Easy – because ‘crowdfunding’ isn’t just about funding. There’s another word in there.
It’s a powerful way to learn about the people who want your product. It helps you understand your demographic at a time when you can actually react and make important choices. Exposing your product early can be risky but it gives you information about your future customers you simply can’t get any other way.
Crowdfunders pay attention to every tiny detail of your product and take it apart in every which way until they’re sure it’s worth their money. It means that the support you get from them is genuine support for the product. It’s a way to publicly validate your ideas. The bottom line? People who use crowdfunding sites only to raise money may be missing the bigger picture.
Coming up: Kickstarter vs. Indiegogo (A cage match)