A Beginner’s Guide to Crowdfunding MLM Plan


Kiran Bajpai

Senior editor

Parul Saxena

Chief editor

Last updated: December 2, 2020

One of the most challenging parts of starting a business is finding financial assistance. People nowadays look for investors’ support to start and grow their businesses. Some people have great business ideas but no money. Similarly, there are people looking for ways where they can invest their hard-earned money for good returns. 

This is where crowdfunding comes into the picture. Every entrepreneur needs to know about the crowdfunding industry. It involves an entity or an individual who requires funding, and a large community of people willing to invest/contributes their funds for higher returns. 

However, businesses need a dedicated platform where they can receive crowdfunding money. Crowdfunding MLM software is one such powerful solution that can bring the fundraisers and investors together, building a well-organized channel to help businesses grow. 

What Is Crowdfunding MLM Plan?

In simple terms, the crowdfunding MLM plan helps mobilize funds in the business. 

Crowdfunding MLM plan = Crowdfunding + MLM Business

In a crowdfunding MLM system, a new member (or a downline member) is added to the forum. They all form a community, becoming part of the same crowdfunding project with their own share of the total value of the project. Generally, there is no starting fee for a crowdfunding plan. However, some crowdfunding MLM companies prefer to charge 3-5% of the total fund. 

Also, Read: Top 15 Network Marketing Tips for Guaranteed Success

A project manager is hired to raise the fund from the public and reach out to as many people as possible. 

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MLM crowdfunding plans are gaining popularity, and more and more MLM companies are investing their resources in this system. One biggest advantage is that you can find investors rather quickly, forming a big chain. Plus, it ensures quick success in the MLM business. 

Crowdfunding MLM Plan Features

There is no denying that funding is a fundamental element for the success of any business. You can easily set up a crowdfunding page to raise money for it. 

In the USA alone, there are more than 310 crowdfunding websites. There are ample opportunities in the crowdfunding plan. Some of the features of a crowdfunding MLM plans are: 

Minimum Resources Required

To raise funds via a crowdfunding plan, you require a minimal amount of resources to start your business. The least you will need is a crowdfunding MLM software whereby all the funding plan is monitored.

Low Capital Needed

Crowdfunding MLM plans allow you to start your business with little to no fund, and within a short span of time, you can raise a considerable amount of money. It gives a quick start to your business ideas. 

Secured Investment

Another important feature of the crowdfunding MLM plan is ensuring that all your money is kept safe. But at the same time, it also demands accountability. 

Unlimited Earnings

Many crowdfunding MLM companies have earned millions in this plan within a short time. You can never expect how much you will make. However, you need to be mindful of where you invest the money. 

Easy Money

When more and more people join the crowdfunding project, the amount of investment starts to multiply. 

Advantages of MLM Crowdfunding Plan

It’s crucial to know the various benefits associated with the crowdfunding MLM plan. 

1. Serves as a Free Marketing Tool

Crowdfunding campaigns are one of the best ways to introduce your visions and mission of your business venture into the market. It allows you to reach multiple channels at a single time. In fact, many crowdfunding MLM software incorporates the mechanism of social media. It makes it easy to market your campaign directly on the website as well as other networking channels. 

This increases the chance of getting organic traffic. Besides, in a crowdfunding MLM plan, members spread the word about the project to all their connections. 

2. Provides Valuable Feedback

Since many people are involved in a crowdfunding MLM plan, business owners have the advantage of engaging with the huge crowd. They can set up a brainstorming session to receive feedback and other new ideas for improvement. 

Small businesses or entrepreneurs may have just started, and this feedback can prove valuable as many perspectives are involved here.

3. Provides Access to Easy Money

When a person tries to take loans from banks, venture capitalists, or other accredited investors, they have to either give up their equity or accumulate debt against a mortgage. But in the case of crowdfunding MLM plans, business owners do not have to worry about passing their company equity. They raise the money from the community and, in return, offer them some rewards or tangible products. 

4. Acts as a Market Validation Proof

When you want to raise a huge sum of money and involve angel investors, the first thing they will ask is proof of concept. This crowdfunding MLM plan helps provide the proof as your business has received enough validation from the market. It adds to your business credibility by showing how successful your crowdfunding campaign has been. 

5. Helps Establish Loyal Group of Customers

People who decide to participate in your crowdfunding MLM campaign have trust in your business. They believe that the company is going to be successful in the future. These people are the early adopters of your product or/and service. Thus, you can rely on them for spreading words about your business amongst their friends, family, and other social media connections. 

Crowdfunding campaigns enable entrepreneurs to present their products and services to a vast number of people. 

How Using Crowdfunding Plan Software Can Benefit Your Business

A crowdfunding MLM software acts as a centralized platform whereby all the information related to the funds donated and raised is kept and monitored. To know how effectively it helps businesses, you need to understand how crowdfunding MLM works. 

It has three phases in total.  

Phase #1: Project Planning

This part is where the basic project proposal is drafted. The proposal should include the business vision and missions, estimated expenses, and other relevant information. 

Phase #2: Project Launching

In the second stage, the project is ready to be launched, and requests are made for public funds. This is the phase where businesses make use of crowdfunding MLM software. Many advanced MLM software offer tools that can help promote your campaign on different social media channels. 

Phase#3: Fundraising

The most critical phase of the crowdfunding campaign is fundraising. If you fail to collect your fund effectively, you may not have sufficient resources to run your business. Using the crowdfunding MLM solution, you can request funds from people and use the platform to monitor all your funds. 

Thus, it’s safe to say that the crowdfunding MLM software is an asset to your MLM business plan. 

List of the Crowdfunding MLM Software

Some of the best crowdfunding MLM solutions that you can consider using are: 

1. Finoserv

Finoserv is a popular crowdfunding MLM software that offers tailored solutions to all businesses. It uses the latest technology to help carry out various functionalities, including the registration process, chatbots, various reports on growth, income, etc. 

2. Awapal

Awapal is a leading crowdfunding solution that offers high-end security measures with International norms. It is well-known for its user-friendly interface and the round-the-clock support for any tech queries. 

3. Epixel

Epixel offers a customizable crowdfunding MLM software that can be modified as per the business convenience. It also gives options to optimize reports and other details of the software.

4. MLMYug

MLMYug has years of experience in developing crowdfunding MLM software for many startups and big enterprises. They claim their solutions to be cost-effective, powerful, and easy-to-use. Plus, it can be easily customized. 

5. Zewaa Infotech

Zewaa Infotech lets you easily oversee and control your MLM crowdfunding business. It supports multiple currencies and languages and offers a clean and responsive dashboard. It is an all-in-one solution for raising funds effectively. 

Wrapping it Up

In the current market scenario, crowdfunding MLM business software is one of the fastest-growing industries. In just a short span, it allows entrepreneurs to raise millions of dollars. 

To manage your fundraising campaign effectively, choose the right crowdfunding MLM solution that fits right into your business needs. 

I hope this article was helpful to you. Please let us know what you think in the comment section below. 

Kiran Bajpai is Marketing Associate at SoftwareSuggest. Her expertise lies in Software Analysis. She can never get bored of reading books, especially those related to History and Politics.

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