You won't believe how much money that crowdfunding sites are making. They didn't even exist just a few years ago, yet people just like you are donating money every few seconds.
The site Kickstarter alone receives donations every five seconds on average. The company has had huge successes, raising millions of dollars for people whose projects have gone on to be extremely successful.
However, Kickstarter has had some hugely embarrassing flops, too. Keep reading for a couple of those.
Since launching in 2008, Kickstarter has raised nearly $3 billion for 12.7 million products. Kickstarter raises money specifically for creative projects.
Here's how it works. If you have a project, say a video game, you post details about it on Kickstarter. You ask for a specific amount of money, like $100,000. In exchange for your donors' donations, you promise them something in exchange. They might be the first person to play your video game, for example.
If you don't raise all the money you're looking for, Kickstarter returns everyone's donations. So far, about 87 percent of Kickstarter donations have gone on to successfully fund projects. The company has returned about $380 million for unsuccessful campaigns.
Bonus: The crowdfunding site GoFundMe, which raises money for good causes, has raised $3 billion in pledges since 2010. Another site, Indiegogo, has raised about $1.1 billion since 2008.