Rewards based crowdfunding is an exciting new way for entrepreneurs to obtain the funds they need to launch their business, new products or services. Crowdfunding platforms like Kickstarter and Indiegogo provide entrepreneurs with the tools they need to collect many small amounts of money from a large number of people. In return supporters are provided with a “reward”, which is often a pre-order of the product or service that you plan to launch once you obtain the funds.
It is a great way for business owners to market their ideas, build a community around their business and provide new products and services to their supporters ahead of the general public.
Here are top 5 tips to crowdfunding success provided by the ladies at Cliq Crowdfunding and PR.
1) Give yourself enough time to plan a campaign
Creating a successful crowdfunding campaign is a lot of work and it should be something that is built into your overall business strategy. It is not as simple as entering your information into the platform page and then receiving donations. Unless you are a rare exception that sometimes occurs like the ‘Potato Salad Campaign’, you need to market your campaign, build your community and convince a lot of people why they should give you small amounts of their hard earned money.
Planning of the campaign should become your full time priority at least three months before you launch. The more preparation you do and the more hype you can create prior to your campaign launch the higher your chances are of success.
2) Know your audience and build a community
Crowdfunding is about building a crowd of supporters around your business. It is a great opportunity for you to find your superfans and make them feel like a special significant part of your success.
Most people who fail to achieve their crowdfunding goals do so because they have failed to engage their audience and provide a community atmosphere for their supporters.
Regular communications in the form of updates, social media shout outs and personal thank you messages to your supporters will not only make them feel appreciated but will also encourage them to talk about your campaign and get you further support.
3) Make sure your business is ready
You need to make sure that you can fulfill your promises. If you say that you are raising the money to bring out a new product then you fail to develop the product, or haven’t budgeted correctly you can ruin your reputation and peoples faith in crowdfunding.
Have a solid business plan, set reasonable goals and make sure that you communicate any delays, or productions problems with your supporters so that you can maintain transparency.
In addition make sure that you budget enough time off for the months following the campaign to deliver all of the rewards to your supporters.
4) Make sure your campaign is focused
You may be bringing out five new products but your campaign should focus on one. It needs to be clear what you are raising money for and the more simple you can make your campaign the better your chance of success.
A lot of campaigns fail because people are not sure why they are being asked for money.
5) Perfect your video
Your video is the most important part of the campaign. It is what you want shared all over social media. It is what will explain your vision, brand and product. It is the most effective and direct way to tell people why they should support your idea and what you can offer them in return for their support.
Do not skimp on your video, spend some money and make it creative. Think about what kind of video’s you like to share of social media. Make people laugh, make them cry or make them care about something. You can choose any angle so long as you don’t make them bored.