30 May Tips and tricks on how to make your crowdfunding campaign successful
Crowdfunding provides an excellent platform for gathering support to: jumpstart marketing efforts, expand customer base, or reach out to friends and family for additional funding. We at LC Media , have helped hundreds of entrepreneurs with successful fundraisers for a variety of different goals. We have taken our extensive experience and knowhow and developed nine necessary strategies to launch a successful crowdfunding project.
Here are some tips and tricks we’ve learned from our experiences in crowdfunding:
1. MAKE SURE YOUR PITCH IS GENUINE
A crowdfunding pitch is not the same as a sales pitch. You don’t want to come off as pushy or arrogant. People will donate because they believe in you and truly want your project to succeed. Potential backers will be excited to support your venture if you show sincere passion for your project.
2. USE YOUR FAN BASE TO SPREAD THE WORD
It helps to pad your campaign with some initial donations to establish legitimacy. If potential backers see that other people have already donated, it will build trust. Share your campaign privately with your fans, followers, friends, and family first. They already know and trust you. Their contribution will inspire others to believe in you as well.
3. KEEP YOUR BACKERS IN THE LOOP
Update the crowd proposal and communicate with your backers as often as you can. This way, everyone who is involved actually feels like they are involved. Even once the campaign is over, you still need to be actively talking to your fans, because they’re more than your fans: they’re your investors; and they deserve to be kept in the loop when it comes to the product they have invested in.
4. FACTOR IN ALL COSTS WHEN SETTING GOALS
When setting a funding goal for your campaign, you need to consider everything that will be involved to complete your project. Make sure to factor in the cut that the crowdfunding platform takes, as well as the cost to produce and deliver perks. Even once you’ve taken those things into consideration there still may be unexpected costs. Make sure that you double your figures before you set your perks and goal, since it is harder to ask for more money once you’ve reached your goal.
5. BE TRANSPARENT ABOUT YOUR SPENDING
It’s not unusual for people who don’t have experience in a certain field to be unsure about the costs that go into producing a product. That is why you need to be very transparent about why you’re asking for that specific amount of money and how it will be spent. Transparency will help earn your backers’ trust in your venture while reassuring them that you’re not spending their money on things like fancy dinners and vacations.
6. ASK FANS FOR PERK SUGGESTIONS
Before settling on your perks (the rewards you give your users in return for backing your project) it is a good idea to check with your fans to see if they’re actually interested in what you’re offering. Some physical perks cost a lot more money to produce in small quantities than they would if you placed a bulk order. If you think most people will want a specific perk and it turns out that only a few are interested in it, it could end up costing significantly more to produce less.
7. TRY OFFERING FREE OR INEXPENSIVE PERKS
Just because your backers are paying money doesn’t mean that your perks have to cost a lot of money (or any money at all). Try to come up with inexpensive or free perks to reward your backers. You may even be able to come up with some free options that are actually more valuable to your fans than something they could purchase with their own money.
For example: A Skype meeting or “date” with your fans or a live-stream where you talk to your backers.
You’d be surprised how much money fans will be willing to donate for a chance to meet their idols, whether it’s in person or via video chat.
8. AVOID PERKS THAT REQUIRE SHIPPING
Stay away from offering physical objects for perks as much as possible. For instance, if you’re raising money to make a film, offer digital downloads instead of DVDs. This will save on both money and manpower. It costs more to produce those physical items and on top of that it will cost money to mail them. Packages don’t mail themselves and it can take hours, days, or weeks to ship out perks depending on how many backers you get.
If you do need to ship out perks, make sure to double-check addresses before you send them out.
9. GIVE YOURSELF PLENTY OF TIME TO FULFILL PERKS
Give yourself lots of time to fulfill the perks. You don’t want to have to put off actually working on your project because you’re too busy fulfilling your perk requests.