In 2019, the global crowdfunding market generated $13.93 billion. It is estimated that this figure will almost triple to $39 billion by 2026. It is no surprise that many entrepreneurs and startups are trying to utilize it for their business projects. This task, however, is not easy. The success of a crowdfunding campaign depends on its quality. Here are some practical guidelines on how to achieve it:
1. Plan your crowdfunding campaign page. Before launching your campaign, read carefully the guidelines of the platform that you are using. It could be also useful to analyze existing campaigns to find out what works and what does not. Firstly, choose a clear campaign title so it is easily understandable and can better attract the attention of potential backers. Then you need to create a clear pitch which provides all the information potential backers need.
2. Ask the right people for donations. Go through your network and find people who are likely to support your crowdfunding campaign. Remember that not everyone will be enthusiastic about your project. Focus your energy on people who are likely to make contributions. If you ask the right people for donations, you can establish a strong donor base. Some of these people might support you more than once. This strategy is more effective than making a mass appeal.
3. Promote your crowdfunding campaign. The success of your crowdfunding campaign depends on marketing. Before launching your campaign, use social media, press, networking, local radio and promotional materials to create buzz around your project. Aim to attract investors on the first day of your campaign. It is also very important to plan the promotion of your crowdfunding campaign during the campaign itself.
4. Monetize your pain point. The purpose of a new product is to solve a problem and relieve a pain point. A crowdfunding campaign will be successful if people believe that the promoted product can relieve one of their pain points. “You need to be able to convey the value of the product if you want them to support your crowdfunding project. If they don’t believe it will work, they won’t back it,” explains Chalmers Brown, a serial entrepreneur and Co-founder of Due, an online invoicing platform.
5. Utilize social media. People might come across your campaign on the crowdfunding platform, but you should be actively promoting your campaign on other channels. Promotion is key to the campaign’s success. Social media is a perfect channel to spread the word about your project and tell your story. To utilize social media, try to think of creative ways to engage with your audience and build relationships with potential investors.