Small businesses have begun to recognize the growing crowdfunding industry as a legitimate means of raising capital. This alternative fundraising solution has real upside, but many of these endeavors fail because they do not use crowdfunding best practices. In this article, Adam Ferrari gives 5 fundraising tips that can lead to the successful launch of a crowdfunding campaign for any small business.
Come Up with a Dedicated Pre-Launch Strategy
A crowdfunding campaign does not begin when the campaign is officially launched. To provoke interest from potential backers, a dedicated pre-launch strategy should be implemented. Through compiling email lists, utilizing social platforms, and using targeted marketing techniques, you can create anticipation for your launch before the project goes live on a platform like Kickstarter or Indiegogo. Creating this momentum before the campaign will allow for a dump of funding on your launch date, which will help your project to trend better and receive more attention on the platform.
Invest in a High-Quality Pitch Video
The pitch video is the most crucial aspect of any crowdfunding campaign. This is the first element that potential backers will encounter upon visiting your campaign page, so it must grab their attention. Your video should be visually stimulating and demonstrate several uses of the product. The idea is to emotionally provoke potential backers, showing them a solution to a problem that they face in their lives.
Create an Alluring Title That Delivers Value
Thousands of campaigns are launched on crowdfunding platforms every year. Just as with any business, you are competing for potential backers’ attention. You should put real thought into the titling of your campaign, delivering a promise that construes value to the consumer. Generic, uninteresting titles aren’t going to produce a click. Most successful crowdfunding campaigns identify a problem and propose a solution within the title line. Your subheading can then work to inform the consumer of additional, more specific benefits of your product.
Assemble a Team
A crowdfunding campaign is a lot of work. There is a lot to get done, from marketing to constructing a campaign page to fulfilling promised rewards. It can be challenging to take this all on yourself. By delegating tasks to your team members and freelancers with experience in particular aspects of the project, the campaign will run much smoother. This will free up your time for the essential elements of the project. You can also hire a crowdfunding expert to assist you through the process and vastly increase your chances of reaching your fundraising goal.
Know Your Niche
Certain crowdfunding platforms tend to be more productive for particular niches. For example, if you are launching a tech product, you should do some research into what crowdfunding sites have a large community of backers interested in supporting tech start-ups. Even if your product is outstanding, launching it on the wrong platform without attention to your target market can cripple your campaign before it even begins.
Fundraising may seem a little challenging, but with some knowledge and motivation, it’s easy! Apply these tips, and you will be sure to meet your goals.
About Adam Ferrari
Adam Ferrari is the founder of the mineral acquisitions company Ferrari Energy. He is a chemical engineer by degree and is an accomplished petroleum engineer by profession. He also has experience in the financial sector through his work at an investment banking firm. Under his leadership, his company has supported numerous charitable organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago.