Crowdfunding is the collection of finance from backers—the "crowd"—to fund an initiative and usually occurs on Internet platforms. Crowdfunding models involve a variety of participants. They include the people or organizations that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. Crowdfunding is then supported by an organization (the "platform") which brings together the project initiator and the crowd.
Crowdsourcing is often mistaken for crowdfunding. Although they are similar, crowdsourcing is broader in concept. In addition to crowdfunding, it may also involve pooling skills or knowledge of various individuals in order to complete an objective.
Kickstarter is a global crowd funding platform for funding creative projects. The company takes 5% of the funds raised and claims no ownership over the projects and the work they produce.
SME*s can use crowdfunding as means to establish a business (i.e. through KIckstarter) or innovate a current business. In addition, it can be used as a strategy to gain revenue. For example, crowdfunding is a suitable model for online services that people highly value. Fitness Blender is an example of this.
The operators of this website are personal trainers (also husband and wife) and they provide free online workout videos. They have millions of followers on their YouTube channel which has hundreds of free and useful fitness videos. They promote the belief that fitness ought to be affordable and accessible. For that reason, they get a percentage of their revenue from donations.