Figuring out how to “monetize” your business on the Web has a whole meaning these days with the growing popularity of crowdfunding, a popular way for entrepreneurs, artists and inventors to get their projects funded in a non-traditional way.

Crowdfunding collects money  directly from a target audience. Small donations can add up to hundreds of millions of dollars, many of them processed through services like Kickstarter.

Fueled often by social media connections, projects attract backers who make a modest investment toward a stated funding goal for a set period of time – typically a minimum of 30 days. The fundraising site takes a small cut, of course. But if the project meets its target goal, the funds are then transferred to the project’s creators.

Kickstarter’s not the only option, but it is hugely popular. Other options: Of course, Kickstarter isn’t the only option. Others include Indiegogo,  Feed the Muse for musicians, 8-Bit Funding for indie games and Sponsume for United Kingdom inventors.

Tags: crowdfunding, finance, Kickstarter, project