Suppose you’re looking to get funding for your business idea, without easy access to big-spending venture capitalists or angel investors. In that case, a crowdfunding campaign might give you that initial push to make your dreams come alive. Money makes the world go ’round. It is an irreplaceable part of all business endeavours. Without adequate capital, all you have is a pipe dream.
Investors are mainly concerned about the returns on their investment. Hence, traditional funding platforms such as the stock market are primarily skewed towards well-established and highly profitable companies. Asides from the fact that risks and challenges facing the survival of a new business are gargantuan, it is difficult for new companies to prove or at least convince investors or banks that an idea will be profitable.
Crowdfunding is one of the unorthodox methods for new or distressed businesses to acquire enough capital hit the ground running. In recent times, platforms like Kickstarter and Indiegogo have provided ample avenues for companies to raise much-needed capital through crowdfunding. However, for a crowdfunding campaign or crowdfunding fulfillment to be successful, it requires meticulous planning and strategy. Fulfillman provides professional crowdfunding fulfillment services. Here are seven key factors to consider for a successful crowdfunding campaign.
Create a Brand Story
A compelling story will make any idea more captivating to the public and increase your chances of success. To achieve this, you have to employ excellent communication skills, use the right words, and channel delivery appropriate for the industry you’re trying to operate.
A brand story should be inspiring, clear, unambiguous and delivered with an appropriate mix of personal and professional tone. It needs to be long enough to provide all necessary product information and short enough to avoid the audience losing interest.
An overly professional tone will make the brand seem cold and un-relatable to your potential donors. Remember that it is not a board room presentation, don’t be afraid to explore humor and color in your campaign materials.
Create a Reward System
Crowdfunding backers are also rational people who want incentives for their efforts. Do not forget to establish a transparent reward system that communicates what’s in it for each investor. It would help if you tied this to the magnitude of contribution.
To draw in many backers, you have to offer them unique or outstanding rewards for their time, effort and money. For instance, you can provide unique access to your products, exclusive access to prototype products, create exclusive product features to reward backers that contribute up to a certain milestone amount.
Crowdfunding communities tend to be passionate groups who would love to have some exclusivity level to a product they help create. A reward system helps them feel like they are also part of the process.
Facts, Figures & Visuals
No right-thinking consumer will stomp up money into your product that they do not know enough about its workability or long-term sustainability. Hence, the onus is on you to provide them with as much information as required to keep them informed of your success prospects.
To attain this, you need to make use of relevant facts and figures to point towards your product’s success. It would also help if you presented these figures in a visually attractive way as it is proven that humans can assimilate visual information much quicker than texts.
Real testimonials from people that have tried your prototypes or a short video of your product in motion/action will provide a first-hand feel for your potential backers.
Provide Progress Report & Feedback Loop
Communicating with your backers will significantly improve the chances of your crowdfunding campaign succeeding if you devise a means to keep your backers involved in the whole process. If you discontinue communication with your backers, they could lose interest or move on to other things. Your credibility can only be as high as what your backers can see or perceive about your product.
When you share regular updates, you increase your chances of securing more funding or attracting more backers. Most crowdfunding platforms have tools and features built-in to enable your to provide updates about your products or send direct messages to your backers. Ensure you take full advantage of these tools.
However, be honest and realistic. As much as you want to inspire your audience, it would help if you also were transparent when things are not going as planned. Provide honest updates and back it up with messages of assurance that you can achieve the goals you promised!
Work With an Established Company in Your Value Chain
One way to ensure a successful crowdfunding campaign is to build trust. Showing members of the public that they can trust your company, your credibility, or your judgment is usually quite complicated. Mostly when if you have not made any giant public strides in the past. One way to bridge this gap is to have your brand affiliated with a well-established name, company or relevant industry influencer.
For example, having your books of accounts audited by a notable big-four firm, getting raw material supplies from a well-known firm or getting a celebrity to endorse your product can all do you a world of good.
Promote Your Campaign
This is probably the most crucial step in crowdfunding. To ensure success, you have to deploy every trick in the book to put the “crowd” in the crowdfunding campaign. This involves getting as many people potential backers as possible to become aware of your campaign.
Even if you are cash-strapped, there are many relatively cheap ways to spread your gospel to millions of million without breaking the bank. You can use your social media platforms to spread your message with Ads and organic reach. It could also help if you reach out to a team of media and bloggers relevant to your industry to get some organic coverage for your campaign.
Your campaign is doomed to fail if nobody knows about it, so ensure to leverage your social relationships and make use of every marketing channel available within your Budget.
You must ensure that your products work as promised and deliver all solutions that you have projected in your marketing material, props and prototypes. This denotes that you have to complete the project, deliver on all goals, rewards, and promises and ensure that you maintain constant communication with your supporters along the line. Only when you have achieved all of these can you confidently declare your crowdfunding campaign a successful one.
There you have it! Above are some things to consider for a successful crowdfunding campaign. The world has changed. Access to capital has never been this easy and straightforward. However, always remember the cardinal rule that, your campaign does not end when you reach your funding goal. It is only over when you have fulfilled the goals, milestones, and solutions you promised in the process.
For more information about our crowdfunding fulfillment services, contact us today at Fulfillman. We specialize in picking, packing, and shipping backer rewards and products of different sizes and shapes. Our services are prompt, detailed, and highly reliable. Our dedicated team will be available to speak with you and provide suitable answers to your questions and concerns. When it comes to handling the logistical aspect of your crowdfunding campaign, you can always count on us for outstanding and unparalleled services.