If you're looking to get funding for your business idea, then there's no longer the need to search for private investors. Today's world has brought a new concept to light – a concept that has become a game-changer. Crowdfunding is a popular way for new businesses to raise their startup capital or for established companies to roll out new products. You only need to set up a successful Crowdfunding campaign. Here are the steps to setting up a winning campaign.
Step 1: Share your Story
Stories are powerful. People don't spend money based on logic – they spend based on emotion and then come up with a logical excuse. There is no more of a powerful tool for tapping into the emotions of your market than sharing your story. Describe what you're planning, where the idea came from, and why you're so passionate about it.
Not only does a story prove that you've put some thought into your idea, but it also taps into the emotions of your audience. You'll also need a creative banner and image that showcases your story visually.
Step 2: Offer Amazing Rewards
People might get emotional when they hear a compelling story, but they are unlikely to open their wallets unless they are getting something out of it. That's where rewards come into play. Come up with a list of rewards based on the investment made by each person, and be absolutely sure that you fulfill them! Keep in mind that delivery of rewards does cost money, so you want it to cost substantially less than the pledge amount.
Step 3: Set Funding Goals
Depending on the platform you choose to launch your campaign from, you might actually be required to set funding goals. For example, Kick-starter has an all-or-nothing model, requiring you to meet the goal you set. On the other hand, Indiegogo uses a different model where you get to keep funding regardless of whether or not the goal is met.
It's important that you sit down and plan out exactly how much money you'll need to meet your goals.
Step 4: Promote your Crowdfunding Campaign
You have a lot of options here. Here are some examples of methods that can be used to promote your campaign:
- Social media is a powerful promotional tool for spreading the message.
- Some media outlets and bloggers might be willing to provide coverage of your campaign. You will need to reach out to them.
- Consider hosting a live event to drive up interest.
Step 5: Provide Regular Updates
As the progress of your campaign moves forward, be sure that you keep your backers in the loop. If you don't share progress, then you'll probably lose a lot of them as interest fades. Most Crowdfunding platforms have amazing tools that allow you to keep your backers updated quite easily. Take advantage of these tools by showing them behind the scenes photos, progress updates, and stories about any adversity you might have faced. It's important that you be completely transparent.
Step 6: Monetize all Pain Points
The purpose of creating new products or services is to solve problems. For a Crowdfunding project to be successful, you'll need to prove to your audience that you can alleviate a pain point. If they don't believe that you can solve the problem, then they are not going to support you.
Step 7: Revise Based on Feedback
One of the most overlooked aspects of Crowdfunding is that backers can provide you with valuable feedback. Make sure that you take the time to gather feedback and make revisions accordingly. You must take this step seriously if you want to achieve long-term success. You might have an amazing product, but it can be made even better with a little extra work.
You're Not Alone!
Crowdfunding can be an overwhelming process, so it's important to remember that you're not alone. We can help you set up a successful crowdfunding campaign and more.
Source: Cate Costa.