Many startups turn to crowdfunding as a potential means of securing funding. Not only do crowdfunding campaigns provide a visualisation of potential customers, but they can also help you gauge the interest of your target audience so you can adapt accordingly. All of this information can even give you more merit when approaching larger investors.
However, a phenomenal idea doesn’t guarantee crowdfunding results, the ability to market and sell your idea is what will secure the funding. Here are some tried and tested tips that can bring you closer to a successful crowdfunding campaign.
- Don’t jump the gun.
Timing is everything. The peak moment for you to seek crowdfunding largely depends on what stage your company is in. While there is never a ‘perfect time’, it’s imperative that you have a well-developed model or plan to present to the masses. Presenting a half-baked will not only deter potential backers, but the lack of planning may also come back to haunt you further along with the project development. Crowdfunding campaigns shouldn’t be seen as a shortcut, it’s best used for ideas that are already well-developed, ideas that can inspire people to place their faith in your product or service. - Have a sustainable plan.
A crowdfunding campaign has three key phases: the launch, maintenance, and the final push. Most campaigns have funds start pouring in right after launch, but when the hype dwindles, so will the funds and momentum. That’s why it’s vital to have a proper plan for all three phases. Don’t play all your cards at once, keep some promotional ideas or interesting content. This way, the campaign will seem to be growing steadily and not stalling out, which will keep backers coming. Plan for a steady stream of content, updates, perks, and opportunities to keep the momentum going through the tough maintenance phase before reaching the final push. - Be concise!
You have to convince backers to fund your project in as little time as possible, in other words: create the largest impact with the least words. The best way to do this is by writing your pitch, trimming it, then trimming it even more. Get to the point quickly, your audience should be able to determine the value and main selling point in no more than 90 seconds of reading. Within this time, it is also important to diminish any doubts they may have, which brings us to the next point. - Build trust with testimonials
People often trust referrals. Whether it’s a recommendation from a friend, an endorsement by a celebrity, or an online review, evidence of reliability in any form helps ease the fear associated with trying new products or experiences. Reference press releases regarding your campaign and gather support from respected figures, as all of these will serve as testimonials that will build a sense of confidence in your idea.