Things to consider before starting a crowdfunding campaign
A crowdfunding campaign isn’t an easy way to get money, in fact it may even take more hard work than a traditional investment route. However, that’s not to say you shouldn’t give it a go if you’ve got the idea and the resources to implement it properly. Here are some things to consider before you take the leap.
Is it right for you?
Crowdfunding isn’t for everyone. You need the right idea and the time to spend building trust around the thing you want people to buy. Your campaign will probably start before your crowdfunding page even goes live and will continue long after it ends too. It’s not just about 30 days of pushing hard to get people to buy in.
Choose the right platform
There are a number of different platforms with the largest being Kickstarter. This all-or-nothing approach means you have to hit your goal otherwise you lose the invested money. It’s a great way to create urgency and you might be more effective at pushing what you’re doing if you know you’ll lose the money if you don’t reach that goal.
Indiegogo is another popular platform that allows you to keep the money even if a project is only partially funded. Be careful with this because while it’s an attractive prospect, if you don’t earn the money you need, you may struggle to fulfil the rewards you promised those who did part with their money.
Do you have the time to plan it?
Planning a campaign is so important because you need to get it right. You can’t just set up a campaign and watch the cash roll in, you need to meticulously plan things like social content, PR activities and the release of new rewards.
Do you have the resources to execute it successfully?
Once your campaign is up and running, you’ll need to post regular updates in order to keep people interested. In doing this, you not only keep them excited about what you’re doing but they are also more likely to share too.
You’ll also need to be posting on social media, contacting the press and answering questions from those who have crowdfunded you.
It’s so important to get the right team to handle this so don’t think you just rush in and manage it all by yourself.
How are you going to get traction for your campaign?
You need to think about what you’re going to do to promote your campaign. Perhaps you’ve already got a good blog or social following but if not, you’ll need to find ways in which to get your project out into the world. It’s always a good idea to work with influencers in your field on this because it’s their audiences that will like, share and fund your campaign.
How will you establish trust?
Before you can ask someone to give you money, you have to establish trust. The best way to do this is with great content, a well-thought-out campaign and perhaps even a video where you introduce yourself and your ideas. People trust people much more easily than they trust a faceless business.
What rewards will you offer?
It’s important to establish what kind of thing you’ll offer to your supporters. It’s obvious that you’re going to offer products/downloads/services but what about for those big givers? You’ll need to offer something special that will encourage people to give just that little bit more than they were considering. It might be an invitation to an exclusive launch party, an original prototype, or a limited edition product.
Take a look at these hacks from Indiegogo on how to get the most out of your campaign.