaign. Unfortunately, not all crowdfunding platforms may align with their goals and strategy, so it’s essential to research and select the ones that will work for them based on crowdfunding projects they have previously supported.
2. Motive of the Campaign
Crowdfunding is not just about setting goals, posting ads, and relying on strangers to help athletes meet their financial requirements. Once an athlete or sports organization has chosen a platform, they must present their campaign description. The description should be clear and explanative. They can also upload videos, photos, and links to support their ideas and visions. The majority of successful crowdsourcing campaigns abide by a well-planned strategy.
3. Structure of the Crowdfunding Platform
Crowdfunding can be broadly divided into three distinct models: the donation model, the equity/lending model, and the rewards model. If an athlete chooses to use the donation model, the donors and the supporters do not receive any commission for their contribution. This model is best for raising funds for a charity or a non-profit purpose. The equity or lending model offers either a portion of future revenue or shares of the sports organization to the donors. The rewards model promises to provide investors with various rewards for funding at different levels.
Athletes or sports organizations can choose which model will work best depending on their campaign type and visions.
4. Service Charges and Missed Targets
Many platforms charge a small fee from the users during the sign-up process. The fee structure varies from company to company, but this sign-up fee mostly ranges from 5%–15% of the total donations received from the campaign. However, sometimes platforms scam users by attaching hidden service fees, which they have to pay regardless of the success or failure of their campaign. Additional charges can be deducted from third parties, like credit card companies or Ecom companies, depending on the mode of payment used by the donors.
Athletes are advised to fix an end goal and do some research to check whether it’s possible to meet the end goal through their current fundraising strategies. Many platforms return the athlete’s funds to the donors if the campaign cannot meet its final goals. Each crowdfunding website has a page stating its terms and conditions where the athletes can find complete information about the fee structure and the work dynamics of the platform.
5. Supported Payment Methods
Most crowdfunding platforms support multiple payment methods to receive funds from donors and their users. The three most popular methods are authorization holds, credit cards, and capturing. Various platforms use authorization holds to ensure that the donor is eligible to make the payment. Their banks typically keep these transactions pending for about 30 days. Authorizing payment from a credit card, like Visa or Mastercard, is an attractive option for investors. However, a slight risk is involved as you cannot verify if the payment successfully went through. Organizations can also collect the whole sum of money at the time of donation and refund it if the campaign is unsuccessful.
6. Support System
Crowdfunding platforms that support users throughout the campaign and help meet their end goals successfully are favoured by most athletes and sports organizations. A few platforms offer integrated marketing strategies and crowdfunding plans that allow users to upscale their marketing plans. In addition, some platforms provide 24/7 helpline numbers or chat systems that enable users to avail information and resources efficiently. Athletes should choose a crowdfunding platform that supports their campaign and wants them to meet their end goals.
Individuals and organizations should be mindful of the restrictions and privacy policies of the platforms they have chosen or will choose. Some crowdfunding campaigns have rules that must be followed. It is advised to read the terms and conditions of each platform.
Crowdfunding has been a great way for non-profits and individuals to raise money for causes and purposes that are important to them. With the rise of crowdfunding and platforms like Ketto, more and more people are turning to crowdfunding to raise money for athletic endeavors like sports. If you are thinking about picking a sports crowdfunding website but aren’t sure if you should or where to begin, visit Ketto.