If you’ve opened the news lately, chances are you’ve seen at least a story or two about crowdfunding. Over the past few years, it’s become an increasingly popular way to raise money for all kinds of projects including films, products, charities, even walls (but let’s not get into that).
The idea behind crowdfunding is simple: raise funds for your project or a project you want to support by creating an online campaign that asks people to donate money (usually in small amounts) to fulfill a predetermined financial goal. With sites like Kickstarter, GoFundMe and Indiegogo, crowdfunding makes receiving funding accessible, even to the so-called little guys.
Crowdfunding Campaign Key Elements
In this day and age where everyone and their neighbour is crowdfunding for one project or another, the question becomes: how do you stand out? how do you get the attention, online visibility and how to attract the right people to become interested in your project idea? Let’s take a look at three basic key elements to a successful crowdfunding campaign launch:
Key #1: Have a Plan
Sure, anyone can start a crowdfunding project, but it’s important to remember that not every campaign is successful. In fact, according to Statista, as of January 2, 2019, the success rate of fully funding a project on the Kickstarter was 36.63 per cent. In order to set your crowdfunding campaign up for success, you’ll need to start with a solid plan.
Key #2: Perfect Your Pitch
In its essence, your crowdfunding campaign is no different than a pitch to investors. It needs to be clear, it needs to be well presented, and it needs to give your audience a reason to want to invest. One option that you should strongly consider for your pitch is a video. Why? Well, just think about it. At the end of the day what you want to get across to your audience is a compelling story that includes WHAT, WHY and WHAT’S IN IT FOR THEM. A video can help you achieve this story in a manner that is both exciting and engaging. It becomes not just a “sell” but an “experience”. The proof is even in the numbers, as Hubspot has reported that after watching a video, 64 per cent of users are more likely to buy a product online.
Key #3: Find Backers
The biggest advantage to a crowdfunding campaign is the number of potential investors. However, that’s not to say that every person on the Internet will automatically see your pitch. In order to drive traffic to your campaign, you need to create buzz; and in order to create buzz, you need to tap into as many channels of advertising as you can. Social media is a great tool to use both organically and paid; however, to bring your campaign to the next level you’ll need an even more in-depth plan. To reach the most backers possible you may want to include other avenues such as email marketing, press releases, even reaching out to influencers such as bloggers, journalists and anyone with access to media outlets. If you’re kicking off a new crowdfunding project, hopefully these key tips will help you unlock success! Of course, if you need help planning or implementing at any point along the way, the door to a kick-ass strategy is right here.