So what do you actually know about White Label Crowdfunding?
Believe it or not, it is probably the best crowdfunding model out there. It is critical for some businesses who use it frequently. Some of them, even use this method on a steady basis. Unfortunately, most business owners do not even know it exists.
When they do, most of the time they end up passing it over because they either doubt themselves or do not see how it can actually help their businesses. At other times they just don’t care. They don’t think it has anything to do with them, so who cares?
So what is the truth here?
What is White Label Crowdfunding and why should it be crucial for any business?
Let’s have a look at seven reasons why you should know more about White label Crowdfunding and how to use it for crowdfunding projects.
First, you can pre-sell your products or services even if your product doesn’t actually exist yet.
Fine, I understand your objection. There are other types of crowdfunding and this one does not apply to your business. And I agree, you have a very valid point.
…But take a look at it from this perspective, would you rather develop a product and then find out no one wants?
Or, have you thought about this?
You develop a product (or license it from someone else) and then test the market to see if anyone would be interested in buying. Therefore, when using White Label Crowdfunding as a strategy, you first learn whether there really is anyone that wants your product BEFORE you manufacture it!
Second, your manufacturing cash flow funding will come from your customers, not from bank loans. The reason for that is that you will have your minimum viable prototype ready to go by the time you begin your Crowdfunding campaign. 30 days later, you should be ready to deliver. Therefore, once your MVP is ready, you raise the funds to manufacture the final product and deliver it 30 days out.
Third, you will avoid getting into debt. As a matter of fact, your business can skip the bank loan lines and reach out to customers before the product is actually produced…
Fourth, you will not have to sell equity until the right time has come. Think about it, while there is a large, amount of capital available from VCs, angel investors and private equity folks, the amount of capital available for entrepreneurs when you count the customer market is much larger. And the audience is far more diverse.
Fifth, they are already your customers! White Label Crowdfunding customers have used your services and products, they already know you. There is a certain degree of trust that you will deliver on your promise. Most importantly, everyone knows it is much easier to sell to an existing customer than to a new one.
Sixth, it allows you for market testing before you spend a dollar of real money. It sure beats the old model of “if you build it, they might come.”
Seventh, you can get lots of feedback, before you start spending lots of money or funds developing a new product. White-Label Crowdfunding can be used as social crowdfunding so you can actually improve upon your idea, directly from customer feedback, in real time!
Wrapping Up White Label Crowdfunding:
After you have read all of the reasons and had an opportunity to evaluate them, it is up for you to determine whether or not there is a case for you to understand much more about White Label Crowdfunding. Just maintain an open mind and take into account the above reasons.