With the rapid rise of social media over the past decade, start-up businesses and fundraisers have made a shift to the web via crowdfunding campaigns.
Crowdfunding is the use of small amounts of money from a large group of individuals to finance a project or business venture. Websites such as Kickstarter and GoFundMe have made it easier for entrepreneurs and nonprofits to connect with a wide range of people who would be interested in donating to their causes.
The tools to build your own crowdfunding campaign are all around. Here are some tips that could help you launch a successful crowdfunding journey.
Explain the Purpose of Your Campaign Clearly
One of the most important aspects of a crowdfunding campaign is illustrating the exact reasons why you’re asking for support and what you plan to do with the funds.
Usually there is a space on the crowdfunding site dedicated to explaining your product or campaign to your audience. This should be viewed as your opportunity to pitch your potential investors on why they should support you.
There are many ways to go about explaining your product. You can use humor, entertainment or even an inspirational story, but the most important element that you will need to use is clarity. People are more likely to support a product that has a clear end goal.
Explain the Story of Your Business or Campaign
In general, people, especially people who are considering giving their hard-earned money to someone else, love to know about the start of great ideas.
A great way to convince people to support you is to tell the story of how your cause came about. You can showcase your creativity by making a video or actually writing the story out yourself.
Explaining the things that sparked you to start a business or support a cause could hit home with a potential supporter in your audience.
Test Out Your Campaign Beforehand
Are you ready for a couple of clichés?
It’s better to measure 10 times and cut once than to measure once and cut 10 times.
You never get a second chance at a first impression.
It can be beneficial to set up a trial run of your campaign before sending it out to the public.
Gather some honest people that you trust and ask them what they think about the campaign you are planning to run. Also ask for feedback on the presentation that you plan to roll out to the web.
Give Incentives to Supporters
When it comes to crowdfunding, another great way that you can increase your results is to give rewards to those who give donations.
You can set up certain gift packages, discounts on future products or exclusive content to those who show support. For example, if you are using Kickstarter to help launch a clothing company, you could incentivize potential supporters by giving them the first access to limited edition items. Or, you could release your clothing to them first before you release it to the public, giving them the feeling that they are VIPs in your company.
Give Updates on Your Progress
If you’re fortunate enough to get the support that you are seeking through a crowdfunding campaign, you owe some level of visibility to your supporters.
They’ll appreciate updates and documentation of your progress for two reasons. The first is that it shows them that their donations and support are both being used in a positive way. Secondly, it shows that you value them enough to include them in the rise of your cause or campaign.
Two great ways to showcase the progress that you are making are through a YouTube channel or through creating your own website/blog.
Utilizing these tips could make a difference in the success that you gain through crowdfunding. Crowdfunding is great because it can also serve as a gateway to establish relationships between you and potentially loyal customers.
Share your crowdfunding stories in the comment section and check out our tips to becoming a successful entrepreneur.
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