It’s never been easier to become an investor. Whether you’re talking about the DOW Industrial Average, the NASDAQ, the ASX, forex or some other exchange, with the Internet, any investment you want to make is a click away. However, these days, investing can also mean putting your money into projects on Kickstarter, Indiegogo and Pozible too.
What Are These New Forms of Investing?
These sites and many others are referred to as crowd sourcing. The way they work is fairly simple too. Someone comes up with an idea for a product, but doesn’t have the money to mass produce it or otherwise get it made. So they take to any of the above sites to get the needed capital. Back in the day, this is where investing firms would come in, but a lot of times they’re now irrelevant.
Investors Receive Rewards for Their Pledges
People can usually invest somewhere between $5 and $100. In return, the manufacturer promises them something like a free version of the product or some other reward commiserate with the amount pledged.
In some ways, this makes complete sense. People are investing in a product, not because they want to see financial returns, but because they actually want the product. So the person making it promises the people they’ll get one if they send money upfront.
A lot of times, in order to secure that initial investment, a manufacturer will promise the product to an investor at a more affordable price. Others can still buy it later, but they’ll have to pay the total price charged for the product.
One kind of cool benefit that can come from being a crowd source investor is that you get bragging rights if the product goes big. It says something about your trend awareness if you were able to find a product before it got huge and invest in it. The more times you do this, the more it says about your abilities.
Sense of Satisfaction
Also, there’s something very satisfying about helping someone accomplish their dreams. Whether or not you believe in karma, helping out others in such a situation can’t help but raise your spirits. Plus, if you truly believe in the product they were putting out, then part of their success feels like yours too.
So if you want some unique benefits from investing, you don’t need to start buying shares. Instead, head to Kickstarter, Indiegogo and Pozible and see what else is possible.