Whether you’re an experienced business professional or a young starving artist, your ideas often need funds. In the past you had to find investors, borrow from friends, or rely on your own income to support your idea. But more and more people today turn to something called crowdfunding. It’s a way for people with ideas for a cool product or service to connect with a large group of people that want to help raise the startup funds. Platforms like Kickstarter, GoFundMe, and Patreon make it possible for many people to give small amounts of money to one cause. And as the market for crowdfunding has increased, so have the options available. Now, you can crowdfund for a charity, a community event, or medical expenses. The only thing stopping you from raising capital is figuring out what people want to spend money on, and making your campaign the best one out there.
There are several factors that affect whether or not people donate to your campaign. Usually campaigns have rewards like exclusive products and content available only to donors. The quality and value of the rewards increase as the donation value increases, so it’s not uncommon to see donations for thousands of dollars. Many people feel incentivized to donate once they know they will have access to something exclusive.
The next step in ensuring your campaign garners funds, is to carefully craft your message. It helps to have a clear and digestible explanation of your idea. Not only will it make it easier for people to understand, but it will also help demonstrate a level of competence. Consider including a video that explains the product, but also helps people understand a real person is behind the project. People feel confident their money will be used wisely when they donate to a campaign they feel is more fleshed out.
Another important part of a successful crowdfunding campaign is sharing it. While platforms like kickstarter provide a space for you and a potential donor to connect, that doesn’t mean people will be able to easily discover your idea. Because the crowdfunding market is now relatively saturated, there are too many crowdfunding campaigns competing for attention for the average person to stumble upon your idea themselves. You can get the word out about your campaign by sharing it on social media, asking friends and family to share, and doing targeted outreach to publications.
Once your begin marketing your campaign, you’ll reap more benefits than simply raising funds. You will also gain vital insight into who your audience is and what types of content or products they prefer. It may surprise you who is the most interested in your product, and allow you to add features or additional products to serve the needs of your newly-identified audience. In addition, even if your campaign doesn’t gain massive success, that can also be a crucial learning experience. Based on people’s reaction to your product, you can change certain aspects and test what works best on the market with little financial risk. In the past you would simply have to create a product and see how it does to get any real feedback. But now, crowdfunding allows you to market test before spending all your money.
You should keep all the possible benefits to crowdfunding in mind as you start your journey, as they will help keep you motivated. Most importantly, don’t forget the work that goes into creating a successful campaign. It takes quality communication, rewards, and sharing is essential to a successful campaign. To help even more with funding your business and get started on your campaign, Fundera created this useful infographic guide on how to get started crowdfunding. Keep reading to learn more about the benefits and types of crowdfunding.