Crowdfunding has helped companies and people raise millions of dollars. It’s now more than 3% of all business funding. It’s pretty amazing when you think that it didn’t exist hardly 10 years ago. If you are going to crowdfund something you need to know the basics. I put together 10 essentials you need to know if you are going to start a crowdfunding campaign.
1. Set a smart goal
Look at other crowdfunding campaigns that are similar to yours and see what they were able to get.The rule generally is to be less than 100k to seem more obtainable to the funders.
2. Use a popular crowdfunding site like Fundable, Kick Starter, or Indiegogo.
Your funders will feel more comfortable giving money through a site they have heard of or is very well known.
3.Pitch it like it’s the sale of your life.
The pitch is everything, keep it short, concise, and gripping. If there is no emotional connection it might not ever get off the ground.
4.Be ready for questions
If you have a new technology or idea your funders will want to know more about it. Things like your short and long term goals, trademarks, copyrights, patents, and how the money will be spent gets asked a lot. Make sure you respond quickly to any questions.
5. Don’t be afraid to ask your customers to join into the crowdfunding
It’s o.k. to ask your customers to join into the crowdfunding, they signed up because they like you and are likely to want to see you do even better.
6. Show off any stats
Crowdfunders like to see that you are already successful to some extent. Show off any fan likes, pre-orders, and publicity you have received.
7. Promote your Crowdfunding page
Make sure and link your crowdfunding page on as many social networks as you can post too. Social networking is a great way to get funders over to support you. In fact some campaigns that have raised millions said it was all through social media.
8. Offer perks for your investors
Funders like perks, especially unique things. If you are a musician have a signed CD available, if you are a business then have the product in a unique way, something just for the investors. Adding different level perks is a smart way to get people to donate more.
9. Try to get the press involved
If you are lucky enough to get the press to pick your story up, you will see a heavy increase in popularity and funders. Make a press release and pitch it to every major publicity you can. It’s worth hiring someone that can make a professional gripping story. Also try from some Hollywood love, several funders have ended up on the news and talk shows to promote and explain what they are doing.
10. Get personal.
If someone pledges money or helps you spread the word make sure and thank them personally. Not only is it kind, but it can lead them to spread the word even more for you.