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PERSONAL FINANCE
Money in the digital age
FEES
Fees for crowdfunding platforms vary, but
are typically around five per cent excluding
any design charges or fees for payment
processing. Some platforms offer an “all or
nothing” structure, where the funds donated
are returned to donors if the money raised
falls short of the stated target.
Launching online
Digital marketing techniques help
to target those most likely to
contribute. Reward schemes
offering pledgers a return
on investment can
help to maximize
donations.
Online pledges
Most donations are made in the
early part of a launch, but it
is important to keep the
campaign “live” with
reminders, updates,
and new posts.
Follow-up
When the campaign closes,
the funds go to the host or
are returned to the donors,
depending on the agreement.
The host might then prepare
donors for the next
venture.
US$2.6 billion
plus - the amount pledged on
Kickstarter since its launch in
April 2009
£
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