Do the homework before starting crowdfunding campaign

Working in advertising can be a tough thing to reconcile as one's life work because the very nature of it involves persuading others to say "yes" to a product, a service, a political candidate or something else they may not really need or benefit from.

I have a talented friend, now retired, from our former days in marketing. We both worked on the creative end of the industry, a fact that pushed us passed some of the less life-affirming, unctuous aspects of that business and drew us into a kind of humanistic approach to our work that we relished. Who doesn't want to think they contribute something meaningful to the world they live in both before and after retirement?

One of the positive endeavors my friend enjoys these days is online crowdfunding. Using platforms like GoFundMe, Kickstarter, Indiegogo, Crowdwise and Kavit not only provide a way for her to give something back to the universe, it encourages her to stay engaged in new technology and trend shifting, areas most every marketer, retired or not, is drawn to.

Crowdfunding allows any interested person online to pool their money (usually in small amounts) to fund small businesses, charitable causes, arts projects, new products, educational movements, personal causes and the like. In most cases these are charitable donations, not investments where you expect a return. College students have set up crowdfunding accounts to receive tuition assistance. Fledgling writers have set up campaigns to self-publish a novel. The fellow who came up with the 3-D digital printing process, crowdfunded his idea. If your project or need resonates with enough funders, raising money can be painless.

Although crowdfunding platforms are getting better at vetting the exploiters of the system, contributors need to follow due diligence and check out the project for themselves before investing.

If you are seeking funds online through crowdfunding, you must decide up front how much money you are asking for and over what length of time you will extend your campaign. Be scrupulously detailed and transparent about the why, how much and when.

In some cases, once a campaign is finished, it can't be extended, and if the total amount of money you have asked for isn't raised, you get nothing. Some platforms require you to pay a commission if your goals are met. Some will assist you with promoting your project online, some are geared to accommodate nonprofit organizations, or game development, or music, or small entrepreneurs.

Read the small print for such things as hidden fees that could be added to your donors' contributions. Each crowdfunding platform has its own criteria, so do your homework before launching your campaign.

Paige Henson is a local writer and a new media consultant for businesses and non-profits. Her email address is paigechenson@gmail.com.

This story was originally published February 9, 2016 at 12:11 PM with the headline "Do the homework before starting crowdfunding campaign ."