Crowdfunding can be a great way to raise money for your business. But to truly capitalize on it, you first need to understand which type to pursue, says Sally Outlaw, founder and CEO of the crowdfunding consulting provider Peerbackers.com.
There are three available models: donation-based, reward-based and investment-based crowdfunding.
Selecting one "really depends on the type of project you want to get funded as well as the state of business that you are in," she says.
Watch the above video to hear Outlaw identify the best crowdfunding strategy for early stage versus more established startups, including why reward-backed crowdfunding is a good bet for brand new, consumer-focused companies.