Getting crowd funding to see your business products and ideas come to fruition is an all-or-nothing outcome. Either your crowdfunding campaign meets the goals you set out and you get to develop your idea, or you go home with nothing to show for your efforts. To make sure you meet your targets, here are some of the things you can do to get better results.
Choose the Right Platform
Choose the right platform to reach out to people. Each site has its own niche and rules so find the site that will work best for your success. Different platforms work for different types of crowdfunding models so choosing the right one is important. Here are some of the most popular.
Kickstarter
As one of the first platforms for crowdfunding, there is strong growth with Kickstarter. Kickstarter.com is for creative projects and donation-based funding. If your project is a cool watch or music based, this is the right site to consider. It isn’t for those who are looking for funding for their business, cause, charity, or personal finance needs.
Crowdfunder
If you’re looking to raise investments, Crowdfunder.com has a large network of investors. Considered the new breed of crowdfunding thanks to a campaign where someone managed a $2 Billion exit, this is a great site to be a part of. There are no rewards options with Crowdfunder, but you can incorporate it into your campaigns that do offer reward-based funding.
And the Others
Rockethub powers people to do donation-based funding for creative projects. The FuelPad and LaunchPad programs also help you connect with marketing partners so you collaborate to better your success rate.
If your company is a tech start up and you already have a reputable lead investor, get on the AngelList. Accredited investors and institutions are funding top tech startup deals.
Quirky is a space for those who invent and make things. You can collaborate and crowdfund for donation-based funding. The site helps you with the process of bringing your inventions to life and allows the community within the site to help you in the process.
Perfect Your Pitch
With a reward crowdfunding pitch, videos are known to double your success rate. Be clear and compelling while making sure to consider more about what your investors need to feel investing in you is a smart idea. Ask yourself if the presentation you’ve prepared would make you want to buy your product. Highlight what is unique about your product and why it will be valuable for consumers.
Having social proof of existing investors and the team who are behind your investment offering is important to gain more investments in equity crowdfunding. You want support engagement as well as obtaining notable stakeholders standing behind your campaign and company.
No matter what platform you choose, the results will match how much attention and effort you put into any given platform. It’s not merely a listing service but a way to tie in your fundraising efforts online and off.
The most successful campaign owners will put hundreds of hours into creating the best marketing strategies before they launch. You must plan for “pushes” to get to your desired goals. Equity crowdfunding takes time to structure the offering. You have to figure out what your legal terms will be and engage the investors with storytelling.
A Flashy Introduction
While vying for attention from online donators, keep in mind there are a lot of distractions that may draw attention from you. Your pitch and messaging must be outstandingly unique and grab their attention.
Getting their attention is the first challenge, you will also need to engage them for the long term. Knowing how to engage both the rational and emotional mind is the way to get people investing. You need to appeal to their rationale of the “what” and the “why”.
The best ways to do this are by telling a great story which evokes passion and feeling for the reader. The story can be about yourself, the company, or the project itself. Alternatively, you can create a story about the customer who will be impacted by your product.
Build a Good Lead List
Your campaign will be determined by how much work you do before you actually launch. This is especially true of the marketing and your ability to influence the outcome once you’ve launched. Take time to build your lead list with relevant people in the industry and generate that buzz within your network.
Focus More on Conversions
You want to have a lot of attention, but more important than that is conversions. Many campaigns have a lot of traffic but if nobody is buying what you’re selling, you’ve wasted a lot of time. The best way to increase conversion is to offer valuable perks and reward levels below the suggested retail price. The investor will feel like they’re getting a special deal and not having to overpay to support you. When pricing out your rewards below the suggested retail price, account for fulfillment risk.
Crowdfunding is worth every effort you put into it, but it’s a complex process that involves planning before pitching. You need to think less about your own needs and more about your investor’s perspective. Look at other successful crowdfunding ventures to get a feel for how they marketed their way to success. The opportunities are abundant so take your time and make your pitch perfect. Eat, sleep, and breathe your campaign and tell everyone you know about it.
Leverage Social Media for Amplification
To maximize your impact, start by identifying the social media platforms where your target audience is most active. Create a content calendar to maintain consistency, mixing engaging visuals, behind-the-scenes videos, and updates on campaign milestones. Although with video becoming a dominate medium, at some point you will have to put your efforts into publishing engaging videos since it seems to be a way to connect with followers. Live video may also be a best option. One report found that 50% of TikTok users have bought something after watching a TikTok Live
Engage regularly with your audience by responding to comments, hosting Q&A sessions, and creating polls or surveys. This interaction fosters a sense of community and keeps your campaign top of mind.
Consider using paid advertising to boost your campaign’s visibility. Social media platforms allow for highly targeted ads, ensuring that your message reaches the right audience. However, it’s crucial to monitor ad performance and adjust your strategy based on data.
Plan for Post-Campaign Success
Planning for post-campaign success is as crucial as the campaign itself. A clear fulfillment strategy is essential for delivering on your promises. This involves managing production timelines, coordinating with suppliers, and handling logistics. According to BackerKit, 84% of crowdfunding campaigns face delays in delivering rewards, so transparent communication with backers is key.
Maintaining engagement with your backers after the campaign ends is also important. Regular updates on the production process, shipping timelines, and new developments help build trust and keep backers excited.
Leverage the success of your crowdfunding campaign for future growth. Use the data and feedback gathered during the campaign to refine your product or service. Consider transitioning from the crowdfunding platform to an e-commerce store or preparing for a retail launch.
Celebrate your success and thank your backers. A simple thank-you message or a shout-out on social media can strengthen your relationship with supporters, which can be invaluable for future projects.
Also read:
Understanding the Reward-Based Crowdfunding Model
The Crowdfunding Business Model Explained
This article was first published in. 2017 but has been updated and expanded.
Staff writer: Loraine Couturier is a jet set writing chick from Canada that travels around the globe. Her writing and marketing skills are what keeps her eating exotic meals and jumping on planes. Loraine loves writing about pretty much anything and likes to pass on the knowledge she has to others. Visit her at https://www.facebook.com/jetsetwritingchick
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