Essential Things You Need to Do Before You Begin Crowdfunding
Launching a crowdfunding campaign can be really exciting. The promise of raising money while simultaneously building a crowd of raving fans all interested in your project is very alluring.
Crowdfunding IS the future of finance.
But, when you pull back the covers and look into the mechanics of crowdfunding, it’s important to be honest: it’s not easy. It’s not as simple as putting up a quick video, blogging a few times, sharing on Facebook and, voila! Millions of dollars start rolling in.
That doesn’t really happen.
How to Prepare for Your Crowdfunding Campaign
Successful crowdfunding campaigns are sometimes years in the making. They require good planning, solid marketing, and excellent service and execution. To succeed in crowdfunding, you’re going to want to approach the process with the same seriousness that you’d approach any other marketing campaign.
Here are the things you’re going to want to invest in and prepare before you ever click ‘Publish’ on your crowdfunding campaign.
Determine first whether crowdfunding is even right for you and your project: While crowdfunding can be an amazing tool to raise financing for your startup or project, it isn’t right for everyone. Here are questions to ask yourself to see if crowdfunding is right for you.
Choose which type of crowdfunding is right for you: While we’re used to discussing crowdfunding as a singular industry, there are actually four different types of crowdfunding and each comes with its own particular flavor of pros and cons. While they’re not mutually exclusive (you could both run a Kickstarter campaign and borrow money online via another crowdfunding platform), it makes the most sense to focus on just one type of crowdfunding.
Create a crowdfunding video: Most crowdfunding experts agree that video is perhaps the most important asset of any (and every) crowdfunding campaign. Effective crowdfunding videos explain to your backers what your crowdfunding campaign is all about and why they should participate. The best videos do that by creating an emotional pull.
Pick a title for your crowdfunding campaign: The first thing you’re prospective backers are going to see about your campaign is the title of your crowdfunding campaign. It’s what hooks them in and convinces them to continue reading on. Check out how to pick a title for your crowdfunding campaign.
Plan your crowdfunding marketing budget: As mentioned earlier in this article, very few crowdfunding campaigns (though there are exceptions) rake in millions of dollars by just getting lucky. Most successful crowdfunding campaigns were extremely well orchestrated and require spending on specific tasks (like video creation, for example). Learn how to run a successful crowdfunding campaign on a budget.
Structure a great series of rewards for your crowdfunding campaign: Getting the support of a crowd to back your crowdfunding campaign means creating some great rewards to get them engaged. It’s worthwhile really thinking through what rewards might get your audience excited and motivated to continue backing your campaign. Get started with this list of awesome crowdfunding rewards for some ideas.
Launch Your Campaign
Billions of dollars are being raised for exciting technology, social, and personal projects around the world. But do so with good planning. The better you plan out your crowdfunding campaign, the better your crowdfunding campaign should turn out.
May the (crowdfunding) force be with you!