What is Crowdfunding?
Crowdfunding is a system of collective financing of projects through contributions on the Internet. Furthermore, these projects do not always have to be business initiatives. There are other possibilities such as:
Solidarity projects.
Political campaigns.
Non-profit organizations.
There are five crowdfunding models depending on the reward that participants receive. These are:
In the form of shares or participations in the company: the person who donated the money becomes part of the company as a partner.
Donations: no benefit is expected in return.
Loans or crowdlending: those who participate obtain some type of interest on the money lent.
Royalties: participants expect to receive a symbolic part of the profits.
Rewards: A previously agreed upon reward is obtained as a gift or service from the project.
How does crowdfunding work?
There are a series of steps that will vary depending on the type of crowdfunding carried out and the platform used. However, there are some phases that are common in all models:
Choosing the crowdfunding platform: the entrepreneur sends his project to a crowdfunding platform.
Presentation of the project: you have to dedicate time to this phase since your potential investors will be aware of all the information. Indicate the project data, the amount you need and the crowdfunding model you are going to follow. If everything is correct, the platform will publish it.
Publication: a time is established in which investors make their donations.
Project Closing: Once the deadline is over, the project is closed. The money earned is checked. The platform will ensure that the reward type has been fulfilled.
Important crowdfunding platforms
There are many interesting platforms today for this type of financing. Numerous projects have emerged from them that have become a complete success.
Some of these platforms are:
Kickstarter: born in the US in 2009. It has millions of users and is the best-known platform. It is focused on creative projects.
Verkami: is a Spanish platform that emerged in Barcelona in 2010. Related to cultural projects, art and gastronomy.
Ulule: it was the first to be created in Europe. Thanks to it, more than 24,263 projects have been developed. It is focused on comics, music, movies and videos.
Indiegogo: of North American origin. It has a wide variety of categories. It has promoted more than 800,000 projects since 2008.
Goteo.org: focused on projects with social impact. It has more than 150,000 donors.
FutureFunded: emerged at the end of 2017, with female entrepreneurship taking great importance.
Lánzanos: it is a Spanish platform with more than 7 million euros raised and 2,500 projects. Among its categories we find: photography, technology, environment and cinema.
If you are thinking about launching your own business, we show you the case of our most relevant client AROMA 59 thanks to Crowdfunding:
After two years of development, we’ve formulated our first line of fragrances that represent the power and calmness of nature, right at your fingertips. But we’re changing the way its traditionally presented – a fragrance that is no longer in a liquid state, but rather, in a natural solid state.
We firmly believe that what we put on our skin is just as important as what we put in our bodies – as a result we made sure Aroma 59 contains no toxins that we found most fragrances contain. We’re thrilled to share that Aroma 59 is Paraben, dye, Phthalate, SLS, and alcohol free along with being vegan, re-fillable, recyclable, and cruelty/animal testing free.
Our Timeline
At this point, we’ve successfully launched three campaigns, reaching over 20,000 backers. With each campaign, we’ve refined and optimized our manufacturing and ecommerce fulfillment processes to ensure smoother, faster, and more reliable deliveries. Our commitment to efficiency and precision has allowed us to deliver on time, and with Aroma 59, we aim to continue this tradition.
Throughout this journey, we will maintain transparent and consistent communication with our backers at every stage. Thanks to our streamlined ecommerce fulfillment strategy, you can trust that Aroma 59 will be in good hands from production to delivery.
Challenges
At Aroma 59, we are incredibly passionate about our product and deeply committed to ensuring a smooth and reliable experience for every backer. Our dedication to excellence means we’re prepared to do everything within our power to overcome any challenges that may arise along the way – that’s our promise to you.
As many people know, Kickstarter projects can face difficulties with production schedules and meeting shipping deadlines. From unexpected supply chain issues to logistical hurdles, these obstacles can be significant. However, thanks to our partnership with iLogisticsUSA and their expert ecommerce fulfillment services, we’ve been able to avoid common pitfalls. iLogisticsUSA has been instrumental in helping us execute our calculated production and delivery plan with precision. Once we secure funding, we seamlessly shift into action, preparing and shipping Aroma 59 capsules to our backers, a process we have successfully carried out since September 2022.
Our collaboration with iLogisticsUSA has been key to our success. Their ecommerce fulfillment capabilities go beyond simply shipping products; they provide a reliable, end-to-end logistics solution that helps us optimize every step of the process. We’re proud to say that with iLogisticsUSA, we have consistently completed our previous campaigns ahead of schedule, ensuring our backers receive their Aroma 59 capsules promptly.
This partnership not only allows us to stay on track but also to build trust with our backers by meeting or even exceeding their expectations. We fully intend to carry this commitment forward into all future campaigns, keeping efficiency, transparency, and reliability at the heart of everything we do.
By choosing Aroma 59, you’re supporting a project backed by a robust ecommerce fulfillment system that has repeatedly proven its reliability. We’re grateful to have completed our previous campaigns with iLogisticsUSA ahead of schedule and intend to do exactly the same with all subsequent campaigns.
