Crowdfunding is continually growing and evolving, seeing a rise of new strategies and concepts occasionally. For people who are not familiar with the concept, getting to understand can be quite daunting at first owing to the tons of information available out there. Those who feel they are ready to harness its opportunities also need some guidance to get it right the first time.
Here is a detailed and simple guide to everything you need to know about crowdfunding campaigns to enable you develop a smart approach to yours.
• A short professional presentation video
People have diverse tastes and preferences and while some do not mind a good read, some easily lose attention and prefer short, engaging, and creative presentation videos. As such, making a short presentation video of your campaign, ambition, achievements, and current status, among other things, should be the first thing to do.
To achieve a good first impression, incorporate creativity, professionalism, and some passion into the video – this will make it captivating and engaging, prompting viewers to share it with others and spread the word.
• Marketing collateral
No one is willing to contribute, let alone invest blindly without knowing whether his/her efforts will make a positive impact. As such, you need to market your collateral to convince potential funders and investors that your company can indeed achieve its vision.
Here, you should portray all of the company’s aspects including its brand and logo, the management and staff, your products and services, your current achievements, and honest testimonials from satisfied customers who can attest that your products and services indeed beat the others and have a potential for growth.
• Your company’s current valuation
Although there is always a prospect of achieving what may seem impossible, funders and investors tend to demand hard evidence that your company is legit and has the will to grow. Among other things, this is measured by the current performance and value of your company, which is considered a reflection of your efforts thus far and a show of how far you are willing to go.
This makes it necessary to measure your company’s current valuation – your interest in the company and ultimately its capital, assets, and everything it has achieved thus far.
A reward based campaign increases the chances of funding as people are enticed and motivated by the underlying rewards. However, this depends on just how appealing the rewards are and their price, among other things.
As such, consider what you will give away as a reward and ensure that it is useful to everyone, men and women of all ages. Additionally, ensure that it is affordable to avoid coming off as a reap-off – try not to go above $20 to make sure everyone is capable of making a contribution without feeling a loss.
• Email and social media networking
Social media platforms such as Facebook and Twitter make it incredibly easy to connect and communicate without limitations. For you, these platforms offer an opportunity to engage potential investors and funders directly without spending too much money or effort. Emailing, on the other hand, is the ideal way to inform investors all about your project in a professional manner.
Combined, these platforms offer the ideal opportunity for you to make a soft-launch of your crowdfunding campaign before the official launch. They allow you to track down and contact individual potential investors, funders, and loyal customers who may be willing to contribute to your company’s development.
Make sure you set up professional and appealing pages to captivate your targets and sell them on the campaign. Do this sometime before you make the official launch to give your campaign some momentum and motivate other funders and investors to join the effort. Consider hiring an agency that can help you with your crowdfund marketing on Facebook and Twitter.
This is the goal of your crowdfunding campaign and the most important factor for funders and investors to consider. You need to make a tangible and reliable plan for how you will use their money to convince them that their contribution will not be for naught – this is especially important when the funders expect an ROI.
Additionally, show them what you have achieved with prior funding and just how well you have grown your company’s capital. As such, be sure to outline all prior funding, utilization of the funds, achievements, and the profits made thus far. If your performance is good, you will gain some credibility and make it easier for funders and investors to trust you with their money.
At the end of the day, make sure that you account for every dollar to avoid looking incompetent.
External crowdfunding resources
Managing a crowdfunding campaign can be quite stressful, what with all the factors to consider and things to do. Fortunately, there are numerous external crowdfunding tools, which ease the process and improve its appeal and consequently increasing the chances of funding. Third party promotional services are also a great way to gain an edge. Focus on your project while a professional crowdfund promotion service can do the heavy lifting for you.
• Rewards pricing tool – this is a calculator that helps you to determine the ideal price for your rewards while also monitoring expenses
• Teespring – this tool allows you to design and sell custom t-shirts to your backers
• WePay – this is a payment platform for small business and platforms they work with
• Pixir – an online image editing tool that offers most of Adobe Photoshop’s basic features for free
• Shipping rates reference – a tool that allows you to make quick references for domestic and international shipping rates
• Dilution tool – this is a handy tool that evaluates the impacts of your crowdfunding events on you and your investors over time
• Google images – it allows you to get free and paid imagery to add color to your campaign. Other platforms you can use include Pinterest, iStockphoto, and Shutterstock.
• Equity valuation tool – this is the ideal tool for determining your company valuation before and after funding
• Bitly – this tool provides you with short and simple links that have a click-count capability, allowing you to measure the spread of your campaign
• Crowdfunding PR services and social media marketing agencies who specialize in crowdfunding.
These crowdfunding tools and resources will go a long way in boosting your visibility and complementing your pitch and other basic crowdfunding features, ultimately boosting your chances of success.