Crowd funding, as its name implies, is a funding method by which a large group of people make individual monetary donations to invest in a cause, business model or project they wish to see successful. In recent years, crowdfunding sites like GoFundMe, KickStarter and IndieGoGo have helped to catapult the popular donation-based business model. As of April 2015, the number of launched projects on Kickstarter amounted to 222,533, with a success rate of 38.46 percent.
Whether you are a fan of crowdfunding projects or not, there’s a good chance you’ve seen a handful of products that were the result of one. Artists, humanitarians, entrepreneurs, engineers, and more have found large success from crowdfunding. But, how? What is it that makes a collection of people want to invest in your idea? Fortunately for you, we know the answer to that question.
Everything you need to know to get funded:
1. Develop Your Story
You’d be surprised by what people are willing to invest in with the right messaging behind it. We’ve watched a number of- lets just say, less than impressive projects get funded just because they had a compelling story or humorous messaging. We’ve even funded some ourselves. These projects reiterated the importance of good messaging, with fun videos and an enthusiastic personality you can even get potato salad funded …
2. Produce a Great Video
Once you’ve nailed down the messaging of your product, the second most important thing is creating an impressive video to go along with it. Videos give visitors a better idea of the project, the people behind it and why it’s important. An amateur video just isn’t going to cut it anymore. Your video is your pitch, so make it a good one. Think of your video pitch as a mini commercial, create an experience, tell a story and convey your key messages clearly.
3. Create a Marketing Plan
Just because you are on the crowdfunding platform doesn’t necessarily mean you’ll get noticed. Make sure you have a plan in place before and after you launch your crowdfunding campaign. If you are below your goal how are you going to entice people to invest more? If you aren’t getting the intended response, what is your plan? If you are funded well over what you anticipated, will you be able to meet demand? Make a list of “what if” scenarios and work these into your marketing plan.
4. Communicate Often
Whether you’ve reached your monetary goals or not, communicate with your audience! The work isn’t over just because you’ve put your project out there. Matter of fact it’s just the opposite, the real work begins after the campaign has ended to ensure everyone gets what they’ve been promised. To keep your backers and potential backers interested it is important to keep them in the loop. People want to invest in you, they want to see their donation thrive, its up to you to prove to them that what they’ve invested in is worth it.
Lastly, I leave you with this … a glimpse into some projects we’ve funded!