So, you’ve decided to seek help from strangers. How can you launch a crowdfunding campaign that will get you the financing you need?
“Crowdfunding Will become the future of how most small businesses are going to be financed” – Duncan Niederauer (Former NYSE CEO)
Check out these six tips to move further along.
Know Your Target
Based on the nature of your project, who are the people who would most likely be interested in it? Identifying your audience is essential. Reason? It informs how you develop your promotional pitches and how you frame your proposal. Once you’ve listed down the audiences that are most likely to benefit from your project, note the channels and avenues through which you can reach them.
Choose Your Platform
There are various crowdfunding platforms available out there. However, one that your friend uses successfully may not be the right one for your project. You need to consider the kind of audience you have and the kind of project you’re launching.
If you’re crowdsourcing for charity, you will benefit from a platform that specializes in charitable projects. Crowdsourcing for a new invention? Narrow down your choices among platforms that cater to gadgets or new innovations. Also, decide whether to go with donation-based funding or investment-based.
Test Your Ideas and Get Feedback from Friends
Know anyone who has successfully done a crowdfunding project? Sound your proposal off these people. This will help you ensure you have a rather airtight plan.
You can also research on other projects similar to yours to cover more bases and eliminate loopholes. Also, you can test the waters by pitching the idea to the target market before embarking on the crowdsourcing campaign.
You don’t just go out there and dive the crowdfunding waters on the get go. To ensure success, you need to build a network in the right places first. You can do this by participating in activities that your target audience are likely to join. Furthermore, you can offer your services or assistance at such events.
Another alternative would be organizing a similar activity or talking about it online through an FB page or blog. Building a newsletter e-mail list is also a strategy worth using.
Make your target audience interested in your project. There are different ways of doing this.
- One is creating a compelling video that will help them understand what your cause is all about and why they should care.
- Another is sharing your story to make them know who you are and get your pulse on the matter.
Once they feel they know you and understand how you tick, your target audience are more likely to care about your project and help you out.
Set a Goal and Give Rewards
Clarify and specify your aim. That way, you and your target audience will be aware of what’s needed to make the campaign a success. Also, let them know what’s in it for them. Your reward can also act as the final push to convince them to fork out resources to you.
See to it that your reward is appealing and fair enough for your target audience. However, ensure that the pledges you make are realistic and entirely doable for you. It also helps to update your audience on what’s happening. This will get staying in the loop without getting impatient.