Crowdfunding and Crowdsourcing looks like two similar words, they both spell start with “Crowd”, so in some extent there are same, it a platform for demander and contributor to fulfill their requirement or get their bones. The different between these two things is the demander’s need, what requirement of the demander of crowdfunding is? It’s funding. And the demander of crowdsourcing need ideas and design product. In my view, there both have pros and cons. I am going to explain to you below.
The pros of Crowdfunding:
1. Collect funding
If you have new idea, you don’t need to get loan from bank, you can start from a crowdfungding platform.
Some sites just charge a little fee from your project. For example, Razoo charges fee is 2.9%, Indiegogo is 4%.
3. Test idea
There are many contributors, but if your idea did not attract them, or they don’t agree that is a great idea, they will not support you. So that is a good way to verify your idea good or not.
The cons of Crowdfunding
1. Time limit
Maybe your idea is good and it could be reached more funding, but the time that the platform provided you are not enough.
2. Miss the reach goal
In many times, there are just 30% or 40% of a project. So the demander did not meet their goal.
3. Higher charge fee of unsuccessful project
For example, if you fail your project, the charge will be more than 9 % in Indiegogo.
The pros of Crowdsourcing
1. Multiple choice
As a presenter, you have the right to choose the best one from all projects.
The bonus that you provide is fixed, it won’t be change or higher in the end.
3. Closer relationship
Through cooperating, get a closer relationship between organization, builder and clients.
The cons of Crowdsourcing
The source is not always trustable, lacking of bonus, less participant, low quality work, raise the risk of the project.
2. Waste of labor
As a contributor, spent long time and energy to finish the work, but your work are not the best for the demander, you get no bonus.