So you’ve got an idea, and you want some help with launching it. Have you considered using crowd funding to help you launch? There are many crowd funding sites like Kick Starter and Indigogo, but how useful are they?
Crowdsourcing strategically pushes your product or project idea directly into the hands of your potential customers to gain invaluable feedback. Unlike traditional market research, on platforms like Kickstarter and Indiegogo, this feedback takes a tangible and immediate form: financial backing. When individuals choose to pledge money or pre-purchase your offering, they’re not just providing an opinion; they’re making a concrete statement of interest and validation. This financial commitment acts as a powerful indicator of market demand, allowing creators to gauge viability, refine their product, and build an early community of enthusiastic supporters.
A Kickstarter campaign operates on an all-or-nothing funding model. You set a specific goal and a deadline for your campaign. Then create campaign page showcasing your idea with videos, images, and descriptions, offering rewards to backers who pledge to back your idea. If your project reaches its funding goal by the deadline, you receive the pledged funds. If the goal isn’t met, no one is charged, and your project doesn’t receive any money. This model minimizes risk for backers and can generate the funds to bring your idea to life.
You are not guaranteed to win your campaign, in fact only 22 – 40% of campaign reach their target. Due to the all or nothing approach, those campaigns who fail to reach their targets do not get any funding even if people have backed it. That said you don’t walk away empty handed; you do gain valuable marketing data about your customers.
Here’s our top tips to help you hit that funding goal.
Get everything in place before you start. You need to come across as professional and real. Remember your potential customers are taking a risk by baking your campaign. Reassure them by making sure you have your website and socials all aligned and running. Make sure your branding is on point.
Social media plays a very important role in successfully reaching your goal. Start by using your power base, whether you have 10 or 100000 followers use them to spread the word.
According to Fundable, 30% of funding is completed in the first week of a campaign. Make sure everything is in place from the start. Consider dropping teasers before the campaign goes live.
Everyone loves a story! So sell your idea through story, who, where when, don’t be afraid to dive into the details. Use a video, if a picture paints a thousand words a video gives you the full HD experience!
Shorter campaigns are more successful. Don’t be tempted to run a long campaign, if it’s not reached the goal in 6 weeks, I’m afraid it’s not going to!
Remember your customers. They are talking a risk by baking your idea. Reward them for this risk by setting promotions which reflect this.
Want to maximize your crowdfunding success? Discover how we can help.
