How to succeed in crowdfunding?

Crowdfunding is a way to raise capital for a startup business from people around the world and make them aware of your project. People with a great ideas have possibility to raise the capital they need in return for some profit in future if the idea is that good it profits. There are several crowdfunding sites for example Kickstarter and Indiegogo and they have thousands of campaigns to raise money. However, only a minor part of them have raised more than $100 000. It isn’t the bbut it’s a great platform for smaller projects. There are some things in common in startups that get big money.

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It is a lot easier to raise capital for your idea if you have some customers already. Then you can announce your campaign to them. Customers, fans and followers are the people who are most likely going to fund your idea. You may think that your idea is mind-blowing but if you have no built-in audience you are unlikely to get the money you need. Before you put your crowdfunding site online you need to think how you get people to visit your campaign page.

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Many of the most successful campaigns offers something groundbreaking. They have involve breakthrough technology or a use of an existing technology. Even when you have a great idea and you offer something very ”cool” you need presell your project before the launch day. You need to talk to your audience what you will offer to them and give them updates how the progress is going so they keep interested. Ideally your audience keep the ”hype” going and tweets and writes blogs about your campaign and idea.

One of the best marketing tools you have in crowdfunding is video. You really should invest your time and money and make your video great. If the people who watch it shares it with their friends and they share it with their friends you are more likely to get them to put up their money on your project.

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You may reward the donors an alternative ways than just sharing the profits with them. That could be the one thing that differs you and your idea from the others. You could make personal calls or emails to the donors, give them discounts of your project or some limited edition versions of your product. You could even give the donors behind the scenes tours where you can tell more about your idea. The reward could be anything that motivates people to fund your idea. However, the crowdfunding campaigns are not charity work so you really need to give the donors real value for their investments.

 

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4 Responses to How to succeed in crowdfunding?

  1. konstapu says:

    Good post about the basics of setting up a succesful crowdfunding campaign. Nice use of words.

  2. iiroten says:

    Nice packaged information about crowdfunding!

  3. arttumo says:

    Well summarized post about crowdfunding, wasn’t too short or too long to read so it stayed interesting.

  4. aripekks says:

    I found this post really interesting and got lot more info about crowdfunding. Good job!

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