Crowdfunding has become an increasingly popular over the last several years for both investors and entrepreneurs. The fact is, in just a few years, crowdfunding has already proven itself to be a successful alternative in acquiring or investing money. For every successful crowdfunding campaign we hear about, there are many more that have completely failed to meet their goal. But launching a crowdfunding campaign is not an easy task, as you will face many struggles to push towards your funding goal.
The success and failure of a crowdfunding campaign do not depend upon the product idea. No matter how good or bad your business ideas are, but if people are not aware of it, then your crowdfunding campaign may fail to reach the goal. So the main task for running a crowdfunding campaign is to know how to promote your campaign. Here are a few guides to crowdfunding success.
Choose a right platform for your campaign
There are numbers of crowdfunding platform and the project creators need to understand which platform is best to use depending upon the type of product or service that they want to launch. There are more than 30 crowdfunding platforms and every platform has its own preferences. Some of the main crowdfunding platforms include Kickstarter, Indiegogo, GoFundMe, CrowdRise, RocketHub, and many more.
Kickstarter and Indiegogo are reward based crowdfunding platforms and if anyone planning to run a crowdfunding campaign for tech gadget, then both Kickstarter and Indiegogo are among the best ones, as these platforms are popular with gadget lovers. GoFundMe and CrowdRise are donation based crowdfunding platforms. GoFundMe is best for personal campaigns and for public causes and charity projects, you can use CrowdRise. So before launching a campaign do some research to find the right platform for your campaign.
Plan Your Campaign in Extreme Detail
Planning is crucial before proceeding for any work or activity. It will decide your success or failure, so make sure to plan your crowdfunding campaign as detailed as possible. For every successful crowdfunding campaign we hear about, there are many more that have completely failed to meet their goal. Running a crowdfunding campaign needs full time engagement. Most successful campaigners spend months planning their campaigns before the campaign goes Live. You need to set or planned everything before the campaign goes live such as marketing strategies, emails list, social channels, decide how and when you’re going to give your backers updates, what if the campaign fails or reached its target. Whether you’re raising money for an innovative product, social cause, creative film idea, or any other reason, you must have a strategy that you need to take to launch and manage a successful crowdfunding campaign.
Setup the Most Attractive Rewards
According to research and analysis, perks help increase the chances of campaign success. So spend time in creating a variety of perks to suit every budget and potential backers and that offers real value of your product. There are many reasons for people to support a crowdfunding campaign, but a good reward often perk up the traffic of backers. While creating perks, don’t forget to introduce the early bird offer which is a great way to build momentum. Remember that you should offer the best reward on the most popular tier of pledge. Indiegogo released a statistic showing most backers prefer $11-25 pledge, with $26-50 as the runner-up. Kickstarter strengthened the statistic result by stating that $25 is the most popular pledge amount, and $10 or less is always a good idea.
Successful funding is just a start
Even after reaching the goal, a crowdfunding campaign is not successful until it has done the product delivery. According to the report, more than 75 percent of crowdfunded project missed its delivery date. There may be many reasons for the delay such as design problems, fails to receive parts, due to unforeseen cost, and many more. If you fail to deliver the product on time, make sure to update the backers regarding the delay and don’t promise a second deadline unless you are very sure or close to it. You can also include a precise report detailing your undergoing processes with photos so that backers believe your delay.
If you failed, quit it properly
If you fail to reach the target or fail to deliver the product, then make sure to quit properly. If you quit in a proper way then it will leave a good reputation for you and if you are planning to run another campaign in the future, then it is quite important to have a good reputation in the past. If you fail to deliver the product, then explain all your problems honestly. Treat your backers as a part of your campaign and discussed your remaining options or future plans with them.
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