Why Your Crowdfund Investors Differ from Other Stockholders - dummies

Why Your Crowdfund Investors Differ from Other Stockholders

By Sherwood Neiss, Jason W. Best, Zak Cassady-Dorion

A crowdfund investor acts differently from the typical stock investor because of the relationship he has with the entrepreneur. After all, how often does a stockholder actually know the company founder, receive direct communication from that person, and have the chance to invest in a company from day one (or at least very early in the company’s life)? Crowdfund investors put their hearts into their investment choices.

People invest in the stock markets because putting cash in a mattress doesn’t earn them any money. (Plus, as the costs of products increase over time, the value of a dollar in the mattress stays the same.) Most investors make investments through retirement funds such as IRAs and 401(k)s, and many of them follow the advice of advisors and/or put their money into index funds.

The majority of these investors aren’t playing a very active role in the investment process.

What does this difference mean to you, the business owner? Your crowd will share a sense of pride and ownership in your business. They’ll want to be more proactive than a typical stock investor because they understand that their voices actually can make a difference to your business.

Therefore, they’ll be much more likely to try to drive traffic to your business. They’ll be much more likely to use social media to share news about what you’re doing. Leverage that enthusiasm every chance you get!