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What do you do if you have a great idea but can’t get face time with essential investors? One of your options is to start a crowdfunding campaign. Many new ventures have gotten their start thanks to crowdfunding. Unfortunately, many more have failed for every business or project that’s successfully used crowdfunding to get up and run. That doesn’t have to be the case for your project. These six savvy crowdfunding tips ensure your project gets massive community and financial support.
1. Validate Your Product Idea.
First things first, before you start hitting others up for the money, you’ll need to validate your idea. You can begin this process by sharing your opinion with others and getting feedback. Just be careful about who you approach. You don’t want the advice of the perpetually negative, but you also don’t want to seek out the opinions of those who are just going to tell you that you are brilliant.
Find people that you know will be honest and who will play the devil’s advocate. You may consider a patent search to find out if someone else has already invented your idea. You could reach out to a professional organization such as InventHelp. This is an adamant part of this process because you may discover that an idea you’ve fallen in love with already exists. Of course, if you have to deal with failure, it is much easier at this phase than later on.
2. Scope Your Competition And Similar Campaigns.
If your product idea passes muster, your next step is to scope your competition and see how similar campaigns are performing on crowdfunding platforms. If you go to market, who will you be up against? This requires some leg work. Go to Amazon and see if similar products are already on the market. Can you disrupt them by offering up something better or less expensive? Are there companies in your niche who could potentially come to market and disrupt you? These aren’t necessarily deal breakers, but you do need to be prepared to prove that your product can stand up to the stiff competition.
Next, look at other projects on the crowdfunding platforms you are exploring. If they are full of other products and services that are similar to yours, that could spell trouble. Even if you are the only one offering up your specific product, getting attention or investment dollars will be tough if there are many similar products in your niche. For example, folks might scroll right past yours if you have a sports-related startup that you are trying to launch and there are dozens of other sports-related campaigns on a crowdfunding platform.
3. Consider Alternative And Less Crowded Platforms.
If you are worried about getting lost in a sea of other projects, you might look into alternative platforms or platforms that are niche specific. For example, suppose you have an idea for a new invention or have created a working prototype of a design. In that case, you might look into Fund an Idea, a crowdfunding platform specifically for inventors. There are also specific campaigns for open-source software projects, funding your college education, environmentally friendly startups, social justice causes, entertainment industry projects, and funding that focuses on members of the LGBT community.
Another option that you have is to start a self-hosted campaign. In this case, you would create a website for your project and find ways to draw in traffic and convert visitors into investors. It’s a risky bet, but it would mean that you will not be going up against hundreds of other projects vying for attention.
4. Invest in Creating Attractive Visuals And a Unique Storyline.
Think of the crowdfunding ideas that you have seen go viral. Most of them had two things in common. They told a compelling story, and they used attractive visuals to get that story across. This is where most of it should go if you have money to spend. First and foremost, what is your account? How did you come up with your idea? Who have you helped so far? What are your dreams and goals? Finally, who are you trying to reach out to with your crowdfunding campaign, and what will appeal to them? You might consider pulling at their heartstrings or making them laugh.
Once you know the story you need to tell, you must decide how to get that story across. A video is always a good option, as are presentations or infographics. A combination of visual elements might be the best choice. Whatever you choose, don’t skimp. Production values are fundamental. If you aren’t up to the task, you might need to bring in a professional. If you can’t afford an experienced, choose a visual medium that you are capable of working with. Remember that a nicely done PowerPoint presentation will work better for you than a mediocre video.
5. Work on Your Social Media Presence or Find Ambassadors.
Creating a presence on a crowdfunding site alone isn’t going to get your project funded. You must have a full-blown social media presence and a website for your project. This is where you will direct people from your crowdfunding page who want to engage with you and learn more about what you are planning to do with investments. You’ll want to keep people excited about your project by posting updates, sharing images, and promoting your followers’ projects and content.
Once you have a following, you’ll want to identify the people you believe will act as your ambassadors. Reach out to them. Offer them incentives for not only investing their money into your campaign but for helping to spread your message to others. You can do this by offering up a cut of future revenues, giving away freebies, or simply forming a mutually beneficial relationship with them. If your product samples are available, these can make attractive gifts for potential spokespersons.
6. Be Strategic With Your Press Outreach
You should promote your campaign on your social media pages and get your friends and family to do the same. However, that isn’t going to get you the traffic you need to launch. You’re going to have to reach out to the media. This begins with creating a press kit. Your press kit should be easily accessible on your website. It should contain all of the information that members of the press might need to know if they choose to do a story on your campaign. Of course, your initial outreach won’t necessarily be to media outlets per se. Your press kit will be helpful to anybody who wants to discuss your project. To get started, you might consider reaching out to bloggers in your niche and then building up to speaking to people in the media.
