Crowdfunding continues to be a very popular option for entrepreneurs seeking to raise capital for their business projects. It has become attractive because of its numerous obvious advantages over traditional sources of business financing. But it also has to be noted that crowdfunding has its own challenges that an aspiring business owner must be prepared to deal with. It is never a walk in the park to get enough people committing to fund your project. So there must be something unique you offer with your product idea, and again you must know the right people to communicate to about it in the most convincing manner possible. Crowdfund social believes in giving massive value whether you work with us or not, that is why we put out content like this.
Failure rates across popular crowdfunding platforms is still high and in most cases only about 40% of the campaigns launched actually succeed. So it is important to learn some of the best tips for crowdfunding before you go ahead to launch a campaign on Indiegogo, Kickstarter or any other major crowdfunding platform.
Identifying the value of the community
For every business project that requires fundraising the crowdfunding way, there must exist a community that cares about it if it is going to realize any success. So the target audience must be well known and adequate marketing activities used to reach out to prospective backers. Failure to do that alone has been identified through research to be the main reason explaining what happens for the campaigns that fail.
Choosing the right social media platforms
When the target audience has been understood, the next most important thing to do is to identify the channels of communication through which you can engage them. Crowdfunding doesn’t succeed without a strategy to reach a wider audience with your message. Social media today provides the best way you can easily reach your target audience and prospective backers. So your social media presence must be strengthened months before launching the campaign on Indiegogo or Kickstarter. The nature of your business project can guide you in choosing the right social media platforms. Facebook and Twitter are used for almost any type of project because of their numbers. But there are other important platforms to consider taking into account user demographics. A film project can benefit more if also marketed and promoted on YouTube in addition to Facebook and Twitter.
Deciding on the size of your goal
A large goal in most cases reduces chances of success but where it is reached then benefits are more. It can take longer to achieve such a goal, not unless the product idea is very unique and attractive to a large community that cares. But again effective marketing can make a very big difference. If you do adequate social media marketing and quality PR outreach, you can build up the momentum required for the campaign launch. The pitch for your Kickstarter or Indiegogo campaign must be brilliant to stand out from the competition. If you raise significant amounts of money at the beginning of your campaign, that increases chances of hitting your goal because it sends the right signal to potential backers.