Secrets of Running a Successful Crowdfunding Campaign
How to get the funds needed to launch your new idea
All great businesses started with an idea. What you have in your mind right now could be very unique and very different. However, implementation of these ideas is what differentiates the successful business owners from the unsuccessful. When it comes to business ideas, an aspiring entrepreneur really needs to lay out a proper pathway for how to accomplish them.
Due to the Internet, as well as technology, there are so many ways entrepreneurs can make their ideas a reality.
One of them is crowdfunding. This is a method whereby you outsource for funding from interested people so as to raise capital, after which the backers will be the first beneficiaries of your product.
What makes this method an efficient one is the fact that it enables you to kickstart your business without looking for capital all by yourself. As simple as it may seem, it does not work out for everyone. This means that you need to have an effective strategy to raise funds. Here is a quick breakdown of seven ways to run a successful crowdfunding campaign.
Have a Deadline for Your Campaign
According to the crowdfunding website Kickstarter and other crowdfunding platforms, a longer campaign timeline does not mean that the product you are launching will have a higher success rate. This means that there you need to set a deadline for your campaign. A timeline of between one and sixty days is recommended.
This is a true reflection of your campaign's seriousness and goals. In fact, having a deadline of 30 days is better since it has shown a higher success rate.
The shorter the timeline, the more confidence and motivation it gives for backers to join the party. Have a well laid out plan on how you're going to put your investment to work and make it known to everyone in your circle.
Make sure that you include your target alongside the time for meeting the target.
Have a Proper Budget and Post it on Your Campaign Page
Having a proper budget for your crowdfunding campaign shows that you have done effective and reliable homework. It shows how serious you are about the implementation of your business idea. The budget should not be too detailed but it should not be too shallow either. What we are emphasizing here is that your budget should be able to tell a prospective investor about your project at a glance.
When preparing your budget, it is also advisable to think about the cost of offering your rewards to backers. You need to manage all the costs. On the same note, if you are going to use a crowdfunding platform, you should be ready to pay a certain percentage of the total funds raised. Thus, having a proper budget is an essential tool for a crowdfunding campaign to be successful.
Offer Lots of Affordable Rewards
According to crowdfunding platforms, running a prosperous campaign requires you to offer as many affordable perks as possible. The most popular pledge for these campaigns is $25. This means that if you want the most potential backers, these affordable perks should not run out of stock too fast.
The rewards offered to your backers should also be encouraging. For instance, make them the top priority when the first product from your company comes out. This will encourage someone to invest their money in supporting your project.
Contact The People You Know Before The Actual Launch
Sometimes luck plays a big role when it comes to running and having a successful campaign. Some projects only take a few hours to reach their goals after hitting the internet. However, these are exceptional. Many crowdfunding successes will come from the people you know. You should never fear approaching your relatives, friends, and colleagues for support. The support you get from them should help you meet at least 20% of your financial goals.
Kickstarter says, projects that manage to hit at least 20% of their goals end up being successful.
Thus, if you can get it from people close to you, your promotion would already be successful even before posting it online.
Maintain Social Media Presence
One of the key areas that you need when running a crowdfunding campaign is social media. Pushing your product on facebook, twitter and instagram will make you command attention among everyone you are friends with and anyone who follows you. This will allow you to have a ready market before your product is available in the marketplace.
Use your social media pages to update backers on how far the campaign has gone and how far you are from achieving your set target. Also, update all the backers about the rewards, reply to comments and suggestions, and try to persuade potential backers that they should support your product. In your posts, talk about your product and the rewards backers will get after funding you.
Create a Website
Most prospective backers would want to know about your company as well as the product you are launching and the best way to do this is by setting up a website. The site will make them believe that you are genuine. Your site should have clear photos of your product to create a good first impression for prospective buyers.
Your website should also have a well-edited crowdfunding video. The video should be well-scripted, short and to the point. Look for a qualified video editor who can do it for you at an affordable rate.
Follow Up Individually
If you want to fully achieve your target, you need to follow up with your backers. You need to identify the different prospective backers and try to link up with them so they can invest in your business idea. This is a good way to attract funds and make your campaign a successful one.
Highlight very specific things that you think different individuals might like, especially the rewards, and promise that all their demands will be met on time.