Know the difference: Crowdfunding VS. CrowdSharing


The Crowdfunding targets the funding of a project...

The crowdfunding generally consists of selling non existing products in advance in order to finance them. Most of the time it is not delivered in time, and sometimes, not at all.

The early Crowdfunding model appeared in the late 90’s, in order to support musicians to produce live tours and CD recording. It was even more popularized when the two main platforms still hold good today appeared: IndieGogo (2008), KickStarter (2009). Those crowdfunding platforms helped a myriad of people with great ideas to make their projects come true. The projects are infinite and the possibilities are endless.

A single-time reward-based model

Once the project is online, “backers” can choose between multiple offers. Depending on how much people financially supported the project, they receive a reward for their action. Most of the time, the reward is the goal of the project, i.e, if the project is a smart oven, the reward will be the oven with a added-value (discount, upgrade, free props).

… Whereby the goal of CrowdSharing is either a charity goal or to reward supporters by sharing the profit generated over time.

Why did LivingPackets choose a CrowdSharing campaign model?

At this time, even Google doesn’t know for sure what CrowdSharing is. If we look for the exact term “crowdsharing”, the famous searching engine offers “crowdsourcing” as an alternative keyword. For most of companies, the main goal of a CrowdSharing campaign is to reduce the growing gap between the rich and the poor

A fair profit-sharing model

The CrowdSharing campaigns gather people that share the same objective and care for the others. The profit sharing is a fair business model that allows a community to grow fairly by itself in a collaborative way. People can invest in a project or venture and, as a counterpart, receive a financial return on investment over time, depending on their participation.

LivingPackets enabled a Profit-Sharing model supported by a smart delivery technology and a committed community. LivingPackets revolutionize the express delivery by combining technology with the existing flow of travelers. Since the product already exists, the company asks for support for its vision and to produce the Livingpackets by the millions. This will allow to share the profits.

LivingPackets imagined a new model where the “backers” named here “Sharing Angel” (as opposed to Business Angels) are rewarded for their financial contributions and are at the center of that strong community. It is a win-win relation where those who contribute the most get the most. More important, the profits generated by the company is fairly shared (50/50) among the community. They are also invited to contribute actively and take part as key players in the project once launched (i.e Customers, Guardians, Voyagers). Doing so, the Sharing Angels have the possibility to increase their rewards. We are hardly convinced of that innovative CrowdSharing campaign success and it would allow LivingPackets to bring to life its project and share their profits within its community.

If you want to know more about the LivingPackets CrowdSharing campaign, please visit www.livingpackets.com or contact us directly.

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