Over the past 3 years we’ve helped many product designers, startups, entrepreneurs and innovators reach their funding goals on crowdfunding sites like Kickstarter, and Indiegogo. What we have learned in this process is an invaluable tool for any business owner or entrepreneur who needs an efficient strategy to succeed and make their business grow. We wanted to share the most important lessons we’ve learned by explaining how a crowdfunding campaign is done, what you need to succeed and how you can incorporate this system into any business in order to help it expand and increase its value.
Market Research: Do your homework. Crowdfunding has matured and you will probably find similar projects like yours.
- Make a list of similar projects
- Analyze the best and worst campaigns: Get to know what worked and what didn’t and leverage this knowledge to your advantage. With this analysis you will be able to define successful calls to action, keywords, types of video *funny vs serious*, and the news outlets that covered those projects and which you can then reach out to, since you will know they already have an interest in the topic.
- Target their backers: Most likely than not their backers are already following the past similar projects on Facebook, Twitter, Instagram. Follow them back, engage, comment, share! You will gain a powerful support by doing this..
Social Media: Once you’ve done your research, it’s time to start an awareness campaign. People sometimes have the wrong idea that launching on Kickstarter will get them the funds immediately. This rarely happens. Most successful projects will have their support from friends, family, acquaintances, partners, fans and followers established months before the launch. A crowdfunding campaign works like the presidential elections. You will need to educate people about crowdfunding and the site you will use, enlist them as volunteers to help you get the word out, incentivize them with referral programs.
Crowdfunding Strategy: This includes writing an efficient and clear sales pitch with sufficient information to convert visitors into backers and supporters/promoters. Your sales pitch should be less than 500 words and include: why you are crowdfunding, definition of problem, solution provided, use of funds, team, rewards, stretch goals (if available), and referral program (if available).
Press: Research, Research! Understand which outlets will be interested, figure out the story angle, what makes you unique vs similar products or startups, write a pitch letter and press release. DO NOT ASK PRESS TO SUPPORT YOUR CROWDFUNDING CAMPAIGN! This is a major pet peeve for journalists who get more than 500/daily emails from people with kickstarter or indiegogo campaigns with the subject: Please support our campaign. Give them value by understanding what will their readers like to know about your product, idea or startup.
Results: If you can successfully execute all of the above points, you will have enough metrics to leverage distribution deals, investment proposals, acquisitions, understand what your customers like, improve your product or idea and execute a very successful start. We at Crowdco understand how time can be a limiting factor for project owners and are always happy to connect and answer any questions or if needed, help you get your project moving forward.