Crowdfunding: 5 Signs of a Successful Campaign
Crowdfunding: 5 Signs of a Successful Crowdfunding
While there are many advantages to crowdfunding, the truth is that websites like Kickstarter and Indiegogo aren’t going to be the best fit for every entrepreneur or new venture. While these platforms promise bigger audiences for less cost in time and money, their success stories share common elements. Without these elements, you might be better off pursuing more traditional ways to raise revenue.
They Tell an Engaging Story
You need to be able to win your customers and potential investors over on an emotional level. Successful crowdfunding campaigns do this by offering compelling stories in addition to interesting products or services. Your audience wants to know the passions that have brought your team together and the challenges that you have all faced along the way. Create a shared history in which your contributors can invest emotionally, not just financially. Do it right and your investors will feel like part of the narrative, which translates into an eagerness to contribute.
They Have a Laser-Focused Pitch
Remember that your startup faces almost limitless competition for funding. Your pitch must be strong and precise. This is doubly true when it comes to crowdfunding online, where you will be competing against businesses from all over the world. Your audience isn’t going to want to spend time deciphering what your message is. You must be clear and direct with what you have to offer. This means using quickly consumable media like infographics and short videos. Avoid the temptation to be complicated or flashy. Simplicity will speak volumes.
Social Media Campaigns Back Them Up
Crowdfunding platforms pair with social media like steak and red wine. A good campaign will drive social media engagement, which will mean more contributions and exposure for your campaign. This creates something like a positive feedback loop or snowball effect, where engagement fuels more engagement. Social media strategies are a fundamental part of business and marketing in the age of the internet. Even if your startup chooses an option other than crowdfunding, staying on top of your social media game should absolutely be prioritized.
Their Founders Possess Strong Networking Skills
Unless you are a major influencer, social media probably won’t be able to raise enough capital in-and-of-itself to get your business off and running. You’ll want the support of your friends, family, and any existing clients or customers as well. Don’t ignore face-to-face networking and email marketing, either. Try to get the word out about your business before you start asking for money. Crowdfunding works best for those who already have an established fanbase. If you’re still scrounging around for interested parties, you might be facing an uphill battle on this one.
Their Rewards are Well Thought-Out and Create Engagement
While there will always be exceptions, most of your investors will be making their contributions with the expectation that they’ll be getting something in return, whether it’s equity in your company, a discounted first-run of the product, or a branded t-shirt. It’s also customary to offer different reward tiers for different donation levels and to include the items found at previous levels in the higher tiers. For instance, a $10 contribution might include a company t-shirt, while $20 would come with the t-shirt and a poster.
You can read more about the different reward systems used for crowdfunding here.
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