Crowdfunding is one of the newest ways to fund your potential business startup. It is the practice of funding a project or venture by raising money from a large number of individuals. This is alternative financing compared to traditional mediums like Banks, Venture Capitalist, or Angel investors.This is a REAL way to put your idea into motion, by raising money for your project without giving up equity and without having to pay back debt.
The crowdfunding industry has exploded over the last few years with billions of dollars being invested worldwide. The top crowdfunding online sites right now include gofundme.com, kickstarter.com, and indiegogo.com. As a result of this boom, these platforms have also become harder and harder to stand out on.
The following is a list of 5 tips to help improve your campaign and attract backers.
1) Make it personal: Always ask yourself the question, why i am doing this? The idea should be something that you are passionate about and something that you want to share with the world. You are ultimately in charge of the process and its success.
2) Tell your story: Grab attention of potential backers with the story of your project. Use videos and pictures to capture the eyes and ears of funders. Use storytelling to bring out emotions of people that relate to your project and directly impact them.
3) Use free social media and advertising: You need to extend your reach, audience and awareness. Have existing links with media content to Facebook, Twitter, Instagram, Snapchat, YouTube and company website so backers can follow your story outside of the funding page. Use media content to get people excited for the launch of your project.
4) Have a live event in middle of campaign: Continue to get people excited AND involved. Think of strategic partnerships that may add value such as local businesses, professional athletes, and talented musicians that can be part of an event during the fundraising process. Reach out to notable investors or individuals related to your project to have at the live event. Use the live event to create more media content to share your story.
5) Follow up with backers throughout the process: Getting a donation or funding is great, but have gratitude for it. The people that help create your project with you should be valued and most importantly kept informed. If a backer is promised a reward, follow through timely. As project meets goals or launches update them and continue to thank them. A backer should be considered a lifelong customer relationship.
Crowdfunding has created a unique opportunity for fundraising in today’s economy. The internet has helped drive this financial model even more, but Crowdfunding is not limited to the online arena. These tips should be considered in all areas of fundraising and in business operations.
Now is the time for you to stand out from the crowd and crowdfunding is one more tool to help you do just that.