THE BLOG

The True Cost of Crowdfunding -- Beware the 5 Percent!

Everyday I see more crowdfunding campaigns cross my social media feeds and inbox. All I see is cash flow, and in this case, cash flowing out of everyday people's pockets. You know if you've read my book, The Cold Hard Truth: Men, Women and Money, that I loathe the little ways that money goes to die. I call it Ghost Money. Well, when you're running a crowdfunding campaign, the typical platform fee of 5 percent, amounts to $50 on a $1000 campaign -- that's $50 gone from your pocket. Ghost money.

Last season on Shark Tank, I invested in the crowdfunding platforms Honeyfund and Plumfund. What I loved about this company is that they've found a way to bring everyday crowdfunding for weddings, honeymoons, anniversaries, birthdays, hardships and more to the masses, without the 5 percent!

When I spoke with co-founders, Sara and Josh Margulis, about the 5 percent, here's what they shared with me:

crowdfunding

So next time you need to crowdfund a life event, project, or cause, please do me a favor and let your money live! Honeyfund and Plumfund both work in the US and Canada. Both platforms work in both the US and Canada.