Raising Funds through Social Media: A Look at the Recent Big Ones
Raising funds has always been a difficult task, irrespective of whether it is for personal use or as part of an NGO. Now, experts are taking a look at the opportunities on social media and networking sites such as Facebook and Twitter to achieve this without having to spend much on large awareness campaigns.
The logic behind this is that news spreads far faster on online fronts as such, and gaining information from a friend or colleague is far more effective than a stranger trying to give you a good reason why funds are needed. It is also much more cost-effective in comparison to elaborate programs designed to get the attention of donors.
The Federal government and deficit financing
Take the example of the Federal government. Following the meltdown and the 17 trillion dollar debt that the US currently faces, one of the budget financing solutions is the use of social media platforms to generate funds from the public. Even if each individual makes a small contribution, and a few affluent people make major donations, the deficit will be cut down by a large amount.
This process may be very difficult to incorporate because people already pay taxes. However, taxes are a compulsory amount that has to be given. Instead of this, if taxes were reduced, and if people were made aware of the importance of the situation, this branch of deficit financing could actually be brought to reality.
NGOs and NPOs reaching out to the public
Apart from the government and such large amounts, social media platforms have been quite successful in providing a space for NGOs and NPOs to put forth their causes and gain the sympathy of the general public. Awareness is created at high levels and speeds when incorporating such websites.
It is also a great way to generate funds because the information actually reaches those who care about the causes specifically. A region of the country which has recovered from floods may be more inclined to provide financial support to other parts who suffer from the same, for example.
Investment banking and trading
Another interesting take on the field of financing is investment banking and trading. The sentiments of the people account for the fundamental analysis of all trading platforms. If the people’s sentiments are negative in a bearish market, the market will tend to continue to fall for a good amount of time.
Many brokers and traders have started understanding the importance of social networking sites in this manner. With regular tweets about how people feel about certain commodities and stocks, the odds are in the favor of the trader who goes with these common feelings. This is because the prices move as a direct function of demand and supply.
So if the masses feel that the economy is recovering, a large number of people start buying commodities and stocks in the hope that they will rise. By doing this, they tip the balance towards those who are buying, and the prices do in fact rise for a good amount of time.
Digital Marketing Strategist in IBOXSEO. Who have worked with firms in the UK, Ireland, and HK on growing their online presence via lean strategy. Hugely passionate about the evolving nature of SEO, He is always interested in the latest shifts and patterns, particularly related to content marketing.