What was once a unique way to generate money is now a common, and even necessary, component of starting a business thanks to the growth of successful crowdfunding campaign? According to a Massolution Crowdfunding Industry 2015 analysis, more than $34 million in investment was provided by crowdfunding to enterprises in 2015. In actuality, crowdsourcing is about to surpass venture capital in terms of total funds raised. Read on to learn how to create a successful crowdfunding campaign.
But as crowdfunding becomes popularity, there is more competition for consumers’ attention and money. According to market analysis from the London-based company The Crowdfunding Centre, campaign success rates in 2015 ranged from 31% at the high end (Kickstarter) down to just 11% (Rocket Hub). If you want to raise money successfully, you’ll need to put in three to six months of arduous preparation before you start.
Steps for Creating a Successful Crowdfunding Campaign for Your Business
Start your campaign early
According to Fundable, campaigns have a higher chance of success if they receive more than 30% of their donations in the first week. This implies that you must have supporters lined up before your campaign launches. Prior to launch, secure a commitment from those who will be a part of your entrepreneurial inner circle, whether they are family members, former business partners, or other individuals. Then, personally follow up to make sure they keep their word. Many companies initiate their campaigns in secret to a small number of potential backers and only make them public once they have hit their 30% financing target. Although your early supporters will be your friends and family, the rest of the world wants to feel like they are a part of a successful movement.
Share a memorable tale
Facts are excellent (and essential), but they’re not always motivating. By telling a compelling tale, you can engage supporters on a deeper level and entice them to open their wallets. What issue is addressed by your product or campaign? How will it benefit your reader or the person you’re trying to make them care about? Why is it unique? Make potential donors want to dig into their pockets to support your project.
Create a superb video
According to crowdfunding website Indiegogo, projects that include pitch videos raise four times as much money as those that don’t. It must be well-paced, inspiring, and well-edited and scored. Consider it a visual depiction of the fantastic narrative you’re telling; a poor production will detract from the story, regardless of how fantastic it is. An unprofessional video can imply that you’re not serious about your company.
Display professionalism at all times
Don’t compromise on anything that reflects your entire professionalism, including your high-quality video. Spend time and/or money on top-notch writing and photography. Additionally, you should have a website with more information that is well-designed and functioning, or at the very least a landing page. Investors will begin to question whether you care about them enough to use their money wisely if you cut corners on presentation.
be specific and comprehensive
To encourage people to assist you in achieving a certain objective for your organization, keep in mind that your purpose is not simply to cry “Give us money!” A first production run, the opening of a new location, or the addition of a feature to your core good or service could all be examples. You must detail the purpose of the funds you are requesting for this particular stage of your firm. In light of that, make your campaign goals as modest as you can. Save your hopes of making money for later since if your campaign is unsuccessful with some crowdfunding services, you won’t receive any money. Your aim must be specific, attainable, and centered on resolving the one stated issue that has just sparked the interest of your supporters.
Appreciate your backers for taking the risk
The benefits your backers receive for supporting you are referred to as “perks” in crowdfunding. Your campaign is an opportunity to provide backers a discount in exchange for the risk they’re taking by contributing to an idea that hasn’t yet materialized. Set prices below MSRP so that everyone who chose to “wait and see” will pay more. This will prevent you from losing money. Also take into account intangible benefits, such as insider information, public recognition, or even lunch with a team member.
Provide different price ranges
Give your supporters a variety of options to “back” you. Small, intangible benefits for donations are fine for some campaigns, but be cautious to include enough benefits for contributions over that amount to encourage people to contribute more. Depending on their target supporter, many campaigns include pricing points in the hundreds, and some even have options in the thousands. But regardless of your pricing range, having more price points ensures that a wider spectrum of people can participate in your campaign.
Get the word out
Use all accessible channels to spread the word about your campaign. Three excellent ways to get started are through social media updates for your fans, sponsored updates (paid social media ads), and email blasts. Build excitement prior to the campaign’s launch to ensure that people are eager to participate when it does. You should also post or send regular updates as the campaign approaches a successful conclusion. Every update should have a compelling call to action that inspires the reader to act—whether that action is to share the post, leave a comment, or donate.
Be sure to keep supporters updated on the campaign platform as well as on social media on a regular basis. Once people have donated, keep them informed and enthused by posting milestones, updates, and announcements about the campaign’s progress, as well as by responding to comments, clearing up any confusion, thanking supporters, and sharing personal words from the team.
Get ready for the finish
This entails checking your overpromising of what you can provide before launch. After the campaign, this entails continuing to invest time, effort, and resources in keeping in touch with your backers by providing regular updates about deadlines for action, expressing gratitude, actually delivering the product, and maintaining their engagement as a key audience for your next campaign.
Although crowdfunding requires a lot of labour, the financial and marketing benefits can be quite rewarding. It can make more sense to go for a small business loan through a bank or private lender depending on your industry and skill set.
For tutorial on how to create a successful crowdfunding campaign:https://www.youtube.com/watch?v=1UdSpnycnKY