How to Explain Crowdfunding

It’s important to note that the notion of crowdfunding is new. Most people you mention crowdfunding to will not have heard the term, and explaining how it works can be a challenge. But fear not! Your faithful friends at RocketHub have been doing just that since the company’s inception, and we’re here to help.

Here’s how I like to explain it all:

Crowdfunding for creative projects (aka micro-patronage) is a new way to support creative people.

Back in the day, wealthy patrons of the arts would commission works of art or symphonies from the recognizable artists and musicians of the day. Crowdfunding is exactly the same thing, but rather than looking for a single wealthy patron, we’re looking for small contributions from lots of people.

However, at RocketHub we add a nifty twist:

“Trade, Not Aid” is a RocketHub mantra that helps our users overcome the anxiety associated with asking your network for money. Instead of just asking folks for money (“cyber-begging”), we encourage Creatives (fundraisers) to offer rewards in exchange for every financial contribution. This changes the the conversation from “this is what I need,” to “this is what I am offering you,” and nobody gets nervous about offering a good deal.