Over the years, there has been a significant change in the methods of getting funded to launch a product or execute an idea or endorse a cause. People are rushing more towards crowdfunding and alternate sources of financing rather than getting funds from traditional channels like banks, VC’s or investors. The concept works on getting small amounts from a very large number of people, typically over the Internet. Not only does it provide funds to the project owner but it also helps in getting publicized and validation of their product/idea from the crowd.
Your crowdfunding campaign typically initiates with a story and a script to describe what you are up to, a pitch video outlining the finer aspects of your project, and a non-monetary reward structure to excite a large number of backers. Since you are trying to get funds from the crowd, don’t forget to render it with creativity to excite and incite an action from people at first glance itself.
While preparing for your crowdfunding campaign, what all things do you keep in mind? Is it the way you are going to execute, or is it how you are going to influence your potential backers? But what, when you don’t have enough time to run a campaign like others, say 60-90 days! If you proceed strategically and are fully prepared with your home-work, then a smaller time frame is also more than sufficient for you to conquer the interest of the crowd.
As a first step, you should be ready with your network. Here, network means your friends, family, relatives, social media connections and even your third door neighbors. Launching the campaign and then letting people know about it could be one of your biggest crowdfunding mistakes. Each of your networks would take some time to think and analyze, and also to communicate within their immediate circles about the upcoming project. So, why not utilize this time of spreading the word while you are simultaneously building your campaign like video or the story? By the time you are ready to launch your campaign, you will be overwhelmed with many supporters and folks who are looking forward to getting your project started.
To finish the campaign in a timely manner, you need to get it funded as early as possible which would also result in setting records or the next breaking headlines. Once you are ready with your potential backers, now you need to make them willing to invest as the project launches. This could be done by creating a pre-fixed date of launching your project. Make sure that you effectively communicate the date and the deadline too. Rather be prepared with an information brochure, with all relevant details which you must convey to your patrons motivating them to contribute, most important being the Launching date.
Ensure that your campaign gets funding in the initial hours of launch, as even your best friend wouldn’t contribute if he sees the campaign funding empty. This would build the traction among the general crowd. Also, make efforts to use your bigger investors to the maximum possible extent. With this, you will be able to build a momentum for your campaign, especially when a certain amount of funding is already being done. Also, It is far more beneficial to showcase your progress continuously rather than getting a larger amount at once and stopping after that.
Last but not the least, continuously interacting with your existing supporters and potential ones builds a lot of credibility for the project and for you as an individual- both imperative for success.
So, get going and engage with the various stakeholders and make your dream a reality.