Crowdfunding is becoming all the rage for people who want to raise funds to support their projects. It’s important that when you are working on a campaign that you adhere to best practices in crowdfunding for your project, in order to maximize the potential of meeting your goal.
Who is going to want to invest in your product? This is important to identify from the beginning. It will help form your whole campaign. You want to reach out to those who are going to benefit most from the product you are promoting to be funded.
You’re going to have some to start off with, whether they’re friends, family, or social acquaintances. You want to make sure you have your first investors lined up upon launch. If possible, have them write some testimonials for you if they can.
Another one of the best practices in crowdfunding is ensuring that if you have any people who are working on the project with you, that they help out with your campaign. Make sure they are involved in every way possible including having them extend invitations to everyone they know who will be interested in the project as well.
When setting an amount for your funds, you want to be realistic. You need to account for all the parts, labor, special equipment costs, and any other important financial output you might require to build your project.
5. Be yourself
Let your audience see you. There’s no need to put on a show. If you’re passionate about what you are creating, then it’s going to show through your campaign.
This is possibly one of the most important best practices in crowdfunding for any campaign. Your audience wants to see what you’re creating. They want to know the details of how it’s built. So put up pictures of the final product and most importantly create a video. With a video (or two), you can walk your audience through the process of your project. You can tell them how it’s made, how it works, why you’re so passionate about the project, and the story behind it. It’s been statistically proven that campaigns with videos perform better than those without. Take the extra time and develop a video that you’re really proud of.
7. Social Media
Don’t overlook the power of social media! Crowdfunding is in itself a social endeavor, utilize other social media networks to get the word out while staying personable. Get connected with sites like Twitter,Facebook, Google Plus, and LinkedIn. Create an account on each so that people who are interested can follow your updates through there as well as the site your project is on.
8. Be active
I can’t express this enough. If you’re asking for people to fund your idea, they will want to see that you are actively participating. Send your updates via social networks, your website, and the crowdfunding project site as well. Answer questions and comments when you can, let your audience know you’re listening.
Before you launch, make sure you have various levels of contribution for investors to view. Some people may love your idea, but may only have $10 to contribute. You may only be able to provide them with a thank you, but those who want to donate should be able to, even if it’s a small amount. The higher the investment, the more your investors receive. Also, many successful campaigns have early supporter discount packages that are only offered on a limited basis. Take advantage of a tiered donation platform and offer as much back to the contributors as you can.
10. Keep your chin up!
Sometimes, despite all of our best efforts, we don’t reach the intended goal we set out to reach. That’s okay. What makes all the difference is that you brush yourself off and try again. Some crowdfunding platforms like Indiegogo have flexible funding options that allows you to keep any amount raised.
You don’t have to have important connections to create a successful crowdfunding campaign. If you browse any of the crowdfunding sites, you will see that the most successful campaigns are using best practices in crowdfunding — there’s a reason for that.