ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / PERSONAL FINANCE

Design a Smart Crowdfunding Campaign With These 10 Strategies

You can improve your chances of reaching your funding goals by learning from successful crowdfunding stories.
PUBLISHED JAN 4, 2024
Image Source: Photo by fauxels | Pexels
Image Source: Photo by fauxels | Pexels

How do you host a successful crowdfunding round? 

Image Source: Photo by RDNE Stock project | Pexels
Pitching an idea (representational image) | Photo by RDNE Stock project | Pexels

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

Image Source: Photo by RDNE Stock project | Pexels
Business checklist (representational image) | Photo by RDNE Stock project | Pexels

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

Image Source: Photo by Vanessa Garcia | Pexels
Crowdfuncing campaign (representational image) | Photo by Vanessa Garcia | Pexels

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

Image Source: Photo by fauxels | Pexels
Presenting a story (representational image) | Photo by fauxels | Pexels

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

Image Source: Photo by Vanessa Garcia | Pexels
Filming marketing videos (representational image) | Photo by Vanessa Garcia | Pexels

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

Image Source: Photo by Burst |Pexels
Email marketing campaign (representational image) | Photo by Burst |Pexels

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

Image Source: Photo by RDNE Stock project | Pexels
Leverage every connection in your network (representational image) | Photo by RDNE Stock project | Pexels

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

Image Source: Photo by Airam Dato-on | Pexels
LinkedIn is a great place for crowdfunding | Photo by Airam Dato-on | Pexels

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

Image Source: Photo by Ivan Samkov | Pexels
Crowdfunding platforms should have a simple interface (representational image) | Photo by Ivan Samkov | Pexels

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

Image Source: Photo by Christina Morillo | Pexels
Incetivize your donors | Photo by Christina Morillo | Pexels

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 

Image Source: Photo by fauxels | Pexels
Keep your audience informed (representational image) | Photo by fauxels | Pexels

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.

MORE ON MARKET REALIST
The Maserati driving kid has shared several videos on TikTok showing off her money collections.
3 days ago
There are several reasons why it only costs $10,000 to open a Chick-fil-A location. Keep reading to learn about all the details.
6 days ago
Here are three key learnings from the radio host, bestselling author, and personal finance expert's money secrets.
Sep 26, 2024
Buying a car is a major financial investment and that's why you should know how to negotiate a car loan before you go to the dealership.
Sep 23, 2024
If you've invested in rental property, you should consider multiple factors when deciding whether it's the best time to sell.
Sep 22, 2024
The real estate market may have cooled a little, but if you received a text message asking to buy your house, you may want to investigate.
Sep 21, 2024
The man dressed in a cartoon costume during the cheque presentation ceremony to protect his identity.
Sep 20, 2024
You can block fraudsters from using your child’s SSN and other personal information by freezing their credit file.
Sep 20, 2024
An obvious perk of having a home with a driveway is the extra space. If you want to make some extra cash, here's how to rent out your driveway.
Sep 19, 2024
TikTok creator Lindsay wasn't happy with Cuban asking the working class to cut down on happiness.
Sep 17, 2024
The bill with a printing error could multiply in value if it grabs collectors' attention.
Sep 17, 2024
While some celebrities are infamous for being stingy, Derulo is known to be a generous tipper.
Sep 16, 2024
"They say money can't buy happiness, but Maybank knows how to buy frustration," she said.
Sep 14, 2024
While there could be millions of such pairs out there, only nine sets have been found so far.
Sep 14, 2024
Social media users suggest that this habit is a clear giveaway of someone's age.
Sep 13, 2024
The man who cooked potatoes on a car windshield failed despite achieving his life's mission
Sep 11, 2024
Robert Reich, an admitted Baby Boomer, and former Secretary of Labor in the Clinton Administration took to the Internet to explain this discrepancy.
Sep 10, 2024
The TikToker reordered the same items he bought two years ago on Walmart's app.
Sep 10, 2024