Design a Smart Crowdfunding Campaign With These 10 Strategies

How do you host a successful crowdfunding round? 

When getting the best business loans seems tough, crowdfunding can be a good option. But getting people to support your campaign isn't easy. How do you convince them to choose your project over others they could spend their money on? You can improve your chances of reaching your funding goals by learning from successful crowdfunding stories. Growing your business by taking cues from those who have successfully crowdfunded their ventures is advisable. So today we discuss some ways you can host a successful crowdfunding campaign.

1. Define a target

Establishing a specific funding target is a key strategy to garner support for your project. By defining a clear goal, potential backers are more likely to get on board as it provides a tangible objective for them to support. However, it's crucial to ensure that your funding goal is realistic and attainable. Siva Mahesh, CEO of Dreamshala, emphasizes the importance of setting achievable goals, stating that people are more inclined to support a project when they can envision its successful conclusion. This approach creates transparency and instills confidence in backers, making them more willing to contribute to your crowdfunding campaign.

2. Get Professional help

According to Brian Hooks, owner of Left of BANG Entertainment, the key to a successful crowdfunding campaign is to avoid going at it alone. Instead, seek support from a company or individual with expertise in crowdfunding campaigns. They can guide you through the process, ensuring that you cover all the necessary elements for a robust campaign. Additionally, choosing a reputable crowdfunding platform dedicated to assisting you in securing the necessary funds is crucial. While Kickstarter is often a popular choice, exploring alternative platforms tailored to your needs is also worth considering.

3. Tell your story

People are more inclined to support your cause when they know who they're helping and why it matters. Sharing a genuine and memorable story can make a significant impact. Given the challenges many small businesses face, honesty is crucial. Siva Mahesh emphasizes the importance of explaining the narrative behind your business and why these funds are essential. When crafting your campaign, provide detailed information to help potential supporters understand your story. Mahesh advises authenticity and transparency as people are more likely to help when your story is clear and genuine. Being open about your needs fosters a connection that encourages support for your crowdfunding campaign.

4. Film a marketing video

Videos outshine infographics and images when it comes to engaging an audience. A well-crafted video with compelling visuals, sound, and narration can effectively draw in donors, serving as a powerful marketing tool for your campaign. Yaniv Masjedi, Chief Marketing Officer at Nextiva, emphasizes the importance of seeking feedback from peers before releasing your video to the public. Ensure that your video is seamless and captivating, free of dull moments or lapses. This meticulous approach enhances the video's effectiveness, making it more likely to capture and maintain the attention of your audience during your crowdfunding campaign.

5. Email marketing campaign

Keep your customers in the loop about your campaign by sending them an email that provides all the essential details for participation. Directly reaching out to your contact list with the campaign link is a straightforward and efficient method to encourage your loyal customers to join in and support your fundraiser. In your email, ensure clarity and completeness, making it easy for recipients to understand the purpose of the campaign and how they can contribute. This direct communication not only engages your existing customer base but also creates a personal connection, increasing the likelihood of their active participation in your crowdfunding efforts.

6. Leverage your connections

During crowdfunding, leverage every connection in your network, advises Kimberly Smith, Growth Marketing Manager at Audicus. Encourage your client base, family, friends, and community to spread the word about your campaign within their networks. Utilizing your connections to reach others can generate momentum and increase awareness. Even if individuals don't contribute, their ability to share your campaign with their friends is equally valuable. This expands the visibility of your campaign to those unfamiliar with your business, potentially boosting participation. In essence, tapping into diverse networks through your connections becomes a powerful strategy for gaining traction and support during your crowdfunding efforts.

7. LinkedIn is your best friend

Instagram, Facebook, and Twitter are well-known for business marketing but don't overlook LinkedIn, especially for equity crowdfunding. LinkedIn provides a platform to connect with fellow business owners who understand your entrepreneurial challenges and funding needs. This targeted audience is more likely to support your campaign. Kimberly Smith stresses the importance of sharing your crowdfunding campaign on social channels to boost visibility and awareness. For small business owners, ensuring easy participation for potential donors is crucial. Linking your crowdfunding campaign to social posts simplifies the process, allowing your audience to navigate to your campaign page with just a swipe or click. This seamless integration enhances accessibility and encourages active participation in your crowdfunding efforts.

8. Simplify your crowdfunding platform

A platform with a confusing interface can discourage potential donors. While you don't need to provide an exhaustive tutorial on using crowdfunding platforms like GoFundMe or Kickstarter, it's essential to include relevant details in your campaign promotion. Briefly discuss the platform's security measures and provide simple instructions on how backers can use it. This information reassures donors about the safety and ease of using the platform to invest in your business, fostering their confidence and making them more likely to contribute to your fundraiser.

9. Offer incentives

Incentivize your donors with meaningful rewards tied to the size of their contributions, ensuring they are genuinely worthwhile. Offering attractive incentives can significantly boost support for your campaign. Kimberly Smith recommends options like raffling off products or providing discounted memberships to your service. These incentives not only add value for backers but also create a more compelling reason for others to contribute. Well-thought-out rewards not only express gratitude to donors but also serve as effective motivators, increasing the overall appeal of your crowdfunding campaign.

10. Keep your audience informed 

To maintain the interest of participants and potential backers in your fundraising journey, it's crucial to provide regular updates on your progress. Keeping your audience informed monthly or biweekly, depending on your campaign's duration, ensures your fundraiser stays in their minds. According to Will Ward, co-founder of Industry Arabic, consistent updates help to keep your campaign at the forefront of your audience's attention. This ongoing communication demonstrates transparency and reinforces the story of your journey, fostering a sense of connection and engagement among your supporters.