How to Start Your Business on the Cheap--With Help From the Crowd

Release time：2012-02-21
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If you need help turning your brilliant idea for a product or service into a functioning business--and get that help for a pittance--look to the Internet. With more than two billion people online, a lot of talent is out there, and many smart and artistic people are willing to help you make your vision into a reality, often at a surprisingly low cost.

But how do you effectively communicate your needs to the hive mind and realize your dream? That's where crowdsourcing websites come in. Most of these virtual marketplaces are purpose-built for funding ideas or creating graphic designs. Others are full of eager Internet users willing to do all sorts of creative and crazy things for as little as $5.

Not all crowdsourcing websites are based on the same model: On some of them, you submit a project and others bid for your money, while on others you submit an idea and pitch it to others to generate financial backers for it.

Here's a guide to four of the best crowdsourcing websites, each with its own unique highlights and advantages.

Use Kickstarter to Fund Your Project

Kickstarter is a crowdfunding website: You come up with an idea, write a persuasive pitch, and post it online. If it's good, the public (hopefully) buys in and pledges money to make it a reality. Every Kickstarter project has a pledge minimum, and if the project doesn't earn the minimum amount within the time allotted, no money is collected. Even if your pitch succeeds, you don't get the entire amount: Kickstarter takes a 5 percent cut, and Amazon (the payment processor) takes 3 to 5 percent.

Of course, having an amazing idea isn't enough; only 46 percent of all Kickstarter projects meet their funding goal, so it's important to maximize your project's chances of success by following these simple steps:

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