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3 Types Of Crowdfunding To Make You Richer

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Crowdfunding is way bigger than just raising money for your business

“Dreams don’t work unless you do.” –John Maxwell.  If you are starting a business you need to know how crowdfunding works to make your dream a reality.  Kickstarter and other reward crowdfunding sites take a certain % of money raised as commissions and another % to allocate to credit card frees.  On the other side if you want to make some money you can join Lending Club for debt crowdfunding or if you meet JOBS Act requirements join SeedInvest for equity crowdfunding.

Learn how to make money or raise money from 3 types of crowdfunding.

Debt-based crowdfunding is asking a crowd or group of peers to lend you money for your wedding, help you pay off debt, fund a new business, or help expand your business project. In return, you promise to pay them an agreed-upon interest rate in exchange for the money.

If you have an extra $10,000 lying around to meet JOBS Act requirements for equity crowdfunding you can invest in someone else’s great idea for an equity share.  If you don’t quite have that amount you can become the bank through debt crowdfunding sites like LendingClub where someone pays you interest on your money.

See how the different types of crowdfunding can make you money.

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About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.

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