It sounds easy enough. Come up with a dynamite product, turn to crowdfunding, offer rewards to donors, then sit back while the money rolls in. In reality, there’s no sitting back when you have a product to promote, because while crowdfunding services have galvanized the investment arena, you, the entrepreneur, need to attract your backers. The success of Kickstarter, which since its start in 2009 has brought in more than $1 billion in pledges, and IndieGoGo isn’t enough.
But the right success strategies can launch a campaign that invigorates your crowdfunding efforts. Planning and goal setting are key parts of the process. In this article on crowdfunding success strategies, Eyal Bujvaj, Marketing Director of Best-Crowdfunding-Websites.com outlines an eight-step plan that will help you.
What’s your Plan?
According to the University of California, Berkeley’s Program for Innovation in Entrepreneurial and Social Finance, you’ll need to invest a minimum of 200 hours of preparation for your crowdfunding efforts, and an average of 136 hours of managing the campaign, in order to successfully raise $100,000.
It Takes a Community
Don’t wait to seek out prospective backers after your campaign goes live; Richard Swart, director of Berkeley’s Program for Innovation in Entrepreneurial and Social Finance, says that the initial 30 percent of funding needs to be committed before the campaign opens online. Build relationships with potential supporters who will spread your message via social media.
People Fund People
That’s the mantra of IndieGoGo’s co-funder Denise Ringelman, and the evidence bears it out. When the Jiva Cubes line of instant coffee filed to reach its $15,000 goal, its founder, Natalia Rodriguez realized that her campaign wasn’t compelling. So she went back to the starting gate, created a new video, and presented in-depth product demos along with perks that gave backers more opportunities to sample the product. The results ? More than $21,000 in donations.
Your Backers Have Your Back. . .Do They Have Your Ears?
Backers don’t just give money; they also give input. That’s the evidence provided by Dan Marom, co-author of The Crowdfunding Revolution. Listening to what they say about your product will tell you what you need to know about its potential.
Reality Orientation Funding
Goal setting should be attainable. When you realize that less than half of Kickstarter campaigns reach or exceed their goals, it’s easy to understand why you need to be practical. Reaching a funding goal, says the voice of experience Ringelmann, makes backers want to get on board.
Online isn’t Everything
Crowdfunding may seem like it’s located in the merry old land of Oz, but a successful campaign needs to have grounding in Kansas-style reality. You can host launch parties, hold discussions with industry leaders, and take part in community events that help you connect with potential customers while building support for your campaign.
Follow up on Your Follow-through
If you’re planning a crowdfunding campaign to promote your crowdfunding campaign, the backers in Oz are indeed going to pay attention to the man–or woman–behind the curtain. They want to know what’s going on behind the scenes. According to Indiegogo, campaigns that issue at least three updates raised 239 percent more in funds than campaigns that send out fewer updates.
If at First You do Succeed, Try, Try Again
Business is 24/7. The average Kickstarter goal is $15,000, so embarking on a series of campaigns is more sensible than putting all your crowdfunding eggs in a single funding basket. Repeat campaigns build customer loyalty, and create a customer base.
Eyal Bujvaj is Marketing Director at Best Crowdfunding Websites, the most trusted source for news and Information about the Crowdfunding Industry. His Portal provides a deep analysis of rewards-based crowdfunding platforms, equity-based crowdfunding sites and peer-to-peer lending sites.