Want to succeed at crowdfunding? Check these 11 fundamentals off your list. Do you have a strong concept, team, crowd, and story? Are you prepared to put in the time and effort required for success? Read on to learn more.
Thank you for reading this post, don't forget to subscribe!- Do you have a great… cause, product, service, prototype, or idea? This is a time not to drink the cool aid. Is there really something here? Is this a cause people care about? Does your product, service, prototype, or idea meet a meaningful need or problem? Does it do it better than other products out there?
- Are you passionate about that need or problem? Backers care more that you care about the issue, problem, or need more than your solution. This might seem odd. You might think you want people to be excited about your solution, but in reality, your passion for the problem will connect you with your backers. Also, as you refine your offering, if you focus on meeting the need, you will develop the best solution for everyone.
- We know you care about the need or problem, but who else does? You need to check that other people share your passion; otherwise, it’s just a hobby, and there won’t be enough backers out there for your campaign. For businesses, backers want to know that the market size is big and growing rapidly so that your future growth is assured.
- Do you have a team? According to Indiegogo, working in a team makes the success of your crowdfunding campaign three times more likely. There is a lot to do in running a campaign, and it is much easier being able to share the tasks. It also means everything gets done, not just what you have time to do. You also get to discuss as a team and make better decisions.
- Why do backers look for a team? Backers want to know you can deliver. If you are raising for a cause, can you make the difference you are raising funds for? If you are a business, can you deliver the product or service you propose or support the growth potential? Absolutely, your use of proceeds might include building your team out further. For early-stage businesses, backers often back the team more than anything else.
- How else can your team help your success? A third of the raise will typically come from people you know, a third from the people they know and a third from your other campaign activity. Note don’t expect anything from the platform. By having a team, you will have a larger network of people you are connected to who might believe in your campaign.
- Do you have a crowd? There’s a clue in the name; you need a crowd. Not everyone who visits your campaign will back it. You will need about 60 people to visit your page to get one backer. You need to have your crowd ready and excited to fund your campaign BEFORE you launch your campaign.
- Can you build your crowd? There are three ways to grow a crowd. You can build a crowd, buy a crowd, or borrow a crowd.
- Build is organic growth. This takes time and is usually built on quality content.
- Buy a crowd. The industry standard is investing 10% of what you want to raise to promote your campaign. If you need to buy a crowd, it can be more. Many large Kickstarter-type campaigns have spent $100k-$300k, as the companies see crowdfunding as an effective marketing tool.
- Borrow a crowd. Is there a parallel industry or cause where both the third party and their crowd would benefit from the campaign?
- Can you do what you say you can do, and can you prove it? Ensure you have a clear plan to deliver what you raise money for. Just like the team, people want to know how you can deliver. But they also want to see the proof points. Have you done this before? What traction have you got to date? What research do you have?
- Do you have time? Crowdfunding is not quick, and it’s not cheap. But it is very rewarding. Not only can you get the cash you need, but in the case of causes, it better meets the transactional needs of the new generation of donors. It can validate your business and give you a group of advocates who will support your business in the future.You should plan a 90-day preparation and 30-45 days to run your campaign. Of course, if your cause is time-sensitive, you would need to get it up quicker than that. If you can spend more time preparing to know that you will hit 11% of your goal on day one and 33% in the first week, you have a much higher chance of hitting your goal.
- Can you tell your story? This is probably the most important. You need to be able to share your passion and clearly communicate and engage with your target backers so that they will back you.
Running a successful crowdfunding campaign requires careful planning, hard work, and dedication. Ensure that your cause, product, service, prototype, or idea meets a meaningful need or problem and that you are passionate about it. Validate that there is a market for it, build a team, and have a crowd ready before you launch. Be clear about what you can deliver, have a clear plan and proof points, and take the time you need to prepare. And finally, tell your story passionately and engage your target backers to create a connection with them.
With these fundamentals in place, you’ll be well on your way to a successful crowdfunding campaign that achieves your goals and brings your vision to life.
