7 tips for your crowdfunding campaign
Social media and crowdfunding is changing the way we do business. Crowdfunding websites connect entrepreneurs with investors and causes with contributors.
What is Crowdfunding?
Crowdfunding is one of the newest ways entrepreneurs are using to raise funds to get their ideas off the ground. Is often defined as the collective effort of individuals who network and pool their money to support efforts initiated by other people or organizations. Basically, you submit your project, idea or cause to a community of investors or contributors and they help raise funds to get started.
Well, it’s not. Crowdfunding requires that you have a great idea, excellent social skills, a reliable network and most importantly the willingness to strive for it and make great efforts to get your project funded. Remember, in crowdfunding nobody is going to give you money, you are going to work for it.
So, if you are ready to start a crowdfunding campaign, here are 7 tips to help achieve success and secure funding for your project.
1. Choose the right crowdfunding site.
There are several crowdfunding websites (indie go-go, kickstarter, softfunding, profounder, etc.) You need select the most suitable website for your campaign. If your project is a consumer good you should go for softfunding.com, if you are creative then look for indie go-go, each website caters to a specific audience.
2. Research similar crowdfunding campaigns.
You need to do your research, you need to look for previous campaigns (successful or unsuccessful) and analyze what make them reach or not reach their goals.
3. Have a plan.
It is very important to plan ahead, remember that managing a successful crowdfunding campaign can be very hard work and is very important, to have plan, otherwise this can become overwhelming.
4. Tell a story… and ask for help.
Create a compelling name, description and an image as part of your project to help you stand out. A video is critical, too. You have to tell a story, and don’t hesitate to ask for help, keep in mind that this is the main reason why you are here.
5. Have compelling rewards.
No matter how good your project is, most people want to know that you’ve got a plan that will get you there. You have to make people trust you, and believe in your project. You need to have a strong explanation of how exactly you’ll be using their money and keep all costs transparent. This will build trust in you and credibility in your project.
6. Be ready to work.
Crowdfunding does not equal free or easy money. Getting your project funded is very hard work and require a go-getter attitude. Before starting a crowdfunding campaign, it is very important to understand that is hard work and time consuming. Nobody is giving money away, crowdfunding is about people trusting in you and/or your project. You have to convince people that you are going to passionately work for your goal, then you are going to get the help you need.
7. If you are not ready to ask your friends and family for their support, then crowdfunding is not for you.
Most crowdfunding campaigns reach 90% of their goal in the first week or less. The first days of your campaign are the most important period, and it’s impossible to be succesful, if you don’t convince your first line of help.