From clever gadgetry to the Veronica Mars movie, the world is filled with projects that might not exist without the aid of crowdfunding. Though less than a decade old, sites like Kickstarter, Indiegogo and Fundable have helped connect innovators with a global community of supporters, resulting in thousands of successfully crowdfunded projects and millions of dollars in pledges.
While entrepreneurs might feel reluctant to ask for what essentially feels like a hand-out, crowdfunding is an increasingly acceptable way to not only raise funds for projects, but to market your company and gain valuable insights into your customer base. With the right preparation, you can create a crowdfunding campaign that will impact your business in a significant way.
Just keep these simple steps in mind:
1. Decide if crowdfunding is a good fit for your project.
Crowdfunding isn't a perfect fit for everyone. Are you offering something unique that people will get excited about and be inspired to invest in? Have you developed the product as much as you can with the funds you have available? In other words, do you have a viable product that only needs a little push, or a long-shot pipe dream that has little base in reality?
2. Choose the right website for your project.
There are a number of websites that can host your campaign- each with subtle differences. Take some time to browse each site, and choose the one that feels like the best fit for your project.
Don't expect to build your project page in a day. This is the page that will determine whether or not someone will invest in your company. Therefore, it has to be clean, concise and professional. The title and description should immediately pique readers' interest and clue them in as to what you're offering while avoiding words like "help" and "fund." Your image should accurately represent the project, and your bio should make you seem at once accomplished and approachable.
Once you've accomplished the basics, move on to the meat of the page. If the site supports a video, invest the time in making one that tells your story; even an iPhone video can be effective if it's thoughtfully done. Sell yourself with a pitch that enthusiastically describes your project while inspiring people to invest in it. And decide on a realistic fundraising goal for your project. How much do you need to succeed?
4. Create attractive rewards.
Most people don't just invest in projects out of the goodness of their hearts. They want to get something out of it, which is where the rewards come in. Most campaigns offer rewards related to the project itself, with different levels of rewards corresponding with a respective donation level. Backers of the Formlabs' Form 1 3-D Printer (pledged nearly $3 million) received a printed gyrocube, while backers of Zach Braff's movie Wish I Was Here ($3.1 million pledged) got a weekly production diary detailing the behind-the-scenes film making process.
5. Promote yourself!
Start promoting your campaign before it even launches. Using social media and word-of-mouth, let your followers know that you have something exciting brewing. Once the campaign officially launches, market it with every tool at your disposal, and don't be shy about asking people you know to do the same. In most cases, you only have a limited amount of time to make your goal, and if you don't reach it by your deadline, you get nothing.
6. Be prepared for any outcome.
Creating a crowdfunding campaign takes a certain amount of bravery because if you fail, it's very public and very painful. Prepare yourself for the possibility of not reaching your goal, and don't let that kill your dream. Whether you succeed or not, pay attention to public feedback -- both positive and negative -- and take it all into account when moving forward. If you don't reach your goal, seriously consider whether it's because the product you're offering doesn't have a market, or whether you neglected to market it correctly. And if you succeed? Be prepared to deliver on all of your promises -- and fast.
Have you ever created or invested in a crowdfunding campaign? What do you think are the keys to success?
Author Bio
This article is written by Diana Gomez, the Marketing Coordinator at Lyoness America, where she is instrumental in the implementation of marketing and social media strategies for USA and Canada. Lyoness is an international shopping community and loyalty rewards program, where businesses and consumers benefit with free membership and money back with every purchase. Check out Lyoness on Facebook.
While entrepreneurs might feel reluctant to ask for what essentially feels like a hand-out, crowdfunding is an increasingly acceptable way to not only raise funds for projects, but to market your company and gain valuable insights into your customer base. With the right preparation, you can create a crowdfunding campaign that will impact your business in a significant way.
Just keep these simple steps in mind:
1. Decide if crowdfunding is a good fit for your project.
Crowdfunding isn't a perfect fit for everyone. Are you offering something unique that people will get excited about and be inspired to invest in? Have you developed the product as much as you can with the funds you have available? In other words, do you have a viable product that only needs a little push, or a long-shot pipe dream that has little base in reality?
2. Choose the right website for your project.
There are a number of websites that can host your campaign- each with subtle differences. Take some time to browse each site, and choose the one that feels like the best fit for your project.
- Kickstarter: The most well-known crowdfunding site with perhaps the most rigorous application process. Focuses on art, publishing and technology.
- Indiegogo: Accepts any and all kinds of projects from around the world.
- Fundable: Focuses on helping small businesses raise capital.
- StartSomeGood: Open only to social good projects.
Don't expect to build your project page in a day. This is the page that will determine whether or not someone will invest in your company. Therefore, it has to be clean, concise and professional. The title and description should immediately pique readers' interest and clue them in as to what you're offering while avoiding words like "help" and "fund." Your image should accurately represent the project, and your bio should make you seem at once accomplished and approachable.
Once you've accomplished the basics, move on to the meat of the page. If the site supports a video, invest the time in making one that tells your story; even an iPhone video can be effective if it's thoughtfully done. Sell yourself with a pitch that enthusiastically describes your project while inspiring people to invest in it. And decide on a realistic fundraising goal for your project. How much do you need to succeed?
4. Create attractive rewards.
Most people don't just invest in projects out of the goodness of their hearts. They want to get something out of it, which is where the rewards come in. Most campaigns offer rewards related to the project itself, with different levels of rewards corresponding with a respective donation level. Backers of the Formlabs' Form 1 3-D Printer (pledged nearly $3 million) received a printed gyrocube, while backers of Zach Braff's movie Wish I Was Here ($3.1 million pledged) got a weekly production diary detailing the behind-the-scenes film making process.
5. Promote yourself!
Start promoting your campaign before it even launches. Using social media and word-of-mouth, let your followers know that you have something exciting brewing. Once the campaign officially launches, market it with every tool at your disposal, and don't be shy about asking people you know to do the same. In most cases, you only have a limited amount of time to make your goal, and if you don't reach it by your deadline, you get nothing.
6. Be prepared for any outcome.
Creating a crowdfunding campaign takes a certain amount of bravery because if you fail, it's very public and very painful. Prepare yourself for the possibility of not reaching your goal, and don't let that kill your dream. Whether you succeed or not, pay attention to public feedback -- both positive and negative -- and take it all into account when moving forward. If you don't reach your goal, seriously consider whether it's because the product you're offering doesn't have a market, or whether you neglected to market it correctly. And if you succeed? Be prepared to deliver on all of your promises -- and fast.
Have you ever created or invested in a crowdfunding campaign? What do you think are the keys to success?
Author Bio
This article is written by Diana Gomez, the Marketing Coordinator at Lyoness America, where she is instrumental in the implementation of marketing and social media strategies for USA and Canada. Lyoness is an international shopping community and loyalty rewards program, where businesses and consumers benefit with free membership and money back with every purchase. Check out Lyoness on Facebook.











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