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Related: capital, startup
Consumers pay early,
workers gain property,
and production begins.
Investors are compensated with just one round of production.
There is no interest bearing loan,
and the principal
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====Types
Rewards-based crowdfunding means the investors are consumers prepaying for a future product.
This gives the producers an interest-free loan which is repaid as the product is delivered.
Equity-based crowdfunding means the investors are speculators seeking profit.
These investors become shareholders who expect the product to be sold above cost to create the exchange value (profit) as their ROI.
Donation-based crowdfunding means the investors generally hope the campaign succeeds, but do not receive anything as a direct return on investment (ROI).
The ROI for these investors is usually a single instance of that good or service.
They do not become shareholders or owners of any kind so expect only one round of production.
Crowd Control-based crowdfunding means the investors are consumers who become co-owners For Product.