How to Launch A Successful Crowdfunding Campaign
In this guest post Bharathidasan Moorthi of ZingoHub sets out the key steps to run a successful rewards crowdfunding campaign
Crowdfunding is described as, “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet”.
In simple words, crowdfunding is the method of raising money for your idea and project by launching it on crowdfunding websites.
Crowdfunding is predicted to be one of the biggest financial changes in history. Commentators are of the opinion that it will revolutionize the way money is exchanged in the world.
The crowdfunding model is fueled by three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organisation (the “platform”) that brings the parties together to launch the idea.
Because The Crowdfunding Revolution is Here to Stay!
The power of the crowd is massive. The fundraising industry has democratized financial lending. And this is why innovators and creators have welcomed crowdfunding platforms with open arms. Since its inception, crowdfunding has witnessed rapid emergence and adoption. And so, innovation has progressed beyond reliance on a few investors’ hands, VC’s or Angel Investors.
The Crowdfunding Centre’s Report identified two primary types of crowdfunding- equity crowdfunding and rewards based crowdfunding. In equity based crowdfunding, the backer receives a share of the company in exchange of the money pledged. One of the main disadvantages are the restrictive policies exerted by governments, especially on digital equity crowdfunding.
Crowdfunding, specifically rewards-based crowdfunding, includes raising funds from the crowd or ‘backers’ in return of rewards, rather than an equity stake in the company. It has helped creators and innovators including musicians, artists, designers as well as tech enthusiasts to bring their project to life. Rewards based crowdfunding is one of the most feasible options to raise funds to become leading entrepreneurs.
“Crowdfunding empowers the next generation of creators & innovators and democratizes commerce as a whole. It will create the next Nikes, the next Rihanna’s, and the next Spielbergs”, remarks Haider Aly-Reza, co-founder of ZingoHub.
How to Launch a Successful Campaign
Whether you are an artist, musician, filmmaker, or a designer- crowdfunding is a great way to launch your project and show your talent to the world. You would also gain a lot of audience for your work which can take your projects to new heights.
You have a business plan and want to take it to the next level. With crowdfunding, you can raise funds for your startup. Share your revolutionary idea with your target market and test it out.
Your campaign page is your space to communicate with your community. An opportunity to make a connect and to show that you will do what it takes to make this project happen because of what it means to you.
To make sure that your message gets across let us cover the basic 3Ws:
Who are you?
Introduce yourself to the community, the people involved in the project (if any), your previous work if it’s relevant to your current project.
What is your idea?
Don’t spare any details, find interesting ways to put your project across and grab the attention of the backers.
Why is it so important?
Talk about how you came up with the concept, share your inspiration, maybe it will inspire the backers too!
Realistic Pre-Launch Goals:
The goal amount you set should be the minimum viable amount that you need to make your project happen and send out rewards that you have promised.
While you might have an idea of the budget for your project, but if you haven’t launched a campaign before, rewards is not an obvious cost to consider. Arranging and sending out rewards may add to your current budget.
Set the realistic number of backers as more of them will be from your own network. Account for all of these people and assess, how many people can you get on board for your project.
The ideal campaign duration is anywhere between 30 to 45 days. It will give you ample time to get the word out and connect with your community for support.
Your crowdfunding pitch video is crucial to the success of your campaign. If you need backers, you need to make a killer pitch video. As simple as that!
The reward level is unique to you. Price it wise and keep it interesting! Follow the reward level checklist to attract more backers.
Promoting Your Campaign
For any project to be a success, it should be promoted well. Have an outreach strategy to reach out to like-minded supporters across the globe.
Once your campaign is Live, announce it to your friends, family and your own network. Social media is the best tool to connect and promote your campaign with the community. Consistent updates about your campaign needs to be put up consistently, and shared across Facebook, Twitter, instagram, LinkedIn, Google+, Pinterest etc.
Public Relations can do a world of good to your campaign if you get covered by a relevant publication. To get a perfect feature you need to have your pitch ready and polished. Think of a common ground between you and the publication, this will help you connect with the publications and their audience.
Successful campaigns can continue to receive exposure on their crowdfunding platforms. Indiegogo InDemand is one such feature for those who have hit their campaign goal. They can continue to grow their community and reach new audiences. Another option is setting up an ecommerce store. One such example is ZingoHub that provides a space for creators and innovators to sell your amazing products to the community.
Crowdfunding is taking on the alternate funding industry by storm. With the rising competition for capital resources and investment, crowdfunding is the go-to platform for startups that need to raise funds.