For the past few years, the concept of crowdfunding has become very popular. Having people fund a project online has had countless success stories, with some projects receiving more than 200% of the monetary goal. There are a few different crowdfunding websites you can use to have people fund your idea or project. Kickstarter.com says that 44% of the projects on it are fully-funded. To make sure you create a successful crowdfunding campaign, here are a few tips.
- Reward your investors.
People like to have incentives when they invest, and using rewards is a great incentive to entice potential investors. Using a whiteboard, jot down the increments that you would like to have for rewards. Some of the most popular crowdfunding campaigns will have rewards at as little as $1 or $5 with something simple like a thank-you letter. As you move up the monetary ladder, have the rewards become more elaborate like t-shirts, memorabilia, a behind the scenes look at how your idea or project is made, and more.
- Become a storyteller.
You could have the most innovative, passionate, or exciting idea, but if you can’t tell the world why they should back you, you’re going to have a hard time. Potential investors will want to see not only what your idea is, but also see concrete evidence on why it matters and why it will succeed. This is where photos and videos come into play. Without sounding desperate, tell the world about how you came up with your idea, where the money is going to go, and how this will better the lives of many people. Give as much detail as possible to make your investors believe in your idea as much as you do.
- Don’t be greedy!
If you go onto a few crowdfunding websites, look at the campaigns that have failed. One of the reasons these fail is because the campaign is asking for too much money without justification. Figure out the costs of every aspect of your project, don’t just ballpark a number. Set the amount you want lower than what you expect you will get. This way, if you obtain that lower amount, you can keep that amount. Some websites don’t allow you to keep any of the investments pledged if the goal you set isn’t reached.
- Do your research.
Even if you think your idea is totally original, look up similar projects on crowdfunding websites. Look at how they laid out their pages, what their rewards are, and how they explain themselves. Chances are, there will be similarities you can use. See what worked and what failed. Once you do this, you can tailor your campaign and tap into the existing audience that others with related ideas have already created.
Crowdfunding can be a great way to get the dollars necessary to launch any idea or project that you have – turning your dreams into reality. If you have used crowdfunding, what tips can you give fellow readers who are just starting out?
Anthony Fongaro, Quartet Blog Author & Editor